a study on banking at hdfc bank

8/12/2019 A Study on Banking at Hdfc Bank

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PROJECT FINAL REPORT

Summer Internship Project

PROJECT TITLE

A project report on


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COMPANY GUIE FACULTY GUIE

!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!

"r#nch M#n#$er I"MRAhme%#%'#p#%(#nj)


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Acknowledgements

If words are considered to be signs of gratitude then let these words

Convey the very same My sincere gratitude to HDFC BANK for

roviding me with an oortunity to wor! with BANK and giving

necessary directions on doing this ro"ect to the best of my abilities#

I am highly indebted to Mr)#$ Branch Manager and

comany ro"ect guide$ who has rovided me with the necessary

information and also for the suort e%tended out to me in the

comletion of this reort and his valuable suggestion and comments

on bringing out this reort in the best way ossible#

I also than! $ IBM&'Ahmedabad$ who has

sincerely suorted me with the valuable insights into the

comletion

of this ro"ect#


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I am grateful to all faculty members of IBM&'Ahmedabad and my

friends who have heled me in the successful comletion of this

ro"ect#


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CONTENTS

(r# No# (ub"ect Covered )age No#

* Ban!ing (tructure in India +,-

. Indian Ban!ing Industries /,0

1 2coming Foreign Ban! in India *3

4 HDFC BANK **,*.

5 Comany )rofile *1,*5

+ 6echnology used *+,*0

- )roduct and Customer segments .3,.1

/ Business (trategy .4,.5

0 Inside Hdfc Ban! .+,1*

*3 &uee 7arned 8 &uee (ent 1.,11

** &ecent Develoment 14,4*

*. (9:6 Analysis 4.,4/

*1 )ro"ect on )lastic Money 40,55


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BANKIN; (6&2C62&7 IN INDIA

Sche%u*e% "#n+s in In%i#

,A- Sche%u*e% Commerci#* "#n+s

Pu&*ic sector"#n+s

Pri.#te sector"#n+s

Forei$n"#n+s in

In%i#

Re$ion#* Rur#*"#n+


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"#n+s ,//- "#n+s ,01-

Here we more concerned about rivate sector ban!s and cometition

among them# 6oday$ there are .- rivate sector ban!s in the ban!ingsector? *0 old rivate sector ban!s and / new rivate sector ban!s#

6hese new ban!s have brought in state,of,the,art technology and

Aggressively mar!eted their roducts# 6he )ublic sector ban!s are

Facing a stiff cometition from the new rivate sector ban!s#

6he ban!s which have been setu in the *003s under the guidelines

of the N#r#simh#m Committeeare referred to as N79 )&I@A67

(7C6:& BANK(#

Ne( Pri.#te Sector "#n+s

(uerior Financial (ervices

Designed Innovative )roducts

6aed new mar!ets

Accessed ow cost N&I funds

;reater efficiency


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INIAN "AN'ING INUSTRIES

6he Indian ban!ing mar!et is growing at an astonishing rate$ with

Assets e%ected to reach 2(* trillion by .3*3# An e%anding

economy$ middle class$ and technological innovations are all

contributing to this growth#

6he countrys middle class accounts for over 1.3 million eole#

In correlation with the growth of the economy$ rising income levels$

increased standard of living$ and affordability of ban!ing roducts

are romising factors for continued e%ansion#


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6he Indian ban!ing Industry is in the middle of an I6

revolution$Focusing on the e%ansion of retail and rural ban!ing#

)layers are becoming increasingly customer , centric in their

aroach$ which has resulted in innovative methods of offering new

ban!ing roducts and services# Ban!s are now reali>ing the

imortance of being a big layer and are beginning to focus their

attention on mergers and acuisitions to ta!e advantage of

economies of scale andEor comly with Basel II regulation#

Indian ban!ing industry assets are e%ected to reach 2(* trillionby

.3*3 and are oised to receive a greater infusion of foreigncaital$G

says )rathima &a"an$ analyst in Celents ban!ing grou and authorof

the reort# 6he ban!ing industry should focus on having asmall
http://www.celent.com/bios/PRajan.htmhttp://www.celent.com/bios/PRajan.htm


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number of large layers that can comete globally rather thanhaving

a large number of fragmented layers#

2)C:MIN; F:&7I;N BANK( IN INDIA

By .330 few more names is going to be added in the list offoreign

ban!s in India# 6his is as an aftermath of the sudden interestshown

by &eserve Ban! of India aving roadma for foreign ban!s inIndia

greater freedom in India# Among them is the worlds best rivateban!

