ACKNOWLEDGEMENT

I am very grateful to Mr. Manoj Kapoor (Branch Manager) HDFC Bank

Ltd. Meerut for providing me an opportunity to work in great
environment and gain a practical experience.

I express my deep gratitude to my faculty member particularly Prof.

Sunil kumar Tyagi under whose guidance and supervision project report
has been prepared. They have helped me at every level where ever
required.

I have benefited a lot from the constructive criticism and suggestions-

given to me by him.

Last but not the least; I would like to thank my institute, I.T.S Ghaziabad
and all my faculty members who have given me all the guidance and
knowledge, necessary to complete my training.

SHARADAGARWAL
 PREFACE

In today’s corporate and competitive world, I find that HDFC Bank

LTD. has the good growth and potential as compared to the other bank.
HDFC Bank LTD. has given me the opportunity to work and get
experience in a highly competitive and enhancing sector.

The success story of good market share of different banks depends

upon the availability of the product and services near to the customer.

If HDFC Bank Ltd is able to provide third party payment and ATM
facilities they can capture big market as compared to the other banks.

2
 Contents

1. Acknowledgement------------------------------1

2. Preface--------------------------------------------2

3. Introduction--------------------------------------4

4. Types of current accounts---------------------26

5. Scope of the study------------------------------43

6. Objective of the study-------------------------45

7. Limitation of the study----------------------- 47

8. Research Methodology---------------------- 49

9. Presentation & analysis of data--------------52

10. Finding of the study--------------------------621

11. SWOT analysis--------------------------------63
12. Suggestions -----------------------------------67
13. Conclusion------------------------------------70
14. Bibliography--------------------------------- 72
15. Questionnaire------------------------------- 74

3
INTRODUCTION

CHAPTER 1

4
 Industry Profile

Introduction of Bank

A bank is an institution that provides financial service, particularly

taking deposits and extending credit.

Currently the term bank is generally understood as an institution that

holds a banking license. Banking licenses are granted by bank regulatory
authorities and provide rights to conduct the most fundamental banking
services such as accepting deposits and making loans. There are also
financial institutions that provide certain banking services without
meeting the legal definition of a bank, a so called non-banking financial
company.
Banks have a long history, and have influenced economies and politics
for centuries.

The word bank is derived from the Italian word banca, which is derived from German
language and means bench. The terms bankrupt and "broke" are similarly derived
from banca rotta, which refers to an out-of-business bank, having its bench physically
broken. Money lenders in Northern Italy originally did business in open areas, or big
open rooms, with each lender working from his own bench or table.

Traditionally, a bank generates profits from transaction fees on financial

services and from the interest it charges for lending. In recent history,
with historically low interest rates limiting banks' ability to earn money

5
by lending deposited funds, much of a bank's income is provided by
overdraft fees and riskier investments.

Services typically offered by banks:

Although the type of services offered by a bank depends upon the type of
bank and the country, services provided usually include:
• Taking deposits from the general public and issuing checking and
savings accounts
• Making loans to individuals and businesses
• Cashing cheques
• Facilitating money transactions such as wire transfers and cashiers
checks
• Issuing credit cards, ATM, and debit cards
• Storing valuables, particularly in a safe deposit box

Types of Bank

Banks' activities can be characterized as retail banking, dealing direct

with individuals and small businesses, and investment banking, relating
to activities on the financial markets. Most banks are profit-making,
private enterprises.

However, some are owned by the Government, or are non-profit making

In some jurisdictions retail and investment activities are, or have been,
separated by law.

6
Central banks are non-commercial bodies or government agencies often
charged with controlling interest rates and money supply across the whole
economy. They act as Lender of last resort in event of a crisis.

Current scenario
Currently (2006), overall banking in India is considered as fairly mature
in terms of supply, product range and reach- even though reach in rural
India still remains a challenge for the private sector and foreign banks.
Even in terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets-as
compared to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure
from the government. The stated policy of the Bank on the Indian Rupee
is to manage volatility-without any stated exchange rate-and this has
mostly been true.
With the growth in the Indian economy expected to be strong for quite
some time-especially in its services sector, the demand for banking
services-especially retail banking, mortgages and investment services are
expected to be strong.
M&As, takeovers, asset sales and much more action (as it is unravelling
in China) will happen on this front in India.
Recently (March 2006), the Reserve Bank of India allowed Warburg
Pincus to increase its stake in Kotak Mahindra Bank (a private sector
bank) to 10%. This is the first time an investor has been allowed to hold
more than 5% in a private sector bank since the RBI announced norms in
2005 that any
stake exceeding 5% in the private sector banks would need to be vetted
by them.

7
Banking Sector

The world of banking has assumed a new dimension at the dawn of

the 21st century with the advent of tech banking, thereby lending the
industry a stamp of universality. In general, banking may be classified as
retail and corporate banking. Retail banking, which is designed to meet
the requirements of individual customers and encourage their savings,
includes payment of utility bills, consumer loans, credit cards, checking
account balances, ATMs, transferring funds between accounts and the
like. Corporate banking, on the other hand, caters to the needs of
corporate customers like bills discounting, opening letters of credit and
managing cash.

