A PROJECT REPORT ON CHARACTER ETHICS AND BUSINESS VALUES IN CONTEXT OF HDFC BANK SUBMITTED BY: KAMAL KANT SAINI

ENROLMENT NO : 04611301710 BBA II YR (3rd SEMESTER) In partial fulfillment of the requirements For the reward of the degree OF BACHELOR OF BUSSINESS ADMINISTRATION Under the supervision of MISS CHITRA KHARI

BERI INSTITUTE OF TECHNOLOGY, TRAINING AND RESEARCH TIKRI KALAN, DELHI (Affiliated to Guru Gobind Singh Indraprastha university)

CERTIFICATE
Certificate that this project report titled character ethics and business values is the bonfide work of Mr. Kamal Kant Saini who carried out the research under my supervision. Certified further that to the best of my knowledge the work report here in does not form part of any other project report or dissertation on the basis of which degree or award was confirmed on an earlier occasion on this or any other candidate.

Miss. CHITRA KHARI

PREFACE
Initial in the one module of the project, which is allotted to me, CHARACTER ETHICS AND BUSINESS VALUES is covered in this project report. The report contains very nice and well arranged topics related to the subject CHARACTER ETHICS AND BUSINESS VALUES. The main contents of this project describes that That what are ethics, Code of Ethics, Business Ethics and many other topics which is countable in the CHARACTER ETHICS AND BUSINESS VALUES. The project report also contains a description of Business Ethics which is very important for an organization to work fairly in an environment. Overall this reports my work like a guide for the subject CHARACTER ETHICS AND BUSINESS VALUES.

ACKNOWLEDGEMENT
I would like to take this opportunity to sincerely thank Miss. Chitra khari for her valuable support, guidance and suggestion. Under his able to accomplish my project with confidence. I would also like to thanks my friends and my siblings who directly or indirectly helped me in my project. I would also like to sincerely thank our Beri Institute Of Technology Training And Research. Where, I spared my time to have access to wide information on internet.

DATE: PLACE:

OBJECTIVE OF STUDY

The main objectives of the project were: To gain more information about values and character ethics To know the importance of values in business. To study and evaluate human conduct in the light of moral principles. To collect information about the involvement of ethics in human activities including business.

CONTENTS
CERTIFICATE..(ii) PREFACE...(iii) ANCKNOWLEDGEMENT..(iv)

CHAPTER -1
INTRODUCTION
a.) INDUSTRIAL REVIEW b.) COMPANEY PROFILE c.) SWOT ANALYSIS d.) COMPETITOR ANALYSIS

CHAPTER - 2
CONCEPTUAL DISCUSSION

CHAPTER -3
a.) RESEARCH METHODOLOGY

CHAPTER 4
DATA ANALYSIS AND FINDINGS

CHAPTER-5
SUGGESTION AND CONCLUSIONS

BIBLIOGRAPHY

INDUSTRIAL REVIEW

HDFC bank was among the few private banks to have started their operations in 1994 after the government of India allowed new private banks to emerge in Indian banking sector. Housing development and Finance Corporation of India has been credited with being one of the best financial bank in India with the track record of giving the best financial advice to its customers and offering the best products and services in banking area. Due to its impeccable service offered to the customer as per their demand and convenience, HDFC bank has become one of the leading banks in India offering customer service. In fact customers credit it for being one of the finest in customer service leading to easy and convenient banking. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC has positioned itself as being the bank that cares for the customers. HDFC Bank provides a variety of wholesale, retail, and depository financial services through more than 1,400 branches and some 3,000 ATMs throughout India. Established by the Housing Development Finance Corporation in 1994, the bank offers deposit accounts, loans, credit cards, insurance, investments, and related services. HDFC Bank targets individual customers in the middle and upper-class, as well as trusts, small businesses.

COMPANY PROFILE
HDFC bank is a leading private sector bank and financial services company in India. The bank aspires to be the preferred provider of financial services to upper- and middle-