by EuroMone2 m#$#3ine$ (wit>erlands 2B(#

6he following are the list of foreign ban!s going toset

u business in India45


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&oyal Ban! of (cotland

(wit>erlands 2B(

2(,based ;7 Caital

Credit (uisse ;rou

Industrial and Commercial Ban! of China

6E UNERSTAN YOUR6ORL

6he Housing Develoment Finance Cororation imited


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commenced oerations as a (cheduled Commercial Ban! inJanuary

*005#

HDFC is Indias remier housing finance comany and en"oysan

imeccable trac! record in India as well as in internationalmar!ets#

(ince its incetion in *0--$ the Cororation has maintained

a

consistent and healthy growth in its oerations to remain themar!et

leader in mortgages# Its outstanding loan ortfolio covers well over a

million dwelling units# HDFC has develoed significant e%ertisein

retail mortgage loans to different mar!et segments and also has a

large cororate client base for its housing related creditfacilities#

9ith its e%erience in the financial mar!ets$ a strong mar!et

reutation$ large shareholder base and uniue consumer franchise$

HDFC was ideally ositioned to romote a ban! in the Indian

environment#


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HDFC Ban! began oerations in *005 with a simle mission ? to bea

8 6or*% C*#ss In%i#n "#n+)9 9e reali>ed that only a single

minded

focus on roduct uality and service e%cellence would hel usget

there# 6oday$ we are roud to say that we are well on our way

towards that goal#


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C:M)AN )&:FI7

STRONG NATIONAL NET6OR'

:FC "AN'


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As of March 1*$ .33/$ the Ban!s distribution networ! was at-+*

Branches and *0-- A6Ms in 1.- cities as against +/4branches

and *$+35 A6Ms in 1.3 cities as of March 1*$ .33-#

Against the regulatory arovals for new branches in hand$the

Ban! e%ects to further e%and the branch networ! by around*53

branches by June 13$ .33/# During the year$ the Ban! steedu

retail customer acuisition with deosit accounts increasingfrom

+#. million to /#- million and total cards issued


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..L for the year ended .33-,3/$ the Ban!s net advancesgrew

by 15#*L with retail advances growing by 1/#+L andwholesale

advances growing by 13L$ imlying a higher mar!et share inboth

segments#

6he transactional ban!ing business also registered healthy

growth

9ith cash management volumes increased by around /3L and

trade services volumes by around 43L over the reviousyear#

)ortfolio uality as of March 1*$ .33/ remained healthy withgross

nonerforming assets at *#1L and net non,erforming assetsat

3#4L of total customer assets# 6he Ban!s rovisioning oliciesfor

secific loan loss rovisions remained higher than regulatory

reuirements#


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TEC:NOLOGY USE IN :FC "AN'

In the era of globali>ation each and every sector faced the stiff

cometition from their rivals# And world also converted into the flat

from the globe# After the olicy of liberali>ation and &BI initiatives to

ta!e the ste for the rivate sector ban!s$ more and morechanges

are ta!ing the art into it# And there are create cometitionbetween

the rivate sector ban!s and ublic sector ban!#


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)rivate sector ban!s are today used the latest technology for the

different transaction of day to day ban!ing life# As we !now that

Information 6echnology lays the vital role in the each and every

industries and gives the otimum return from the limited resources#

Ban!s are service industries and today I6 gives the innovative

6echnology alication to Ban!ing industries# HDFC BANK is the

leader in the industries and today I6 and HDFC BANK together

combined they reached the s!y# New technology changed the mindof

the customers and changed the ueue concet from the history

ban!ing transaction# 6oday there are different channels areavailable

for the ban!ing transactions#

9e can see that the how technology gives the best results in the

below diagram# 6here are drastically changes seen in the use of

Internet ban!ing$ in a year .33* ed )rocessing 2nits Derived 7conomies of(cale


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7lectronic (traight 6hrough)rocessing

&educed 6ransaction Cost

Data 9arehousing $ C&M Imrove cost efficiency$

Cross sellInnovative 6echnology

Alication)rovide new or sueriorroducts

HDFC BANK is the very consistent layer in the New rivate sector

ban!s# New rivate sector ban!s to withstand the cometition from

ublic sector ban!s came u with innovative roducts and suerior

service#

;