The Indian banking scene has changed drastically with the private
sector making inroads in an area hitherto dominated by large public
sector banks. Growing disinvestments is likely to impact the banking
industry as well. There is every possibility of privatization of public
sector banks, leading to greater operational autonomy.
The development of the Indian banking sector has been
accompanied by the introduction of new norms such as Income
Recognition and Capital Adequacy, by the government. The latter implies
that banks can lend on the basis of their respective capital base. These
norms have caused banks to construct equity on their own, before going
in for debt. Disinter mediation is a real threat for banks. Of late, banks are
adopting the EVA (Economic Value Added) concept wherein revenues
are viewed in the context of the risk associated with them.

The new world order has ensured "Survival of the Fittest". New
services are the order of the day, in order to stay ahead in the rat race.

8
 Banks are now foraying into net banking, securities, consumer
finance, housing finance, treasury market, merchant banking and
insurance.

Industry Highlights:

{1} Western region is the leader in bank credit (Rs.61, 980 crores) as well
as deposits (Rs.101, 421 crores).
{2} RBI is on an interest-cutting spree, trying to promote cheap
borrowing in India.
{3} Banks are diversifying into non-traditional operational areas.
{4} Disinvestments and Disinter mediation are likely to impact the
industry greatly.
{5} With an improvement in the Indian economy, new private banks are
likely to gain from better credit off-take, greater profitability and lesser
problems of NPAs.
{6} Multiple channels (ATM, phone, mobile branch and the Net) are
becoming the order of the day. With banks becoming increasingly tech-
savvy, first-move advantage is very vital.
{7} Strategic ventures and revenue-sharing alliances hold the key for
survival and growth.

9
 Structure of the organized banking sector India

Private Sector Blooms:

10
 Corporate governance and self-regulation are the ground rules for
the private sector. Government interference is not preferred. While some
private banks such as ING Vysya Bank, ICICI Bank, UTI Bank and IDBI
Bank have financial institutions backing them, others are opting for
foreign partnerships for technology and monetary resources.

Private banks have emerged relatively strong, with about 60%

growth reported in net profits in the year ended March 2000. With a net
profit of Rs.120 crores (+46%), HDFC was the clear leader. IDBI Bank,
however took the cake by doubling its net profit, which reached Rs.60.99
crores in March 2000.The jump in profits can mainly be attributed to non-
traditional sectors such as commission, exchange, brokerage, and profit
on sale of investments.
The Indian banking industry, which has Reserve Bank of India as
its regulatory authority, is a mix of the public sector, private sector, and
foreign banks. The private sector banks are again split into old banks and
new banks.

Scheduled Banks:
Scheduled commercial banks are those that come under the
purview of the Second Schedule of Reserve Bank of India (RBI) Act,
1934. The banks that are included under this schedule are those that
satisfy the criteria laid down vide section 42 (60 of the Act). Some co-
operative banks come under the category of scheduled commercial banks
though not all co-operative banks.

11
Public Sector Banks:
Public sector banks are those in which the Government of India or
the RBI is a majority shareholder. These banks include the State Bank of
India (SBI) and its subsidiaries, other nationalized banks, and Regional
Rural Banks (RRBs). Over 70% of the aggregate branches in India are
those of the public sector banks. Some of the leading banks in this
segment include Allahabad Bank, Canara Bank, Bank of Maharashtra,
Central Bank of India, Indian Overseas Bank, State Bank of India, State
Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of
Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce,
UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.

Private Sector Banks:

Private Banks are essentially comprised of two types: the old and
the new. The old private sector banks comprise those, which were
operating before Banking Nationalization Act was passed in 1969. On
account of their small size, and regional operations, these banks were not
nationalized. These banks face intense rivalry from the new private banks
and the foreign banks. The banks that are included in this segment
include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat
Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord
Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi
Bank Ltd., The Federal Bank Ltd., The Jammu & Kashmir Bank Ltd.,
The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The
Nedungadi Bank Ltd. and Vysya Bank. The new private sector banks
were established when the Banking Regulation Act was amended in
1993. Financial institutions promoted several of these banks. After the

12
initial licenses, the RBI has granted no more licenses. These banks are
gearing up to face the foreign banks by focusing on service and
technology. Currently, these banks are on an expansion spree, spreading
into semi-urban areas and satellite towns. The leading banks that are
included in this segment include Bank of Punjab Ltd., Centurion Bank
Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking
Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank
Ltd.

Foreign Banks:
The operations of foreign banks, though similar to that of other
commercial Indian banks, are mainly confined to metropolitan areas.
Foray of foreign banks depends on reciprocity, economic and political
bilateral relations. An inter-departmental committee has been set up to
endorse applications for entry and expansion. Foreign banks, in the wake
of the liberalization era, are looking to expand and diversify. Some of the
leading foreign banks that operate in India are Citibank, Standard
Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation,
Bank of America, Deutsche Bank, Development Bank of Singapore and
Banque National De Paris.