income individuals and leading corporations in India. The strategy of the bank over the years have been to provide a comprehensive range of financial products and services for the customers through multiple distribution channels, with high quality service and superior execution of the services offered. The bank principally deals into mainly three business activities which can be categorized as: retail banking, wholesale banking and treasury operations. The bank has achieved tremendous growth since it started its operations in January 1995. Over the last five years it has expanded operations from 231 branches and 732 ATMs in 122 cities to 1,412 branches and 2,890 ATMs in 527 cities in India as on December 31, 2008. Additionally the Bank has a branch in Bahrain and representative offices in the U.A.E and Kenya. During the five years, banks customer base grew from 3.40 million customers to over 17 million customers. As with time the HDFC bank expanded its geographical reach and market penetration, with this the banks assets also increased, and it grew from Rs. 30,424 crore as of March 31, 2003 to Rs. 183,185 crore as of December 31, 2008. The net income also recorded an increase from Rs. 388 crore for the fiscal year 2003 to Rs. 1,590 crore for the fiscal year 2008 at a compounded annual growth rate of 32.60%. Notwithstanding the pace of growth, the bank has maintained a strong balance sheet and a low cost of funds. As of December 31, 2008 net non-performing assets constituted 0.6% of net advances. The average non-interest bearing current accounts and low-interest savings accounts represented 51.70% of total deposits for fiscal 2008. These low-cost deposits, which include the cash float associated with banks transactional services, led to an average cost of funds including equity for fiscal 2008 of 4.10%. HDFC bank is a part of the HDFC group of companies founded by our principal shareholder, Housing Development Finance Corporation Limited (HDFC Limited), which is a public limited company established under the laws of India. HDFC Limited and its subsidiaries owned 19.38% of banks outstanding equity shares as of February 06, 2009. The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial Services

Limited (HDBFS). HSL is primarily in the business of providing brokerage services through the internet and other channels. HDBFS is a non-deposit taking non-bank finance company (NBFC), for the establishment of which the Bank received Reserve Bank of India (RBI) approval during the fiscal year 2008. HDFC bank is a commercial bank of India, promoted by the housing development finance corporation, a premier housing finance company of India. The company headquarters are situated in Mumbai and has around all the branches in 528 cities which are all linked on an online real- time basis. HDFC bank is a type of public company and was founded by Mr. Deepak Parekh. The bank has approximately total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2, 244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09. The chairman of HDFC is Mr. Jagdish capoor and Mr. Aditya Puri serves as the company managing director. They have been responsible for making the company peoples company with their efforts. The company revenue in 2009 Rs. 197.5 billion and its profit has been Rs. 2.24 billion. The company now has total assets of Rs. 1.8 trillion and has 52,687 employees currently working with HDFC. The bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

Acquisitions and Mergers

In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. 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. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with 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 is 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. The mergers can be termed as a quest for growth in the Indian banking environment.

Board committees
The Board has constituted committees of Directors to take informed decisions in the best interest of the Bank. These committees monitor the activities falling within their terms of reference. Various committees of the Board were reconstituted during the year due to induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are as follows: The Board's Committees are as follows: Audit and Compliance Committee Compensation Committee Investors' Grievance (SHARE) Committee Risk Monitoring Committee Credit Approval Committee The Premises Committee Nomination Committee Fraud Monitoring Committee

Compensation Committee
The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract, retain and motivate employees, consider grant of stock options to employees, reviewing compensation levels of the Bank's employees vis--vis other banks and industry in general. The Bank's compensation policy is to provide a fair and consistent basis for motivating and rewarding employees appropriately according to their job / role size, performance, contribution, skill and competence. The Committee met 3 (three) times during the year.

The Premises Committee

The Premises Committee approves purchases and leasing of premises for the use of Bank's branches, back offices, ATMs and residence of executives in accordance with the

guidelines laid down by the Board. The Committee is chaired by Mrs. Renu Karnad. The Committee met 4 (four) times during the year.

Fraud Monitoring Committee

Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud Monitoring Committee, exclusively dedicated to the monitoring and following up of cases of fraud amounting to Rs.1 crore and above. The objective of this Committee is the effective detection of frauds and immediate reporting thereof to regulatory and enforcement agencies and actions taken against the perpetrators of frauds.

Customer Service Committee

Committee monitors the quality of services rendered to the customers and also ensures implementation of directives received from RBI in this regard. The terms of reference of the Committee are to formulate comprehensive deposit policy incorporating the issues arising out of death of a depositor for operations of his account, the product approval process, and the annual survey of depositor satisfaction and the triennial audit of such services. The Committee met 4 (four) times during the year.

Corporate governance
HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.

Code of corporate governance

The Bank believes in adopting and adhering to best recognized corporate governance practices and continuously benchmarking itself against each such practice. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. The Bank believes that best board practices, transparent disclosures and shareholder empowerment are necessary for creating shareholder value. The Bank has infused the philosophy of corporate governance into all its activities. The philosophy on corporate governance is an important tool for shareholder protection and maximization of their long term values. The cardinal principles such as independence,

accountability, responsibility, transparency, fair and timely disclosures, credibility etc. serve as the means for implementing the philosophy of corporate governance in letter and spirit.