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"r#nches @0B

ATM @B

ATM @/B

Phone "#n+in$

1;B

Internet ;/B

Mo&i*e 1B

< L customer initiated 6ransaction by Channel =


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:FC "AN' PROUCT AN CUSTOMERSEGMENTS

PERSONAL "AN'ING

Loan Product Deposit Product Investment & Insurance

Auto Loan

Loan Against

Security

Loan Against

Property

Personal loan

Credit card

2!"eeler loan

Co##ercial

$e"icles %inance

&o#e loans

'etail (usiness

(an)ing

*ractor loan

+or)ing Capital

,inance Construction

-.uip#ent

,inance

&ealt" Care

,inance

Sa$ing a/c

Current a/c

,ied deposit

e#at a/c

Sa%e eposit

Loc)ers

utual ,und

onds

no!ledge Centre

nsurance

eneral and &ealt"

nsurance

-.uity anderi$ati$es

udra old ar


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-ducation Loan

old Loan

Cards Payment Services Access To Bank

Credit Card

e(it Card

Prepaid Card

Fore Services

Product

Ser$ices

*rade Ser$ices

,ore ser$ice

ranc" Locater

' uidelines

etSa%e

erc"ant

Prepaid 'e%ill

illpay

isa illpay

nstaPay

irectPay

isaoney

*rans%er

e:onies

-lectronic ,unds

*rans%er

;nline Pay#ent

o% irect *a

etan)ing

;neie!

nstaAlert

o(ilean)ing

A*

P"one an)ing

-#ail State#ents

ranc" et!or)


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6:OLESALE "AN'ING

Corpor#te Sm#** #n% Me%iumEnterprises

Fin#nci#* Institutions#n% Trusts

Funded(ervices

Non Funded(ervices

@alue Added(ervices

InternetBan!ing

Funded (ervices

Non Funded(ervices

(eciali>ed

(ervices @alue added

services Internet Ban!ing

"AN'S

Clearing (ub,Membershi

&6;( 8

submembershi Fund 6ransfer

A6M 6ie,us

Cororate (alary aEc

6a% CollectionFin#nci#* Institutions

Mutu#* Fun%s

Stoc+ "ro+ers

Insur#nce Comp#nies

Commo%ities"usiness

Trusts


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B!SI"#SS $I%

Total Deposits ross Advances "et

'evenue

Ret#i* 6ho*es#*e

HDFC Ban! is a consistent layer in the rivate sector

ban! and have a well balanced roduct and business

mi% in the Indian as well as overseas mar!ets#

Customer segments


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NRI SERICES

Accounts D eposits Remitt#nces

&uee (aving aEc

&uee Current aEc

&uee Fi%ed Deosits

Foreign Currency Deosits

Accounts for &eturningIndians

North America

2K

7uroe

(outh 7ast Asia

Middle 7ast Africa

:thers

uic+ remitIn%i#Lin+

Cheue Loc+"oTe*e$r#phicH 6ire Tr#nser

Fun%s Tr#nserCheuesHsHTCs

In.estment D Insur#nces Lo#ns

Mutual Funds

Insurance

)rivate Ban!ing

)ortfolio Investment(cheme

Home oans

oans Against (ecurities

oans Against Deosits

;old Credit Card

P#2ment Ser.ices Access To "#n+

Net(afe

Bill)ay

Insta)ay

Direct)ay

NetBan!ing

:ne@iew

InstaAlert

A6M


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@isa Money

:nline Donation

)honeBan!ing

7mail (tatements

Branch Networ!

B2(IN7(( (6&767;

HDFC BANK mission is to be # 6or*% C*#ss In%i#n "#n+$

benchmar!ing themselves against international standards and best

ractices in terms of roduct offerings$ technology$ servicelevels$

ris! management and audit comliance# 6he ob"ective is to build

sound customer franchises across distinct businesses so as to be

a

referred rovider of ban!ing services for target retail andwholesale

customer segments$ and to achieve a healthy growth inrofitability$

consistent with the Ban!s ris! aetite# Ban! is committed to dothis

while ensuring the highest levels of ethical standards$rofessional

integrity$ cororate governance and regulatory comliance#Continue


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to develo new roduct and technology is the main businessstrategy