13
 Company Profile

About us

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector, as part of the
RBI's liberalization of the Indian Banking Industry in 1994. The bank
was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

Promoter

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since
its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain the market leader in mortgages.
Its outstanding loan portfolio covers well over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique
consumer franchise, HDFC was ideally positioned to promote a bank in
the Indian environment.

14
Business Focus

HDFC Bank's mission is to be a World-Class Indian Bank. The objective

is to build sound customer franchises across distinct businesses so as to
be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's
business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

Capital Structure

The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion).

The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group
holds 22.1% of the bank's equity and about 19.4% of the equity is held by
the ADS Depository (in respect of the bank's American Depository
Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign
Institutional Investors (FIIs) and the bank has about 190,000
shareholders. The shares are listed on the The Stock Exchange, Mumbai
and the National Stock Exchange. The bank's American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the
symbol "HDB".

15
Distribution Network

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

enviable network of over 761 branches spread over 327 cities across
India. All branches are linked on an online real-time basis. Customers in
over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in
all major industrial and commercial centres where its corporate customers
are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres
where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1977 networked ATMs
across these cities. Moreover, HDFC Bank's ATM network can be
accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.

16
 OUR TEAM

Mr. Kapoor was a Deputy Governor of the Reserve Bank of India.

Jagdish Kapoor Chairman

Aditya Puri Managing Director

Renu karnad Director

Amla Samanta Director

Anil Ahuja Director

Arvind Pandey Director

Vineet Jain Additional Director

Sanjay B Dongre Co. Secretary

17
HDFC Bank began operations in 1995 with a simple mission: to be a
"World-class Indian Bank". We realised that only a single- minded
focus on product quality and service excellence would help us get there.
Today, we are proud to say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer

convenience have been appreciated both nationally and internationally.

Awards and Achievements - Banking Services

Leading Indian business magazine Business India named us

"India's Best Bank" in 2000.
The Economic Times Awards for Corporate Excellence as the Emerging
Company of the Year 2000-01

"Computerworld Honors Laureate" and awarded the 21st Century

Achievement Award in 2002 for Finance, Insurance & Real Estate
category by Computerworld, Inc., USA.
Asiamoney magazine has named us "Best Commercial Bank in India
2002".

18
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

2006

Business Today Best Bank in India.

Forbes One of Asia Pacific's Best 50 companies.
Magazine
Businessworld Best listed Bank of India.
The Asset Best Domestic Bank.
Magazine's
Triple A
Country Awards
Asiamoney Best Local Cash Management Bank in Large and
Awards Medium segments.
Euromoney "Best Bank" in India.
Awards

2007

Business Today- One of India's "Most Innovative Companies"

19
Monitor Group
survey
Financial Best Bank Award in the Private Sector category
Express-Ernst
& Young
Award
Global HR 'Employer Brand of the Year 2007 -2008' Award -
Excellence First Runner up, & many more
Awards - Asia
Pacific HRM
Congress:
Business Today 'Best Bank' Award
Dun & 'Corporate Best Bank' Award
Bradstreet –
American
Express
Corporate Best
Bank Award
2007
The Bombay 'Best Corporate Social Responsibility Practice'
Stock Exchange Award
and Nasscom
Foundation's
Business for
Social
Responsibility
Awards 2007
Outlook Money Best Bank Award in the Private sector category.
& NDTV Profit

20
The Asian Best Retail Bank in India
Banker
Excellence in
Retail Financial
Services
Awards
Asian Banker Our Managing Director Aditya Puri wins the
Leadership Achievement Award for India

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.

MISSION & STRATEGY

Is to be a, “World Class Bank” - Benchmarking themselves against

international standards and best practices in term of product offerings,
technology, service level, risk management and audit and compliance.

The business strategy emphasizes the following:

21
 1. Increase the market share in India’s expanding banking industry.
2. Maintain current high standards for assets quality through
disciplined credit risk management.
3. Focus on high earnings growth with low volatility.
4. Continue to develop products and services that reduce their cost of
funds.

Corporate Governance

22
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.

What is Current account?

• A running account supporting unlimited withdrawals and deposits

• A current account is meant for convenience and not to save money

Who needs a Current Account?

23
 • Businessman
• Joint stock companies
• Institutions
• Public authorities
• Public corporations
• Any business that has numerous banking transactions need a
current
account

Benefits of Current Account

• Unlimited Withdrawal and Deposit

• Unlimited Cheque book
• Demand Drafts and Pay orders
• Funds Transfer (Local or Anywhere)
• Collection of Cheque Drafts
• Statements, Advices, Daily statement bye-mail
• Cash withdrawal and Deposits
• MultiCity Cheque Facility
• Anywhere Banking
• Cash Cheque Pickup
• Free Phone Banking
• Free Mobile Banking

24
25
 TYPES OF

CURRENT

ACCOUNTS

Types of Current accounts offered by HDFC BANK

The HDFC Bank provides different kind of account with different

features to choose the account which suited you and your business these
accounts are:

26
1.