Progress
The Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees. HDFC Bank has demonstrated very consistent delivery of performance over the last so many years and has already notched up its place as the one of the largest private sector bank in the country and the growth momentum is expected to continue. The bank has stepped up to retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million (approx). Not only the retail banking of HDFC is blooming day by day but its services offered in wholesale banking has also given tremendous growth to the bank. The online banking system i.e. net banking has been an eye attraction for the customers as it gives them fast and convenient banking. As already mentioned about its growing distribution network the bank is continually planning for expansion of the branches of the bank. Customers are efficiently serviced through telephone banking also. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the

centers where the NSE/BSE has a strong and active member base. With the excellent distribution network HDFC aspires to have as strong position in the market and with the customers. HDFC bank has always aspired to become a world class bank and has been trying to adopt an efficient and effective approach to understand the ever changing customer demands and to offer them superior service. HDFC thus has been marketing itself with the tagline saying we understand your world. Now if one observes the revenue earned by HDFC during last year than it can be said that revenue growth was driven principally by an increase in net income. The other income (non interest revenue) increased primarily due to fees and commissions, profit/ (loss) on revaluation / sale of investment and income from foreign exchange and derivates income. Operating (non-interest) expenses increased due to higher infrastructure and staffing expenses in relation to the expansion in the branch network, and growth in the retail loan and credit card businesses.

net revenuebreak downF Y09

treasury and other operating incom e 4% forexincom e 9%

fee incom e 18%

net incom e 69%

Figure- HDFC bank revenue breakdown

Awards and achievements

HDFC has earned several awards for its growth and progressive services offered to the customers. A few are listed below: Corporate best bank award Dun and Bradstreet American Express corporate best bank award 2007 Best Bank Award in the private sector category- outlook money and NDTV profit Best Retail Bank in India The Asian banker excellence in retail financial services awards. Euromoney Awards 2009 -'Best Bank in India' Economic Times Brand Equity & Nielsen Research annual survey 2009 Most Trusted Brand - Runner Up

Asia Money 2009 Awards - 'Best Domestic Bank in India' IBA Banking Technology Awards 2009-'Best IT Governance Award - Runner up'
Global Finance Award -'Best Trade Finance Bank in India for 2009

COMPETITIVE ANALYSIS
ICICI bank
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has

established branches in Belgium and Germany. The bank has a presence in around 18 countries across the globe. They offer a wide gamut of retail products to its retail customers and as well as other banking products related to the corporate segment. These include ICICI personal loan, ICICI home loan, ICICI car loan, ICICI credit cards, ICICI LAP etc. They also offer financial services that span asset management, venture capital, investment banking, life and non-life insurance. ICICI equity shares find a place in the Bombay Stock Exchange and National Stock Exchange in India with its American depositary receipts listed in the New York Stock Exchange. ICICI Bank is one of the most popular banks in recent times with its presence felt through a huge network of 1,495 branches and 4,816 ATMs across the country, with profits running into 8.8 billion in the quarter ended June 2009. The bank also has a presence in around 18 countries across the globe. They offer a wide gamut of retail products to its retail customers and as well as other banking products related to the corporate segment.

Milestones
In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Merger of ICICI Bank with Bank of Madura Limited in fiscal 2001 and 2002. In October 2001, ICICI Personal Financial Services and ICICI Capital Services wholly owned by ICICI Limited were allowed to be merged with ICICI Bank, which was formally approved by the RBI in April 2002. K.V. Kamath is the Chairman of the ICICI group. Chanda D. Kochhar, the Managing Director & CEO of ICICI Bank was recently named in Forbes list of the Worlds 100 Most Powerful Women and ranked in the top 20 of the list compiled by Forbes, sharing the honor with Sonia Gandhi, Congress President who ranked 13th.

ICICI bank retail products Accounts and deposits Savings account

ICICI bank savings account offers the customers following features: Debit-cum-ATM Card Money Multiplier Facility Internet Banking Customer Care Mobile Banking Standing Instructions Nomination facility DD Call and Collect

Debit-cum-ATM Card - With ICICI Bank Savings Account the customers will get a debit card that one can use to withdraw cash from any ATM. Customers may also use their debit card to directly make purchases through a Visa/MasterCard POS (Point of Sale) machine available at most stores, according to the bank this will help customers access their money from anywhere. The ICICI Bank International debit card is a debitcum-ATM card providing customers with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs. If the customers want to withdraw cash from their ICICI Bank Savings account, they can walk into any bank's ATM and use their ICICI Bank ATM-cum-Debit card for free. The above benefit is available free of cost for the first 5 transaction per month upto Rs 10,000 per transaction. Money Multiplier Facility-The Money Multiplier feature gives customer the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to customers Savings Account providing them the following facilities.

