sarath hdfc crm report

7/31/2019 Sarath Hdfc Crm Report

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CONTENTS

CHAPTER-I

INTRODUCTION

DEFINITION

MEANING

CHAPTER-II

OBJECTIVES OF STUDY

NEEDS OF STUDY

USESOF TOPIC

FEATURES OF TOPIC

LIMITATIONS

METHDOLOGY

CHAPTER-III

INDUSTRY PROFILE


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CHAPTER-IV

COMPANY PROFILE

CHAPTER-V

DATA ANALYSIS AND INERPRETATION

CHAPTER-VI

FINDINGS

SUGGESTIONS

CONCLUSION

CHAPTER-VII

BIBLOGRAPHY

APPENDIX

CHAPTER-VIII

QUESTIONARRIES


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CHAPTER-1

INTRODUCTION

CRM, or Customer relationship management, is a number of strategies and

technologies that are used to build stronger relationships between companies

and their customers. A company will store information that is related to their

customers, and they will spend time analyzing it so that it can be used for this

purpose.

Some of the methods connected with CRM are automated, and the purpose of

this is to create marketing strategies which are targeted towards specific

customers. The strategies used will be dependent on the information that is

contained within the system. Customer relationship management is commonly

used by corporations, and they will focus on maintaining a strong relationship

with their clients.

There are a number of reasons why CRM has become so important in the last10 years. The competition in the global market has become highly competitive,

and it has become easier for customers to switch companies if they are not

happy with the service they receive. One of the primary goals of CRM is to

maintain clients. When it is used effectively, a company will be able to build a

relationship with their customers that can last a lifetime. Customer relationship

management tools will generally come in the form of software. Each software

program may vary in the way it approaches CRM. It is important to realize that

CRM is more than just a technology.


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Customer relationship management could be better defined as being a

methodology, an approach that a company will use to achieve their goals. It

should be directly connected to the philosophy of the company. It must guide

all of its policies, and it must be an important part of customer service and

marketing. If this is not done, the CRM system will become a failure. There are

a number of things the ideal CRM system should have. It should allow the

company to find the factors that interest their customers the most. A company

must realize that it is impossible for them to succeed if they do not cater to the

desires and needs of their customers. Customer relationship management is a

powerful system that will allow them to do this.

It is also important for the CRM system to foster a philosophy that is oriented

towards the customers. While this may sound like common sense, there are a

sizeable number of companies that have failed to do it, and their businesses

suffered as a result. With CRM, the customer is always right, and they are the

most important factor in the success of the company. It is also important for the

company to use measures that are dependent on their customers. This will

greatly tip the odds of success in their favor. While CRM should not be viewed

as a technology, it is important to realize that there are end to end processes that

must be created so that customers can be properly served. In many cases, these

processes will use computers and software.

Customer support is directly connected to CRM. If a company fails to provide

quality customer support, they have also failed with their CRM system. When a

customer makes complaints, they must be handled quickly and efficiently.


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The company should also seek to make sure those mistakes are not repeated.

When sales are made, they should be tracked so that the company can analyze

them from various aspects. It is also important to understand the architecture of

Customer relationship management. The architecture of CRM can be broken

down into three categories, and these are collaborative, operational, and

analytical. The collaborative aspect of CRM deals with communication between

companies and their clients.

Customer satisfaction is one of the main objectives of any organization.

Every organization tries to know the customer satisfaction about their products.So a study on customer satisfaction helps the organization as well as me to gain

a vast knowledge over the real world tastes and preferences of customer

Whether the buyer is satisfied after purchase depends on the offers performance

in relation to the buyers expectations. In general satisfaction is a persons

feelings of pleasure or disappointment resulting from comparing a products

perceived performance in relation to his or her expectations.

As this definition makes clear, satisfaction is a function of perceived

performance and expectations. If the performance falls short of expectations,

the customer is dissatisfied. If the performance matches the expectations, the

customer is satisfied. If the performance exceeds expectations, the customer is

highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who

are just satisfied still find it easy to switch when a better offer comes along.

Those who are highly satisfied are much less ready to switch. High satisfaction

or delight creates an emotional bond with the brand, not just a rational


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preference. The result is high customer loyalty. Xeroxs senior management

believes that a very satisfied or delighted customer is worth 10 times as much to

the company as a satisfied customer. A very satisfied customer is likely to stay

with Xerox many more years and buy more than a satisfied customer will.

How do buyers form their expectations? From past buying experience,

friends and associates advice and marketers and competitors information and

promises. If marketers raise expectations too high, the buyer is likely to be

disappointed, For example, Holiday Inn ran a campaign a few years ago called

No Surprises Yet hotel guests still encountered a host of problems, andHoliday Inn had to withdraw the campaign. However, if the company sets

expectations too low, it wont attract enough buyers (although it will satisfy

those who do buy).