In today's fast-paced world, your business regularly requires you to

receive and send funds to various cities in the country. HDFC Bank Plus
Current Account gives you the power of inter-city banking with a single
account and access to more than 327 cities.

From special cheques that get treated at par with local ones in any city
where we have a branch, faster collection of outstation cheques (payable
at branch locations), free account to account funds transfer between
HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per
month, our priority services have become the benchmark for banking
efficiency.

Plus Current Account requires you to maintain an average quarterly

balance of Rs. 100,000.

Features & Benefits

27
 Free Account to account funds transfer between HDFC Bank accounts
Free payment and collection through RTGS.
Free payment and collection using NEFT (through Netbanking)
Free up to 50 Demand Drafts per month and can be issued from any
HDFC Bank Branch

Free up to 50 Pay Orders (PO) per month and can be issued from any
HDFC Bank Branch.

Free anywhere collection & payment transactions (clearing) within

HDFC Bank branch network (except Dahej), up to Rs.100 lacs per month.

Convenience to withdraw & deposit cash at all our branches*

300 "At Par" cheque leaves free per month.
Register for Insta Alert service and receive updates on your account as
and when the select transaction happens - all this without visiting the
branch or ATM!

HDFC Bank offers you Doorstep Banking*, a channel, which is

convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the
services like Cash & Cheque Pickup and Cash Delivery, through a
reputed agency.

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile
Banking that helps you check your balance & transaction details, find out
the status of your cheque or stop cheque payment.

Eligibility & Documentation

Resident Individuals.
Hindu Undivided Families.

28
 Sole Proprietorship Firms.
Partnership firms.
Limited companies.
Trust Accounts.
Association/ Clubs/ Societies.
Foreign Institutional Investors.
Foreign nationals residing in India.

All you need is to maintain an average balance of Rs. 1,00,000/- per

quarter. (Non-maintenance of which entails a charge as per the
following:)
When the AQB is less than 1 lakh and upto Rs.50,000/-, there is a service
charge of Rs.1,500/- per quarter.
When the is AQB less than Rs.50,000/-, there is a service charge of
Rs.6,000/- per quarter

2.

29
In today's changing business requirements, you need to transfer funds
across cities, and time is of the essence. HDFC Bank Trade Current
Account gives you the power of inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city
where we have a branch, to free account to account funds transfer
between HDFC Bank accounts, to free inter-city clearing of up to 50
lakhs per month, our priority services have become the benchmark for
banking efficiency. Trade Current Account requires you to maintain an
average quarterly balance of Rs.40,000.

Features & Benefits

Free Account to account funds transfer between HDFC Bank accounts.

Free RTGS/NEFT Transactions.
Free up to 30 Demand Drafts (DD) per month and can be issued from
any HDFC Bank Branch.
Free up to 30 Pay Orders (PO) per month and can be issued from any
HDFC Bank Branch.
Free anywhere collection & payment within HDFC Bank branch

30
 network (except Dahej), up to Rs.50 lacs per month.
Convenience to withdraw & deposit cash at all our branches*
200 "At Par" cheque leaves per free month .
Register for InstaAlert service and receive updates on your account as
and when the select transaction happens - all this without visiting the
branch or ATM!
HDFC Bank offers you Doorstep Banking*, a channel, which is
convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the
services like Cash & Cheque Pickup and Cash Delivery, through a
reputed agency.
Enjoy facilities like 24-hour PhoneBanking, NetBanking and
MobileBanking that helps you check your balance & transaction
details, find out the status of your cheque or stop cheque payment.

Eligibility & Documentation

Resident Individuals.
Hindu Undivided Families.
Sole Proprietorship Firms.
Partnership firms.
Limited companies.
Trust Accounts.
Association/ Clubs/ Societies.
Foreign Institutional Investors.
Foreign nationals residing in India.

31
A minimum Average Quarterly Balance of Rs. 40,000/- is required to
operate this account. Non-maintenance of the minimum balance entails a
fee of Rs. 1200/-.

3.

Your business needs a partner who can manage your finances while you
concentrate on growing your business.

You can avail benefits of inter-city banking account with Premium

Current Account, that requires an average quarterly balance of only Rs.
25,000, offers Payable-At-Par cheque book facility & FREE inter-city

32
clearing transactions across our network up to Rs.25 Lacs per month.

A Current Account with the benefits of accessing your account from a

large network of branches, and through direct access channels - the
phone, mobile, Internet and through the ATM.

Enter into a profitable relationship and access all the privileges flowing
your way.