Maximum returns According to the bank the customers money is never idle. Creation of a linked FD ensures higher rate of interest on their Savings Bank Deposits. One can issue instructions through any channel such as the ICICI Bank Branch, ICICI Bank Phone Banking and ICICI Bank's Internet Banking for creation of Fixed Deposit(s) from the surplus funds in your Savings Bank Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be created in multiples of Rs. 5,000 for tenure of one year or more as instructed by the customer.

Maximum Liquidity The customers can withdraw the funds from their savings account through any channel such as the ICICI Bank ATM, ICICI Bank Internet Banking or by issuing a cheque etc. All linked Fixed Deposits will be enabled for automatic Reverse Sweep in multiples of Rs. 5000 on a Last-In-First-Out (LIFO) basis when the balance in the Savings Account falls below Rs.10, 000. The amount reverse swept will earn interest rates at the applicable rate for the period that the deposit was held with the Bank. The remaining amount will continue to earn higher interest at the original rate applicable to the fixed deposit.

Auto Renewal - Under this facility, when their deposits fall due, the bank will automatically renew the principal and accrued interest for the same tenure as the original deposit.

Internet Banking-For internet banking the customers need to log in with their user ID and password and make banking a hassle-free routine. It is offered free of cost. Customer Care The bank has 24-hour Customer Care service always available to answer any query or take their instructions. Mobile Banking The customers have an option of mobile banking through which they can do Transferring of funds or getting to know their balance. Standing Instructions - ICICI Bank accepts and supports Standing Instructions. According to them the customers don't have to worry about the chore of carrying out a

routine transaction. They can just set up a Standing Instruction and then the bank will manage. Nomination Facility The customers may nominate a person as beneficiary to their account proceeds. Nomination facility available for bank deposits. There can be only one Nominee for a deposit account whether held singly or jointly. A person legally empowered to operate a minor's account can file a nomination on behalf of the minor. Applicants can make nomination by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985 The nomination details can be changed during the subsistence of the account relationship by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985.

DD Call and Collect according to the bank the customers need to wait in bank to collect DD they can do so on the way to the branch, by just calling Customer Care and providing them details of the DD to be prepared and collect it ready and signed at the branch.

Salary accounts
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As an organization, one can opt for Salary Accounts to enable easy disbursements of salaries and to have access to other benefits too. According to the bank with ICICI Bank Salary Accounts employees will enjoy the convenience of having the largest network of ATMs, free 24 hour phone banking and free internet banking. What the customers would require to do is to send ICICI Bank an advice (in form of a

cheque/debit instruction, ecs, etc) for the total salary amount along with the salary details of the designated employees in a soft and hard copy format and bank will credit the respective employees' accounts as per the companys statement of advice. ICICI Bank Salary Accounts has the benefits of reduce paper work and saves remittance costs and also the employees receive instant credit of salaries. Besides all of the above, employees will automatically become ICICI Bank account holders with special benefits and privileges of 8-8 banking, Investment advisory and much more. ICICI Bank also has a special offering: Defense Banking Services designed exclusively for the armed forces.

Fixed deposits
The ICICI bank fixed deposits offer following advantages:

Wide range of tenures. Choice of investment plans. Partial withdrawal permitted. Safe custody of fixed deposit receipts. Auto renewal possible. Loan facility available.

Features
The customers can deposit any amount of money in Fixed Deposit for as long as they wish between 15 days to 10 years. All fixed deposits come with a set choice of investment plans. Fixed Rate Deposit accounts also provide Fixed Loans. Reinvestment Fixed Deposit rates do not change but works like a Recurring Debit Account transaction. In other words, Re-investment Plans are compounded over traditional deposits and hence are more lucrative over different time periods. Other features include:

Minimum Balance

 Customers can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs 10,000.