of the ban!# Maintain good relation with the customers is themain

and rime ob"ective of the ban!#

:FC "AN' &usiness str#te$2 emph#si3es theo**o(in$ 4

Increase mar!et share in Indias e%anding ban!ing and

financial services industry by following a discilinedgrowth

strategy focusing on uality and not on uantity and delivering

high uality customer service#

everage our technology latform and oen scaleablesystems

to deliver more roducts to more customers and tocontrol

oerating costs#

Maintain current high standards for asset uality through

discilined credit ris! management#

Develo innovative roducts and services that attract the


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targeted customers and address inefficiencies in the Indian

financial sector#

Continue to develo roducts and services that reduce ban!s

cost of funds#

Focus on high earnings growth with low volatility#

IN(ID7 HDFC BANK

FI@7 (G $ )A&6 :F KAI7N

9:&K )AC7 6&AN(F:&MA6I:N

Focus on effective wor! lace organi>ation

Believe in

8 Sm#** ch#n$es *e#% to *#r$e impro.ement 9

7very successful organi>ation have their own strategy to win the


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race in the cometitive mar!et# 6hey use some techniue and

methodology for smooth running of business# HDFC BANK also

auired the Jaanese techniue for smooth running of wor! and

effective wor! lace organi>ation#

Five O( )art of '#i3enis the techniue which is used in the ban!

For easy and systematic wor! lace and eliminating unnecessary

things from the wor! lace#

B7N7FI6 :F FI@7 (G

It can be started immediately#

7very one has to articiate#

Five (G is an entirely eole driven initiatives# Brings in concet of ownershi#

All wastage are made visible#

FI@7 O( Means ?,

(,* (:&6 (7I&I

(,. ((67MA6I7 (7I6:N(,1 ()IC,N,()AN (7I&:(,4 (6ANDA&DI7 (7IK76(2(,5 (2(6AIN (HI6(2K7


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e and arrange retrieval#

It largely focus on good labeling and identification ractices#

:b"ective ?, A lace for everything and everything in its laceG#


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It focus on simlification and standardi>ation# It involve standard

rules and olicies# It establish chec!list to facilitates autonomous

maintenance of wor!lace# It assign resonsibility for doing

various "obs and decide on Five ( freuency#

ed wor! lace# (ustain means regular training to

maintain

standards develoed under (,4# It brings in self, disciline and

commitment towards wor!lace organi>ation#

LA-LL ; ,L-

,L- =-'

S=


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B(% LAB#L

,or -a#ple

* E 1 E A E +

* 8 9or! (tation


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'elations"ip anager

ranc" anager

e#at

;t"ers

In the HDFC BANK each deartment has their different colorcoding

aly on the different file# Due to this everyone aware about their

articular color file which is coding on it and they save their valuable

time# It is a art of Kai>en and also included in the system of theFive

O(# ogic behind it that $ the color coding are always differentiate the

things from the similar one#

H2MAN &7(:2&C7(

6he Ban!s staffing needs continued to increase during theyear

articularly in the retail ban!ing businesses in line with the business


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growth# 6otal number of emloyees increased from *4/-/ asof

March1*$.33+ to .*4-- as of March 1*$ .33-# 6he Ban! continues

to

focus on training its emloyees on a continuing basis$ both on the"ob

and through training rograms conducted by internal ande%ternal

faculty#

6he Ban! has consistently believed that broader emloyeeownershi

of its shares has a ositive imact on its erformance and emloyee

motivation# 6he Ban!s emloyee stoc! otion scheme so far covers

around 0333 emloyees#


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&2)77 7A&N7D , &2)77 ()7N6

It is more imortant for every organi>ation to !now about fromwhere

and where to sent money# And balanced between these twothings

ruee earned and ruee sent are reuired for smooth running of

business and financial soundness# 6his tye of watch can control

and eliminate the unnecessary sending of business# In thisdiagram

it include both things from where Ban! earned &uee and where to

sent#


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HDFC BANK earned from the OInterest from Advances 5*#*4 L $