Features & Benefits

Free anywhere collection & payment within HDFC Bank branch

network (except Dahej), up to Rs.25 lacs per month, incremental
amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/-
Free NEFT Transactions.
Free RTGS collection. RTGS payment @ Rs.100/- per transaction.
Inter-city Account to accounts funds transfer between HDFC Bank
accounts at a nominal charge of Rs.15/- per transactions.
Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to
Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to
Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any
HDFC Bank Branch .
Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/-
at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at

33
 nominal cost of Rs.25/- and can be issued from any HDFC Bank
Branch .
100 "At Par" cheque leaves free per month
Register for Insta Alert service and receive updates on your account as
and when the select transaction happens - all this without visiting the
branch or ATM!
HDFC Bank offers you Doorstep Banking*, a channel, which is
convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the
services like Cash & Cheque Pickup and Cash Delivery, through a
reputed agency.
Enjoy facilities like 24-hour PhoneBanking, NetBanking and
MobileBanking to access your account.

Eligibility & Documentation

Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership firms
Limited companies
Trust Accounts
Association/ Clubs/ Societies
Foreign Institutional Investors
Foreign nationals residing in India

A minimum Average Quarterly Balance of Rs. 25,000/- is required to

operate this account. Non-maintenance of the minimum balance entails a
fee of Rs. 900/-.

34
4.

Current account is ideal for carrying out day-to-day business transactions.

With the HDFC Bank Regular Current Account, you can access your
account anytime, anywhere, pay using payable at par cheques or deposit
cheque at any HDFC bank branch. It also facilitates FREE NEFT
transactions & FREE RTGS collections for faster collections in your
account. Regular Current Account requires you to maintain an average
quarterly balance of only Rs. 10,000.

With a vast network of branches in cities all over the country, and access
to a multitude of ATM's, you can keep track of all your transactions
anytime.

35
Features & Benefits

Convenient inter-city banking :

Deposit your local cheques in one branch of a city and have it credited
to your account at a branch in another city or make payments across
HDFC Bank locations using PAP cheque facility at a nominal rate
Free payments and collections through NEFT
Free RTGS collection. RTGS payment @ Rs.100/- per transaction
Inter-city Account to accounts funds transfer between HDFC Bank
accounts at a nominal charge of Rs.15/- per transactions
Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to
Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to
Rs.100,000/- at nominal cost of Rs.25/- .
Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/-
at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at
nominal cost of Rs.25/- .
Payable at par cheque book at nominal price.
Register for InstaAlert service and receive updates on your account as
and when the select transaction happens - all this without visiting the
branch or ATM!
HDFC Bank offers you Doorstep Banking*, a channel, which is
convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the
services like Cash & Cheque Pickup and Cash Delivery, through a
reputed agency.

36
 Enjoy facilities like 24-hour PhoneBanking, NetBanking and
MobileBanking that helps you check your balance & transaction
details, find out the status of your cheque or stop cheque payment.

Eligibility & Documentation

Resident Individuals.
Hindu Undivided Families.
Sole Proprietorship Firms.
Partnership firms.
Limited companies.
Trust Accounts.
Association/ Clubs/ Societies.
Foreign Institutional Investors.
Foreign nationals residing in India.

All you need is to maintain an average balance of Rs.10,000/- per

quarter. (Non-maintenance of this balance entails a nominal charge of
Rs. 750/-).

5.

37
HDFC Bank Flexi Current Account is the answer to your changing
banking needs during peak seasons.

With HDFC Bank Flexi Current Account your Cash Deposit and
Anywhere Transaction limits are a multiple of the balance you maintain
in your Current Account.

So, during peak seasons, you get the benefit of higher transaction limits
due to the higher average balances maintained in your account.

What’s more, during lean seasons, you need not bother about maintaining
huge balances to enjoy high transaction limits, which you anyway may
not need.

Flexi Current Account requires you to maintain a minimum Average

Monthly Balance (AMB) of just Rs. 75,000.

Features & Benefits

Enjoy dynamic free limits on Intercity Payments, Collections & Funds

38
Transfer as well as Cash Deposit at home location branches based on
the AMB maintained*

For example, you maintain an AMB of Rs.2,00,000/- in a particular

month. Your dynamic free transaction limits for that month would be
as per the following table:

Transaction Dynamic Free Limits*

Rs. 24,00,000 in that
Cash Deposit at Home Branch Location
particular month
Anywhere Payments, Collections & Free up to Rs.1,00,00,000/-
Funds Transfer (except Dahej) in that particular month

Pay your vendors on a real time basis using Real Time Gross
Settlement (RTGS) available across 23,000 Bank Branches*. What’s
more, payments and collections through RTGS are completely free!
Make and receive remittances to & from your vendors & customers
across 20,000 + Bank Branches of more than 50 Banks through Net
Banking using National Electronic Fund Transfer (NEFT),
Absolutely Free!
Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC
Bank Branch*
Convenience to withdraw and deposit cash at all our branches*.
Competitive pricing on Demand Drafts drawn on Correspondent
Banking Locations as well as Outstation Cheque Collection at HDFC
Bank Locations
InstaAlert service - receive updates on your account as and when
the select transaction happens – all this without visiting the
Branch or ATM!
Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile

39
 Banking that helps you check your balance and transaction details, find
out the status of your cheque or stop cheque payment.
HDFC Bank offers you Doorstep Banking*, a channel, which is
convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the
services like Cash & Cheque Pickup and Cash Delivery, through a
reputed agency.