Nomination
Nomination facility available for bank deposits. There can be only one Nominee for a deposit account whether held singly or jointly. A person legally empowered to operate a minor's account can file a nomination on behalf of the minor. Applicants can make nomination by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985. The nomination details can be changed during the subsistence of the account relationship by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985. Choice of two investment plans:

Traditional
Interest payable monthly or quarterly as per your convenience Maturity period ranges from 15 days to 10 years

Reinvestment
Interest is compounded quarterly and reinvested with principal amount Maturity period ranges from 6 months to 10 years

Benefits

Fixed Deposits at ICICI Bank comes with nomination facility. The bank also offers online access to Fixed Deposits through their Internet Banking channel. Internet Banking at ICICI Bank allows customers to connect to their Credit Card, Loan and their Fixed Deposit with their savings account. In re-investment deposits, the interest is compounded quarterly and reinvested with the principal. Traditional term deposits provide tax shelter and shield you from factors affecting fixed deposits in India over longer periods of fixed time. All the facilities available with ICICI bank can be listed as follows.

Channels
ICICI Bank has the following channels through which it offers its products and services to its customers. Branches ATMs Internet Banking Mobile Banking Phone Banking

Products and services ICICI Bank offers a host of products and services to its clients, which include Deposits, Loans, Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.

Deposits
Following deposits are offered:

Savings Account Advantage Deposit

Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank@Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account People's Savings Account Self Help Group Accounts Outward Remittance Freedom Savings Account Family Banking

Loans
ICICI Bank offers following loan facilities:

Home Loans Loan Against Property Personal Loans Car Loans

Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Loan Against Gold Ornaments Pre-approved Loans

Cards
ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The various cards offered by ICICI bank are as below: Consumer Cards

Credit Cards Travel Cards Debit Cards

Commercial Cards

Corporate Cards Prepaid Cards Purchase Cards Distribution Cards Business Cards

Axis bank
Axis Bank, previously known as UTI Bank, is one of the leading Banks of India along with HDFC Bank and ICICI Bank. Established in 1994, it's the first of the new private sector banks in India to start its operations, when Government of India opened the gate for the private banks to flock into the Indian financial market. Though the bank started its operation with the name UTI Bank, but later, in order to avoid ambiguities and confusion with other discrete entities carrying the same name, it changed its name to its current

form (Axis Bank) in April 2007. Axis Bank Limited recorded a total income of Rs. 13,745.04 crore as on the year ended March 31, 2009. It also made a net profit of Rs. 1,812.93 crore in the same financial year. Axis Bank offers a range of financial products and services to its clients throughout the country. It also has special strength in retail and corporate banking. Axis Bank offers following services:

Personal Banking Corporate Banking NRI Priority Banking

Personal banking
The Personal Banking of Axis Bank includes following services:

Accounts

Zero Balance Savings Account Krishi Savings Account Easy Access Savings Account Prime Savings Account Corporate Salary Account Women's Savings Account Demat Account Senior Citizen's Account Defence salary Account Trust/NGO Savings Account RFC(D) Account Azzadi - No Frills Pension Savings Account

Deposits

Fixed Deposits Recurring Deposits Encash 24 Tax Saver Fixed Deposit

Loans

Home Loan Car Loan Personal Loan Loan Against Shares Loan Against Property Loan Against Security Study Loan Consumer Loan

Cards

Credit Cards Debit Cards Prepaid Cards

Payments

Bill Pay Electronic Clearing Service Tax Payments Tax e-Payments Direct Tax Payments

Pension Disbursement

Other Services

Mobile Refill Locker Online Shopping IPOS mart E-Statement

Credit

Large Corporate Working Capital Finance Term Loans Trade Services Structured Finance Supply Chain Management Overseas Transactions Agri Business Kisan Power Powertrac Commodity Power Contract Farming Arthia Power

SME Standard SME Fast Track Microfinance

Priority banking
Following services are offered under this category:

Accounts

Resident NRI

Deposits

Fixed Deposits Recurring Deposits Encash 24

Loans

Home Loan Personal Loan Loan Against Property Loan Against Security Car loans Consumer Power Study Power

Cards

Priority Debit Card Credit Cards Platinum Credit Card Gold Plus Credit Card Gold Credit Card Silver Credit Card

Secured Credit Card eShop Card Travel Currency Card Remittance Card Gift Card

Other Services
o o o

Mobile Refill Locker Online Shopping

24 hour banking services

Following services are offered under 24 x 7 Banking:

Internet Banking Mobile Banking Savings Account NRI Account Current Account Phone Banking Visa Money Transfer Power Transfer ATM

KOTAK MAHINDRA BANK

Kotak Mahindra is among the leading financial organization of India, with a range of financial services that caters to all customers' day to day requirements. Their products spans from commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking diverse needs of individuals and corporate are catered to. The Kotak group has a net worth of more than Rs. 6,799 crore with the branches, franchisees, representative offices and satellite offices spread across cities and towns in India. They also have global offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Kotak Group offers their services to approximately 6.4 million customers. The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. A stake in the group was taken in by industrialists Harish Mahindra and Anand Mahindra and this is the time when the company changed its name to Kotak Mahindra Finance Limited.