OInterest from Investment .-#*. L$ ban! earned commission

e%change and bro!erage of *5#.5 L# 6hese are the ma"or earning

sources of the ban!# Ban! also earned from the Fore% and

Derivatives and some other Interest Income#

Ban! sent 10#-5 L on Interest 7%ense$ 13#.- L on :erating

7%ense and *4#5/ L on )rovision# Ban! also sent Dividend and

6a% on dividend$ oss on Investment $ 6a%#

As we discuss above that balancing is must between these two for

every organi>ation esecially in the era of globali>ation where there

are stiff cometition among various mar!et layers#

&7C7N6 D7@7:)M7N6


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6he &eserve Ban! of India has aroved the scheme of

amalgamation of Centurion "#n+ o Punj#& Lt%) with :FC "#n+

Lt%) with effect from May .1$ .33/#

All the branches of Centurion Ban! of )un"ab will function as

branches of HDFC Ban! with effect from May .1$ .33/# 9ith &BIs

aroval$ all reuisite statutory and regulatory arovals for the

merger have been obtained#


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6he combined entity would have a nationwide networ! of **+-

branchesP a strong deosit base of around &s#*$..$333 croresand

net advances of around &s#/0$333 crores# 6he balance sheet si>eof

the combined entity would be over &s#*$+1$333 crores#

Mer$er (ith Centurion "#n+ o Punj#& Limite%

:n March .-$ .33/$ the shareholders of the Ban! accorded their

consent to a scheme of amalgamation of Centurion Ban! of )un"ab

imited with HDFC Ban! imited# 6he shareholders of the Ban!

aroved the issuance of one euity share of &s#*3E, each of HDFC

Ban! imited for every .0 euity shares of &e# *E, each held in

Centurion Ban! of )un"ab imited# 6his is sub"ect to receit ofArovals from the &eserve Ban! of India$ stoc! e%changesand

:ther reuisite statutory and regulatory authorities# 6heshareholders

Also accorded their consent to issue euity shares andEorwarrants

convertible into euity shares at the rate of &s#*$513#*1 eachto


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HDFC imited andEor other romoter grou comanies onreferentialbasis$ sub"ect to final regulatory arovals in this regard#

6he

(hareholders of the Ban! have also aroved an increase inthe

authori>ed caital from &s#453 crores to &s#553 crores#

isit min)&*o$spot)comor more

)romoted in *005 by Housing Develoment FinanceCororation


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as a leading layer in retail ban!ing$ wholesale ban!ing$ andtreasury

oerations$ its three rincial business segments#

6he ban!s cometitive strength clearly lies in the use of technology

and the ability to deliver world,class service with raid resonsetime#

:ver the last *1 years$ the ban! has successfully gained mar!et

share in its target customer franchises while maintaining healthy

rofitability and asset uality#

As on March 1*$ .33/$ the Ban! had a networ! of -+* branchesand

*$0-- A6Ms in 1.- cities# For the year ended March 1*$ .33/$the

Ban! reorted a net rofit of IN& *5#03 billion


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)ublications have recogni>ed the ban! for its erformance and

uality#

Centurion Ban! of )un"ab is one of the leading new generation

rivate sector ban!s in India# 6he ban! serves individualconsumers$small and medium businesses and large cororations with a full

range of financial roducts and services for investing$ lending and

advice on financial lanning# 6he ban! offers its customers an array

of wealth management roducts such as mutual funds$ life and

general insurance and has established a leadershi osition#

6he ban! is also a strong layer in foreign e%change services$

ersonal loans$ mortgages and agricultural loans#

Additionally the ban! offers a full suite of N&I ban!ing roductsto


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:verseas Indians# :n .0th August .33-$ Centurion Ban! of)un"ab

merged with ord Krishna Ban!


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ACHI7@7M7N6 IN .33-

usiness *oday

onitor roup

sur$ey

;ne o% ndia>s ?$ost Innovative Companies?

,inancial -press

-rnst @oungA!ard

est an) A!ard in t"e Private Sector category

lo(al &'

-cellence A!ards

Asia Paci%ic &'

)#mployer Brand o* t+e ,ear -../ 0-..1)A!ard ,irst 'unner up #any #ore
http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23


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CongressB

usiness *oday )Best Bank) Award

un radstreet :

A#erican -press

Corporate est

an) A!ard 2007

)Corporate Best Bank) Award

*"e o#(ay Stoc)

-c"ange and

assco#

,oundation>s

usiness %or Social'esponsi(ility

A!ards 2007

)Best Corporate Social 'esponsi2ility

Practice) Award

;utloo) oney

* Pro%it

est an) A!ard in t"e Pri$ate sector category

*"e Asian an)er

-cellence in 'etail

,inancial Ser$icesA!ards

est 'etail an) in ndia

Asian an)er &,C A anaging irector Aditya Puri !ins t"e

Leaders+ip Ac+ievement Award *or India
http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htm