Eligibility & Documentation

Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership Firms
Limited Companies
Trust Accounts
Association/Clubs/Societies

40
All you need to do, is maintain an average monthly balance of
Rs.75,000/- per month. (Non-maintenance of which entails a fees of
Rs.1000/- per month)

41
 SCOPE OF THE

STUDY

CHAPTER 2

SCOPE OF THE STUDY

Market study is an essential process to develop the bank in collecting data

, analyzing , reporting of the data to specific situation to any marketing
activities that the bank facing with the increase in the competition and the
development of various marketing activities. Modern marketing calls for

42
more than developing a good product, placing it attractively and making
it accessible to target customers.

Banks also need to communicate their present and potential customers to

communicate their present organization, develop and effective strategy
with the aim of creating awareness, developing knowledge, linking
preference convictions among the organization’s target audience with a
view to convert them into prospective buyers.

This project report endeavors to study the—

Competitiveness of the HDFC BANK current account with other

bank’s current account in MEERUT.

43
 OBJECTIVE OF

THE STUDY

CHAPTER 3

OBJECTIVE OF THE STUDY

HDFC Bank's mission is to be a World Class Indian Bank .The Bank's
aim is to build a sound customer franchise across distinct businesses so as
to be the preferred provider of the banking services in the niche segments
that the bank operates in and to achieve healthy growth in profitability,
consistent with the bank's risk appetite.

44
The bank aims to ensure 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. The objective of my
study is basically confers upon the above mentioned requirement by the
bank to make it compatible with other leading banks in West Delhi on the
contrary to gain a practical exposure of the management theories in the
field of marketing with combined aim of getting the degree of PGDM.

The following are the prime objectives of my project work---

Awareness of HDFC BANK current account in Meerut

Consumer behavior while adopting HDFC BANK current account

Consumer perception about HDFC BANK current account in comparison

with other leading bank’s current account in Meerut.

45
 LIMITATION OF

THE STUDY

CHAPTER 4

LIMITATION OF THE STUDY

Almost all the necessary information was collected by me in support of

this project report.

46
However there are some problems, which cannot escape from the
limitation faced, felt or expressed by me, are as follows

• Sample size taken was small because of time boundation.

• Some of the respondents were reluctant to fill up the questionnaire

• The variety of accounts of different banks are different so there is

some problem in comparison

• The research study was limited to only one area.

• Biasness on the part of respondent

• Time and money constraints

I tried to overcome on these limitations with my best & maximum efforts

47
 RESEARCH

METHODOLOGY

CHAPTER 5

RESEARCH METHODOLOGY

TYPE:
The type of research used in this study is descriptive research. Such

48
Researches include surveys, fact finding, and enquiry methods of
different types. Descriptive research describes the state of affairs, as it
exists at present. Here researcher has no control over the variables. He
generally reports what has occurred or what may happen in future.
Descriptive Research also termed as ex post facto research. Methods of
research used in descriptive research are survey methods of all kinds.

SAMPLING:
The sampling method used is in this study is stratified random
sample. Sometimes certain customers are more important than the rest of
the customers. In such a case stratified random sampling is used. Under
this method the samples are weighted in the basis of importance of
various segments comprising the market. In other words stratified
sampling is obtained by selecting a separate simple random sample from
each population group category. Here the large population is first divided
into some groups, classes according to some feature or variable. These
groups or classes are called strata. From each strata a sample is selected
in simple random manner like group “A” sample size is 100 units, group
“B” sample size is 200 units and group “C” has sample size of 300 units
and so on and the researcher may decide to tame up 20% from each
sample size of each group. He finally selects 20 units from “A”, 40 units
from “B” and 60 units from “C” and so on. Stratified random sampling is
also known as proportional or quota sampling and basically deals with
dividing the complete population into homogeneous subgroups and then
taking a simple random sample from each subgroup.

After that a sample size was determined according to the size of the
market and sample was collected in simple random manner. A total of

49
100 samples were collected. Following is the distribution of sample
collected:

DATA COLLECTION:

Primary data was collected with the help of questionnaires.