Some of todays most successful companies are raising expectations and

delivering performances to match. These companies are aiming for TCS- total

customer satisfaction. Xerox for example, guarantees total satisfaction and

will replace at its expense any dissatisfied customers equipment within a

period of three years after purchase. Cigna advertises Well never be 100%

satisfied until you are, too. And one of Hondas ads says: One reason our

customers are so satisfied is that we arent. Nissan invites potential infinity

buyers to drop in for a guest drive (not a test drive) because the Japanese

word for customer is honored guest. Look at what high satisfaction can do

Saturn In the late 1980s, Saturn (General Motors newest car division) changed

the whole buyer seller relationship with a New Deal for car buyers There

would be a fixed price (none of the traditional haggling); a 30-day guarantee or


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money back; salespeople on salary, not on commission (none of the traditional

hard sell). Once a sale is made, the sales staff surrounds the new owner for

commemorative photo, with everyone smiling.

The companys fifth anniversary celebration at the Tennessee headquarters was

attended by more than 4000 Saturn from all across the country. Said Saturns

president: Saturn is more than a car its a whole new way of doing things, of

working with our customers and with one another.

A customers decision to be loyal or to defect is the sum of many small

encounters with the company. Consulting firm Forum Corporation says that inorder for all these small encounters to add up to customer loyalty, companies

need to create a branded customer experience. Heres how Canadian PacificHotels, a chain with 27 properties, did just that.

Every business organization depends on customers for sustenance, the question

is how to create and maintain customer satisfaction. Every business

communicates with their clients in many different ways, especially in our

technology rich and information based society. How we treat all of this

information is where CRM plays a key role.

CRM acts as a central repository of information on your clients and potential

clients. Customer relationship management software hones in on the

relationship. As in many publications of late on one to one marketing, cyclical

selling and counselor selling the mainstay is the relationship and how we

recognizeit.

Salesboom.com CRM tools use technology to organize information you receive

about your customers and record it in an orderly manner. Online, hosted, web

based CRM software helps you understand your customer needs and helps you


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recognize the processes in place to achieve your business goals. Customer

loyalty has a significant impact on both the top and bottom line. To maintain

customer loyalty is to be informed on where you have been and where you are

going. The first step in your CRM strategy is to take a snapshot of where you

are currently. From this base you can design streamlined, customized and fully

automated business processes in Salesboom Cloud CRM.

Just think of Cloud CRM as a tool that when you open a customers account,

you can see all the consolidated data about that account: contact information,

account history, sales, cases, invoices, quotes, files, emails, faxes, letters, notes

and any other pertinent information. All of this information is readily available

online, anywhere the Internet is available.

Keeping Your Customers Happy

Since your first concern is customer satisfaction you should be aware of some

emotional stumbling blocks in your path: selective perception, user error and

buyer's remorse.

Selective perception is the process in which a person sees only selected details

from the entire picture. This attention to detail is sometimes petty. For example,

a customer may have a new copying machine that works like a charm, but he is

irritated by the sound of the motor. He focuses only on what is wrong rather

than what is right.

This occurs because buyers expect their purchases to be perfect. Regardless of

the purchase price, they figure that for what they spent, they deserve perfection.


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When you encounter someone who practices selective perception, evaluate the

situation to determine if the complaint is reasonable or exaggerated.

If it is exaggerated, try to resolve the problem by pointing out benefits and

features that compensate. Put the negative detail in a different perspective for

your client so that it becomes one small part of the total picture.

Many sales involve the installation of a new system or piece of equipment, and

the buyer or their employees must be trained to use it. Their successful use of

the equipment depends upon the effectiveness of the training, and it is

imperative that the salesperson follows through after the training period to make

sure the client uses the purchase properly.

It is not uncommon for people to forget 75 percent of what they hear after two

days. This can cause "user error", which will significantly affect the outcome of

your test and may prevent your client from reaching his success criteria.

Often a client will be unhappy about a purchase and not realize that it is due to

improper operation. The more complex something is, the more training it

requires using it properly. In the interest of implementing the product quickly,

users may settle for incomplete training or become sloppy in their application of

good training. In any case, look for user error whenever a success criterion is

not reached.

"Buyer's remorse" refers to the regret that a buyer feels after making a purchase.

It could be caused by selective perception, user error, or the client's error.

Whatever the reason, the full benefits of the product are not realized.


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DEFINITION:

According to philipkotler CRM is ( Customer Relationship Management )

encloses two concepts, the CRM refers to the strategy of the business address to

the client as well as every computing application , including the software and

the hardware known as front office. They are necessary to process, to analyse

and expose the outcome information to measure and feed the developed strategy

of the enterprise.

MEANING:

Customer Relationship Management is a customer-focused

business strategy designed to optimize revenue, profitability,

and customer loyalty.

By implementing a CRM strategy, an organization can

improve the business processes and technology solutions

around selling, marketing and servicing functions across all

customer touch-points (for example: Web, e-mail, phone,

fax,in-person).

A primary objective of CRM is to provide the entire

organization with a complete, 360-degree view of the

customer, no matter where the information resides or where

the customer touch-point occurred.


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Today, many businesses manage different aspects of

customer relationships with multiple information systems,

which weaken customer service and ultimate reduce total

sales potential.

To realize the benefits of CRM, it is important to have an

integrated solution across all customer information systems,

tying together the front and back offices for a complete view

of customers in order to service them better.