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S6OT ANALYSIS

STRENGT:

&ight strategy for the

right roducts#

(uerior customer

service vs# cometitors#

;reat Brand Image

6EA'NESSES

(ome gas in range for

certain sectors#

Customer service staff need

training#

)rocesses and systems$ etc


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)roducts have reuired

accreditations#

High degree of customersatisfaction#

;ood lace to wor!

ower resonse time

with efficient and

effective service#

Dedicated wor!forceaiming at ma!ing along,term career in

the field#

Management cover

insufficient#

(ectoral growth isconstrained by lowunemloyment levels andcometition for staff


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Opportunities

)rofit margins will be good#

Could e%tend to overseas

broadly#

New secialist alications#

Could see! better customerdeals.

Fast,trac! career

develoment oortunities

on an industry,wide basis#

An alied research centre

to create oortunities fordeveloing techniues torovide added,valueservices#

Thre#ts

egislation could imact#

;reat ris! involved

@ery high cometition

revailing in the industry#

@ulnerable to reactive

attac! by ma"or cometitors

ac! of infrastructure in

rural areas could constrain

investment#

High volumeElow cost

mar!et is intenselycometitive#


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C:M)76I6I@7 (9:6 ANA(I( 9I6H ICICIBANK

(6&7N;6H( 97AKN7((7(

:)):&

62NI6I7(

( 8 : (trategies

(trength? arge Caital base#

:ortunity? Mar!et 7%ansion#

(trategy? Dee )enetration into

&ural Mar!et#

9 8 : (trategies

9ea!ness? 9or!force

&esonsiveness#

:ortunity? :utsourcing of Non 8 Core Business#

(trategy? :utsource Customer Care other 7,Hels#

6H&7

A6(

( 8 6 (trategies

(trength? ow oerating costs

6hreat? Increased Cometitionfrom others )vt# Ban!s#

(trategy? (tes to 7nsure oyalty by old

Customers#

9 8 6 (trategies

9ea!ness? Not 7ual to International (tandards#

6hreat? 7ntry of many Foreign Ban!s#

(trategy? Consider additional

benefits


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et#i*e% An#*2sis4

i) Stren$th 5 Opportunit2 An#*2sis)

Stren$th4

It is well !now that ICICI Ban! has the largest Authorised Caital

Base in the Ban!ing (ystem in India i#e# having a total caacity to

raise &s# *0$333$333$333 ens

has given a huge rise in savings deosits 8 from the above ointit

is clear that there is a huge mar!et e%ansion ossible inban!ing


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sector in India#

Str#te$24

From the analysis of (trength :ortunity the simle and

straight ossible strategy for ICICI Ban! could be , toenetrate

into the rural sector of India for e%anding its mar!et share aswell

as leading all other )vt# Ban!s from a great ga#

ii) Stren$th 5 Thre#t An#*2sis)

Stren$th4

ICICI Ban! is not only !nown for large caital but also for havinga

low oerations cost though having huge number of branchesand

services rovided#

Thre#t4

After showing a significant growth overall$ India is able toattract

many international financial ban!ing institutes$ which are!nown


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for their state of art wor!ing and !eeing low oerationcosts#

Str#te$24

6o ensure that ICICI Ban! !ees going on with low oerationcost

have continuous business it should simly romote itself well

rovide uality service so as to ensure customer loyalty$

therefore

guaranteeing continuous business#

iii) 6e#+ness 5 Opportunit2 An#*2sis)

6e#+ness4

It is well !nown that wor!force resonsiveness in ban!ing sectoris

@ery low in Indian ban!ing sector$ though ICICI Ban! hasbetter

resonsible staff but it still lac!s behind its counterarts li!eH(BC$

HDFC BANK$ CI6I BANK$ 7( BANK etc#


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Opportunit24

In the resent world$ India is referred one of the best laces

for

out 8 sourcing of business rocess wor!s and many more#

Str#te$24

As international comanies are reaing huge benefits afterout,

sourcing there customer care B):s$ this same strategy should

be imlemented by ICICI Ban! so as to have roercustomer

service without hindering customer e%ectations#

i.) 6e#+ness 5 Thre#t An#*2sis)