Kotak Group Products & Services

1. Bank 2. Credit Cards 3. Life Insurance 4. Mutual Funds 5. Car Finance 6. Securities 7. Institutional Equities 8. Investment Banking 9. International Business 10. Kotak Private Equity 11. Kotak Realty Fund 12. Wealth Management

About Kotak Mahindra Bank

The flagship company of Kotak Mahindra Group, Kotak Mahindra Finance Ltd was established in 1985. The same got converted into a bank - Kotak Mahindra Bank Ltd in March 2003. Kotak Mahindra bank has presence in commercial vehicles, retail finance, corporate banking, treasury and housing finance.

Services of Kotak Mahindra Bank Deposit Accounts

Savings account Current Account Term Deposits

Loans

Personal Loans Home Loans Loan Against Property

Investment Services

Demat Mutual Fund Insurance Gold

Convenience Banking

Net Banking Mobile Banking Phone Banking ATM Network

PUNJAB NATIONAL BANK

The Punjab National Bank or PNB is one of the well known commercial and banking institutions in India. It is the second largest government owned and regulated commercial bank in the country and offers specialized solutions and financial services in a number of sectors. Around 37 million customers are served by the bank on an average basis. The customized facilities and services make it a trusted name in the domain of banking.

Growth of Punjab National Bank

Punjab National Bank was registered under the Indian Companies Act on 19 May in the year 1894 and its first office was set up at Anarkali Bazaar in Lahore. Since then, the bank has become a great name in the field of banking and is very much preferred by the customers for the wide range of its services. Today, the bank has around 4,904 branches in around 764 cities. Due to its facilities and services of high standards, Punjab National Bank has also been the recipient of a number of prestigious awards. It has been adjusted as the 248th biggest bank across the globe according to a recent survey made by Bankers Almanac in London. The Economic Times has also listed the bank as 38th among the premier 500 companies and the 9th among the most trusted brands in India. The total asset value of the bank amounts to around US$60 billion. There is also a subsidiary of the

PNB in the United Kingdom. In addition the bank also has branches in some other cities like:

Kabul Honk Kong Oslo Shanghai Dubai

Services of Punjab National Bank

Punjab National Bank offers financial solutions and services in an array of sectors. All these services that are offered keep pace with the changing market trends in order to fulfill the needs and preferences of the customers. Some of the well known sectors on which the main functions of the bank are based are:

Personal Banking Corporate Banking Agriculture finance services Industrial finance services Trade financial services International banking services

PNB also has commercial relationship with more than 200 prestigious international banks across the globe. It has the provisions of Rupee Drawing Arrangements with around 15 exchange companies in the UAE and 1 in Singapore. In case of the personal banking segment, the bank offers customized solutions to take care of almost all financial needs of the customers. Some of the well known services that are offered in the bank are:

Savings Fund Account Fixed Deposit scheme Current account Loan services

Punjab National Bank is also a well known name in housing loan benefits. The bank offers both short term and long term loans. The rates are also affordable and can be paid within a particular time. The housing loans are given for a number of purposes such as:

Construction of a building Purchase of a new house or a flat Purchase of flat or house on a First Power of Attorney basis For the purpose of repair or renovation of a house or a building

The PNB Housing Finance sanctions around 80% of the cost of the project. However, the maximum amount is around Rs 50 lakh. The maximum loan amount for the purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a period between 5 and 20 years before one becomes 65 years of age. The interest of the loan is based on the reducing balance and the principal amount of the loan is also based on the repaying capability of the borrower.

Mutual funds of Punjab National Bank

The mutual funds of Punjab National Bank are covered under the Principal PNB Asset Management Company. Some of the well known schemes of mutual funds are:

Principal Growth Scheme Principal balanced Fund Principal Income Fund Principal government Securities Fund Principal Income Fund Short Term Debt Principal Cash management Fund Principal Index Fund

Table showing analysis on different parameters:S.NO PARAMETE RS HDFC BANK ICICI BANK AXIS BANK KOTAK MAHINDR PUNJAB AND