Questionnaires play a central role in the data collection process. A will

designed questionnaire efficiently collects the required data with
minimum number of error. It facilitates the coding and capture of data
and it leads to an overall reduction in the cost and time associated with
data collection and processing.
In this study questionnaire used was comprised of both open and
closed questions. Also contingency questions were used to reduce
respondent frustration and increase the quality of information in the
responses. Secondary data was taken from the company profile and
product manual provided by the company

50
 PRESENTATION
AND ANALYSIS
OF DATA

Occupation of Respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid Businessman 37 37.0 37.0 37.0
Joint Stock
27 27.0 27.0 64.0
Companies
Professional 20 20.0 20.0 84.0

51
 others 16 16.0 16.0 100.0
Total 100 100.0 100.0

16%
37%
B u s in e s s m a n
Jo in t S to c k C o m p a n ie s
P ro fe s s io n a l
20%
o th e rs

27%

In occupation according to research 16% respondent are others , 37%

are businessmen , 27% are joint stock companies & 20% are professional

Type of account respondent maintain

Cumulative
Frequency Percent Valid Percent Percent
Valid saving A/c 20 20.0 20.0 20.0
current A/c 37 37.0 37.0 57.0
Fixed
18 18.0 18.0 75.0
Deposits
loan A/c 25 25.0 25.0 100.0
Total 100 100.0 100.0

52
 25% 20%

s aving A /c
c urrent A /c
F ix ed D epos its
loan A /c
18%
37%

20% respondent use saving a/c , 37% respondent use current a/c ,
18% fixed deposit & 25% having a loan a/c.

How many times a respondent transact in a day

Valid Cumulative
Frequency Percent Percent Percent
Valid Once a
28 28.0 28.0 28.0
day
twice in a
40 40.0 40.0 68.0
day
others 32 32.0 32.0 100.0
Total 100 100.0 100.0

53
 28%
32%

Once a day
twice in a day
others

40%

28% respondent normally transact once in a day , 40% are transact

more than twice a day or others & 32% transact twice in a day

How do they transact

Valid Cumulative
Frequency Percent Percent Percent
Valid Through ATM-
17 16.8 17.0 17.0
cum-Debit Card
Personally going
38 37.6 38.0 55.0
to Bank
through cheque 45 44.6 45.0 100.0
Total 100 99.0 100.0

54
 17%

45% Through A TM -c um -D ebit C ard

P ers onally going to B ank
through c heque
38%

17% respondent transact through ATM-cum-Debit Card, 38% transact by

personally going to bank & 45% respondent Transact through cheques.

Familiar with HDFC current account

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 78 77.2 78.0 78.0
no 22 21.8 22.0 100.0
Total 100 99.0 100.0

55
 2 2%

y es
no

78%

78% respondent familiar with HDFC current account & 22% respondent
not familiar.

Aware about five type of HDFC current a/c

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 66 66.0 66.0 66.0
no 34 34.0 34.0 100.0
Total 100 100.0 100.0

56
 34%

yes
no

66%

66% respondent are aware about five types of current a/c & 38%
are not known about this.

Which account you have

Cumulative
Frequency Percent Valid Percent Percent
Valid plus 11 11.0 11.0 11.0
flexi 13 13.0 13.0 24.0
primium 30 30.0 30.0 54.0
regular 21 21.0 21.0 75.0
trade 25 25.0 25.0 100.0
Total 100 100.0 100.0

57
 11%
25%
13%
p lu s
fle x i
p rim iu m
re g u la r
tra d e
21%
30%

Satisfied with HDFC

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 70 70.0 70.0 70.0
no 30 30.0 30.0 100.0
Total 100 100.0 100.0

58
 3 0%

y es
no

70 %

70% respondent are satisfied with HDFC Bank & 30% respondent are not
satisfied with HDFC Bank.

59
 FINDINGS OF

THE STUDY

CHAPTER 6

Findings Of The Study

• In occupation according to research 16% respondent are others

, 37% are businessmen , 27% are joint stock companies &
20% are professional

60
• 20% respondent use saving a/c , 37% respondent use current
a/c , 18% fixed deposit & 25% having a loan a/c.
• 28% respondent normally transact once in a day , 40% are
transact more than twice a day or others & 32% transact twice
in a day.
• 17% respondent transact through ATM-cum-Debit Card, 38%
transact by personally going to bank & 45% respondent
Transact through cheques.
• 78% respondent familiar with HDFC current account & 22%
respondent not familiar.
• 66% respondent are aware about five types of current a/c &
38% are not known about this.
• 70% respondent are satisfied with HDFC Bank & 30%
respondent are not satisfied with HDFC Bank.