6e#+ness4

6hough having a international resence$ ICICI Ban! has notbeen

able to !ee u the international standards in rovidingcustomer


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service as well as ban!ing wor!s#

Thre#t4

In recent times$ India has witnessed entry of manyinternational

ban!s li!e CI6I Ban!$ 7( Ban! etc which osses ane%ternal

entrant threat to ICICI Ban! 8 as this Ban!s are !nown for theirart

of wor!ing and maintain high standards of customerservice#

Str#te$24

After having new entrants threat$ ICICI Ban! should come u

with

More additional benefits to its customer or may be evenreduce

some fees for any additional wor!s of customers#

)&:J7C6 :N )A(6IC M:N7


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PLASTIC $(" #,PLASTIC $("#,

I give the ro"ect on )lastic Money to ban!# 6he ob"ective behindthis

ro"ect is to increase the rich customers list in a ban!# )lasticMoney

title itself says the use of Credit Card and Debit Card in day today


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transaction of the business# I reared the resentation on itand

submitted to ban! and Ban! already started wor! on this ro"ect#

Idea behind this ro"ect is to sale the bul! roduct# 6arget customer

:f this ro"ect are two arties one is 9holesaler and second is

&etailer# Due to this idea ban! also sell their swie machineto

wholesaler and create brand image in the mar!et#

6he idea behind this$ ban! give the credit card swie machineto

wholesalers and retailers use the credit card of the ban!# Ban!gives

the 53 days credit to their credit card holders# (o here retailerscan

get benefit of long credit eriod and on the other side wholesalerscan

get the benefit of same day ayment# As a result ban! got thewide

list of customers of wholesalers and retailers#


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):97&):IN6 )&7(7N6A6I:N :N )A6ICM:N7


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(B3#CTI4#(B3#CTI4# !se o* Plastic!se o* Plastic

$oney$oney

Target customersTarget customersare 5+olesalers andare 5+olesalers and

'etailers'etailers

Bulk sales surelyBulk sales surely

possi2lepossi2le



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ID#AID#A

5e sale our product to w+olesalers and 'etailers5e sale our product to w+olesalers and 'etailers

and create group transactions6and create group transactions6

Credit CardCredit Card andand De2it CardDe2it Card as a medium o*as a medium o*

transaction6transaction6

Bot+ t+e parties get 2ene*it *rom it 6Bot+ t+e parties get 2ene*it *rom it 6

Bank got t+e new customers as a result6Bank got t+e new customers as a result6

Idea behind it$ to convenience both the arties and create the grou

transaction between them so ban! can got the ma%imum benefitfrom

it# 7ach wholesaler has more than *5 to .3 retailers$ so by this way

ban! sell the bul! roducts#


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7ow it works7 ow it works

2eet to2eet to w+olesalersw+olesalers %irst%irst

Collect details o% t"eirCollect details o% t"eir 'etailers'etailers

Con$ince (ot" t"e parties and s"o!ing t"e# aCon$ince (ot" t"e parties and s"o!ing t"e# a

(ene%its(ene%its %ro# it%ro# it

,orce to open a (an) account in,orce to open a (an) account in 7DFC Bank7DFC Bank

to (ot" t"e partiesto (ot" t"e parties

6his ower oint slide shows the how idea wor!s behind this

ro"ect#

Meet the wholesaler first and get the details about their retailers and

convince both arties and shows the benefit of using this tye of

transaction by lastic money#


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Bene*it to BankBene*it to Bank

BulkBulkproduct sellingproduct selling

Because w+olesalers and retailers are in aBecause w+olesalers and retailers are in a

groupgroup

Indirect way toIndirect way to marketingmarketing

Ban! always find those customers which are more involve inthe

ban!ing transaction# 6hese tye of grou transaction betweenthe

wholesalers and retailers maintain the well account in a ban!#


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$arketing Strategy$arketing Strategy

5t>s s"o! ti#e and it>s a(out one t"ing5t>s s"o! ti#e and it>s a(out one t"ing

co##unicating t"e (ene%its o% your product orco##unicating t"e (ene%its o% your product or

ser$ice in suc" a !ay t"at prospects orser$ice in suc" a !ay t"at prospects or

custo#erscusto#ers wantwant your solution to t+eiryour solution to t+eir

pro2lem666pro2lem666

isit min &*o$spot com or more

a study on banking at hdfc bank

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