A BANK 1. BRANCHES 1412 (INDIA) 141(DELHI ) 2. ATMs 2009 (INDIA) 109 ( Delhi) 5219 (INDIA) 3. CHEQUE DEPOSIT 4. BOX EASY INTERNET 5. BANKING AVERAGE QUARTERLY BALANCE SAVINGS ACCOUNT VALUE ADDED SAVINGS Rs.10,000 (URBAN /METRO) Rs. 5,000 (SEMI URBAN) SAVINGS MAX ACCOUNT Rs. 25,000 Rs. 10,000 /METRO) Rs. 5000 (SEMI URBAN) ZERO BALANCERs.5,500 EASY ACCESSRs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural ACE: Rs.50,000 PRO: Rs.20,000 EDGE: RS.10,000 YES YES YES YES YES YES 1700+ (INDIA) 78(DELHI) 4055 (INDIA) YES 245 (INDIA) 66(DELHI) 117approx. (INDIA) YES

NATIONA L BANK 3850(INDI A) 213(DELH I)

YES

YES

PNB PRIDENT SWEEPRs.10,000 (URBAN /METRO) Rs. 5,000 (SEMI URBAN) TOTAL FREEDO M

REGULAR- (URBAN

SENIOR CITIZENS Rs. 5000 NO FRILLSNIL KIDS ADVANTA GE ACCOUNT Rs. 5000 SUPER SAVINGS ACCOUNT 6. RATE APPLICABLE ON SAVINGS ACCOUNT 7. 8. Rs. 25000 Saving A/c 3.50% on regular savings account Saving A/c 3.50% and interest paid Half Yearly yes Free Quarter yes

centers. PRIME SAVINGS ACCOUNTRs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches)

SAVINGS FUND SALARY ACCOUN TRs. 0

3.50% and interest paid Quarterly on easy access account yes Free Quarter yes

3.50% 3.5% pa

Gold debit card Yes Statement Free Quarter charges 24 hour phone banking Yes

Yes Free Quarter Yes

Yes Free monthly Yes

9.

The following list of the fixed deposits that was created by interacting with the customers as what they prefer most of the listed banks. The customers said that they are not aware about the FDs of Kotak Mahindra bank and dont mind Punjab national bank as they trust the bank with all of its products. The comparison is made on the basis of what customers think was beneficial.

FIXED DEPOSITS Account name Fixed Deposit Regular Fixed Deposit Fixed Deposit Bank Name ICICI BANK HDFC BANK AXIS BANK Type of account FIXED DEPOSITS FIXED DEPOSITS FIXED DEPOSITS 2.50% RS. 10,000 QUARTERLY 8.75% RS. 10,000 QUARTERLY Rate 9.5% Minimum Interest paid balance/deposits Rs.10,000 QUARTERLY

ANALYSIS
When discussed with customers regarding their preference for the various Private Banks the analysis from that was that ICICI Bank and HDFC are the two leading private banks of the city. This is mainly because. These two banks are the first private banks which has opened their branches in the city. ICICI and HDFC brands name, play an important part in their success in the city because people usually go through the name the company. The difference lies within the few parameters that seem to differ with in the banking structure of different banks especially public sector bank i.e. Punjab national bank and private sector banks i.e. HDFC, ICICI, AXIS and KOTAK MAHINRDA bank. If one closely observes there is not major difference between the services offered in these banks what differs is their banking culture and how they offer their services. The factors which distinguish are Business process re-engineering

Proper and timely management of changes Large number of transactions and changes Internal commitment Availability of adequate finance Strategic Human Resources changes PSU banks which are a dominating force in the Indian banking system have lacked a proactive HR environment. However, much has changed with the opening of other sectors and increased competition from newer banks in the system. So Punjab national bank has undergone a drastic change with in time and has been giving a serious competition to HDFC bank. There is a realization that skill development is extremely important for staff retention as well as the quality of manpower, and all banks whether HDFC or any other bank had in place a system of continuous professional learning. A few banks like Kotak Mahindra are time and again in the process of revamping their training processes and their emphasis is being laid on hard as well as soft skills. Banks are keen to tie up with external training agencies for in-house training. Now if one look at the retail products offered at different banks then the savings account facility offered at Punjab national bank finds more takers in the middle level earning group of people like for example the total freedom savings account of PNB where there is no need to maintain an average quarterly balance and even the fees that is deducted for other accounts where the customers are not able to maintain average balance is much less than HDFC, ICICI, AXIS and KOTAK MAHINDRA bank. Kotak Mahindra bank seems to target customers of higher league as they dont have many branches in Delhi as compared to HDFC, ICICI, and AXIS bank. They have their own exclusive class of customers and they market their products like that only. The current and savings account of Kotak Mahindra bank is marketed with terms like the power to have an exclusive banking service. Now HDFC bank has a very special way of treating its customers by giving them the