61
 SWOT

ANALYSIS

SWOT ANALYSIS - HDFC BANK

Strengths

• Interest rate of 4% on ordinary savings account

62
 • Overdraft facility of up to 75% against fixed deposits with the
bank

• Strong sales and marketing team

• Provides foreign exchange facilities to its customers and in general

• Provides car and education loans apart from others

• In excess of 40000 accounts currently maintained with it inclusive

of

• Current accounts and fixed deposits

• Oldest private bank in India with over 7 years of presence

• Often confused to be a nationalized bank by people

Weaknesses

• No maximum upper limit for requesting a demand draft and High

minimum charges for not maintaining AQB

• Limited banking hours on weekdays and weekends

• Closure on holidays and Sunday

Opportunities

• Open up extension counters at suitable and desired locations

• Develop a bonding with customers by introducing schemes for old

63
 • Good customers and recognizing their association with the bank

• Increase the number of ATMs

Threats

• Frequent ATM disorders and excessive rush at ATMs

• Rush and chaos at the branch and delay in service mostly in the
morning hours

• Extended banking hours of Private/Multinational banks and 365

day

• Banking concept of multinational banks

• Lower interest on fixed deposits as compared to other banks

COMPARITIVE CHART OF CURRENT

ACCOUNTS OF EXISTING BANKS
Name of bank HDF
ICICI ING Vysya SBI PNB
Facilities C

64
Roaming current
YES YES YES NO NO
Account
No. Branches in India 1000 400 800 11000 4100
Free Financial
YES YES YES NO NO
Advisory Services
Free SMS Alert YES YES YES NO NO
YES YES
Anywhere Banking
YES YES YES (Only in 300 (only in 150
facility
Branches) Branches)
Multi city Payments
YES YES YES NO NO
option
Multi city cheque
YES YES YES NO NO
Books
Internet Banking! YES YES YES NO NO
Phone Banking YES YES YES YES YES
Debit Cards YES YES YES YES YES
Debit Card (Free of
YES YES YES YES YES
cost)
Free DD/ Pay order/ PAP- Cheques up to 2 crore p.m
Free usage
Any other free Free of other
Facility Insurance bank ATM NO NO NO
policy 10 times
p.m

65
 SUGGESTIONS

SUGGESTIONS & RECOMMENDATIONS

From investors point of view:--

66
  customer should ask the agents to give details of different account
schemes

 customer should invest in those schemes which meets with its

investment objective and fulfils the requirements of the customer.

 Customer should ask agents to make them aware about the

performance of their investments

From company point of view:--

 Company should educate the agents/ salesman to take customer

queries effectively

 Company should set up customer care divisions where customer

can resolve their queries any time regarding any problem.

 Company should recruit appropriate number of agents for urban,

rural and semi urban areas.

Company should make customer service faster.

 Company should choose appropriate channels of media

like newspaper, television etc for marketing of products and
services.

 Company should also conduct seminars and also provide

every minute information about the various products offered
by the company

 Company should developed, design separate schemes for

rural, urban living people.

 Company should strengthen its distribution channels and

make it more effective by and should make a strong database
about its customer.

67
68
 CONCLUSION

CONCLUSION

69
We can conclude from the analysis that the HDFC Bank current account
is not only developing product but also getting place in the minds of the
prospective customers.

The project has been a rewarding experience in more ways than one.

Firstly, I have gained an insight into the working of the HDFC Bank
current account. Secondly, I came to know about the problems and
suggestions of the customers regarding the HDFC Bank current account,
which will surely benefit the Bank in the long run.

A part from these facts the following are some other important facts
which can easily be inferred from the above comparison made

• Costumer reaction about the HDFC Bank current account is quite

interesting. The interesting reactions have come from the
businessmen and professionals side. The total number of
respondents surveyed are of the view that HDFC Bank is in it’s
developing phase getting hold in the marketing of it’s current
account in comparison with other leading bank’s current account.

• The main competitions that HDFC Bank faces are from well
established foreign and Indian banks viz;ICICI, STANDARD
CHARTERED, CITIBANK, PNB, SBI.

• The respondents are more positive about the HDFC Bank current
account features.

70
 BIBLIOGRAPHY

BIBLIOGRAPHY

71
Books
• Phillip Kotler
• Ramaswamy V.S., NamakumariS., Marketing Management
• Kothari C.R., Research Methodology
• Malhotra k. Naresh, Marketing Research
• Saxena Rajan, Marketing Management
• Gupta C.B., Marketing Management,

News papers

• Times of India
• Economic Times
• Financial Times

Web sites
• www.google.com
• www.hdfcbank.com

72
 QUESTIONNAIRE

QUESTIONNAIRE

Consumer Survey
1. Name:
2. Sex: Male  Female 

73
 3. Occupation:
Businessman  Joint Stock Companies  Professional 
Others

4. Which type of Accounts you are currently maintaining:

Savings A/c  Current A/c  Fixed Deposits 

Loan A/c 

How many times you normally transact in a week

Once a day twice a day  others

Specify--------------------------------------------------------------------
------------------------------------------------------------------------------

5. How do you transact

Through ATM-cum-Debit Card  Personally going to Bank 

Through cheque 

6. Are you familiar with HDFC Bank current account in Meerut

Yes  No 

7. Are you aware of HDFC five types of current accounts

Yes  No

8. If yes, then have you ever avail any of the following type of current
accounts

Plus current account  Trade current account 

Premium current account  Regular current account  Flexi
current account 

74
9. Are you satisfied with the facilities provided by HDFC current
account in comparison with other banks

Yes  No 

10.Do you want to switch over to any other bank’s current account
Yes  No

Thankyou

75