convenience of imperia customer programme, classic customer programme and preferred customer programme. This helps the banks in attracting more and more customers for the retail products. This is referred as priority banking. The plus current account of HDFC bank is preferred more by the customers the minimum balance required to be paid is RS. 1, 00,000 and the interest paid are nil. Punjab national bank actually has been able to develop a more trustworthy relation with the customers since its a public bank and does not charge much for not maintaining AQB. HDFC bank has been a leader clearly among the private banks and has its own strong and loyal customer base ICICI bank has been giving a close competition to HDFC bank as told by the customers. After the customers were contacted Bank FD emerges out to be the most preferred option for the clients to invest in the market after real estate. This is also dependant on various reasons which are given as under: o Easy loans available against the Bank Fixed Deposits. o Clients can withdraw their money at almost any time giving them the option of maintaining Liquidity. o With all this Bank FD also provides a decent return concerned the minimum of the risk in any of the available investment instruments. o We have seen above in the analysis of nationalized vs. private banks that nationalized banks are the more preferred ones, this also adds weight to clients preferring Bank FDs due to trust build during all these years. Then, next preferred option for the clients is Unit link plan/Insurance. Another thing that was noted were that majority of clients preferred the short term fixed deposits as their favorite option. Most of the clients use the ideal money which they have to meet the uncertainty or short term requirement. Now if we talk about insurances the preference of the people who had invested in the insurance sector, it is very clear that LIC is the leading company in this field, because of many factors such as:-.

LIC is leading in this field mainly, because it is the first mover in the insurance sector and thereby had captured most of the market.

LIC had a very good network of agents, who can be seen as the back bone of the company.

LIC had provided better service in the past which had made trust in the mind of the people and for that reason they feel more comfortable.

HDFC and ICICI are the second in this field mainly because they had opened their branches recently but have made progress in capturing a significant share of the market and in the future the ratio is decrease, because there are many

opportunity to cash in by both the company . The features that distinguish HDFC bank from other banks, according to the customers are:1. The customers feel that services across different branches of the HDFC bank differs since they have different branches for various departments for example Dwarka sector 22 which deals with visa services because of this the customer have an advantage of convenience banking 2. Customers having long relationship with bank rely a lot on the investment services and advices offered by the bank since bank through one or the other way try to give some benefits to such customers, the bank named them as classic customers. 3. Customers call HDFC bank as friendly and reliable bank because of its CRM services 4. HDFC bank is also regarded as a leader in deploying technology in its services which makes it different from other banks.

5. HDFC bank has become relatively large especially by the virtue of introducing various schemes for the benefits of the customer. 6. HDFC bank has created a brand equity that reflects trust and integrity. 7. HDFC bank has also targeted kids by opening accounts for them and by introducing kids advantage plan under mutual funds. Due to these efforts of HDFC bank lots of kids have become loyal customers of HDFC already. 8. HDFC bank has positioned itself more than just bank. It is already perceived as comprehensive financial supermarket. According to the customers they have created a virtual market place on the net. 9. HDFC bank ATM services have been considered remarkable by the customers. The bank tries to handles the complaints it receives regarding ATMs and DEBIT card as efficiently and effectively as possible. This is because one will find maximum takers of HDFC banks ATM cards. 10. In a nutshell what differentiates HDFC bank is the ability to add- value, the global image and the personality of the bank i.e. being dynamic, innovative and vibrant .

FINDINGS Sales Staff differ in their information and Telephone Calling by the HDFC bank, ICICI bank and ICICI prudential and HDFC standard life Advisors are disturbing the clientsThere is excess calling by the employee of the HDFC and ICICI banks and by the Advisors of insurance, and this is one of the reasons why they are not interested in the

bank sometimes, and the other reason is that most of the time the sales staff does not give what they promise, their information generally differs from the bankers in the bank this create a bad impression about the company. In the banking sector Punjab national bank is the bank many customers prefer PNB is the most preferred bank because of its brand equity and also because it has an old and loyal customer which has proved to be a great advantage.. There are several things which favor them including: The companys image in the mind of the people The companys successful track record in providing life long services to its customers A very good agent base Excellent relationship with clients

A large Part of the Market yet to be covered by Mutual FundsLarge parts of the people do not know about the mutual funds investment and insurance and other retail products schemes but they have the power of Money. These clients should be cash in by the HDFC bank.