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CHAPTER-II

OBJECTIVE OF STUDY

Strategic Analysis of emerging markets for private sector banks.In preview of

HDFC bank

To study the customer relationship management in HDFC Bank

To study the performance of the bank

Based on gender and age group what is the response of the respondents towards this

branch.

Would respondents open an account in this Bank.

To observe if people still prefer Public Banks over Private Banks, being more safe

and secure.

NEEDS OF STUDY:

USES OF TOPIC:

FEATURES OF TOPIC:


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LIMITATIONSOF STUDY:

The survey that I have conducted was very interesting. I really enjoyed interacting

with people of the AP Region and knowing about their views about the banks in

Indian Sector. But there are some limitations too.

For selling banking products, banks continuously make calls to the people and push

them their banking products. Some people get frustrated by the continuous calling

from the banks. So, when they came to know that I am from some banks, they start

scolding either the bank or the sales persons who is making them the calls. So, it

became hindrance in my study.

People do not want to disclose their contact no. especially to person who is coming

from the banks. Moreover, getting the contact numbers is very much required for the

banks.

METHDOLOGY OF STUDY:

DATA RESOURCE: The data is primarily data and secondary data.

PRIMARY DATA: The data is collected through the interactions with

financial manager of the organization and other employees in the finance

department.

SECONDARY DATA: The secondary data was be collected through various

journals, newspapers, websites, magazines etc.,


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.


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CHAPTER-III

INDUSTRY PROFILE

INDIAN BANKING STRUCTURE

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its

origins back to June 1806 and that is the largest commercial bank in the country. Central

banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to commercial

banking functions. After India's independence in 1947, the Reserve Bank was nationalized

and given broader powers. In 1969 the government nationalized the 14 largest commercial

banks; the government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have

government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign

banks. They have a combined network of over 53,000 branches and 17,000 ATMs.According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75

percent of total assets of the banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits

and limitations in operating in India. Each has their own dedicated target market. Few of

them only work in rural sector while others in both rural as well as urban. Many even are

only catering in cities. Some are of Indian origin and some are foreign players.


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All these details and many more are discussed over here. The banks and its relation with the

customers, their mode of operation, the names of banks under different groups and other such

useful informations are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has

shown certain interest to involve more of foreign banks than the existing one recently. This

step has paved a way for few more foreign banks to start business in India.


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Scheduled Banks in India

Schedule CommercialBanks

Schedule Co-operativeBanks

Public

sector

banks(27)

Private

Sector

Banks(30)

Foreign

Banks

in India(36)

Regional

Rural

Banks

(196)

Scheduled

Urban Co-

operative

Banks

(57)

Scheduled

State Co-

operative

Banks (16)

Nationalized

Banks (19)

SBI &its

Subsidia

ries (8)

Old

Private

Sector

Banks

21

New

Private

Sector

Banks (9)


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PUBLIC SECTOR BANKS IN INDIA

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks

which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, theUnited Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz.

Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union

BankLtd. (1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), a Government of India Undertaking offers Domestic,

NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in

Dehradun District (UP) and Hanumangarh District (Raiasthan) disbursing small loans. This

Public Sector Bank India has implemented 14 point action plan for strengthening of credit

delivery to women and has designated 5 branches as specialized branches for women

entrepreneurs.

The following are the list of Public Sector Banks in India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank
http://finance.indiamart.com/investment_in_india/public_sector_banks.htmlhttp://finance.indiamart.com/investment_in_india/public_sector_banks.htmlhttp://finance.indiamart.com/investment_in_india/public_sector_banks.htmlhttp://finance.indiamart.com/investment_in_india/public_sector_banks.html


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Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

State Bank of India

o State Bank of Bikaner & Jaipur

o State Bank of Hyderabad

o State Bank of Indore

o State Bank of Mysore

o State Bank of Saurastra

o State Bank of Travancore


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PRIVATE SECTOR BANKS IN INDIA

Private Banking in India was practiced since the beginning of banking system in India. The

first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. Itis one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest

development bank in the world as Private Banks in India and has promoted a world class

institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank of

India was Housing Development Finance Corporation Limited, to set up a bank in the private

sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was

incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and

commenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore

has a pride of place for having the first branch inception in the year 1934. With successive

years of patronage and constantly setting new standards in banking, ING Vysya Bank has

many credits to its account.

List of Private Banks in India

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

City Union Bank

Dhanalakshmi Bank


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Development Credit Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

South Indian Bank

United Western Bank

UTI Bank

2.4 COOPERATIVE BANKS IN INDIA

The Co operative banks in India started functioning almost 100 years ago. The Cooperative

bank is an important constituent of the Indian Financial System, judging by the role assignedto co operative, the expectations the co operative is supposed to fulfill, their number, and the

number of offices the cooperative bank operate. Though the co operative movement

originated in the West, but the importance of such banks have assumed in India is rarely

paralleled anywhere else in the world. The cooperative banks in India plays an important role

even today in rural financing. The businesses of cooperative bank in the urban areas also has
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increased phenomenally in recent years due to the sharp increase in the number of primary

co-operative banks.

Co operative Banks in India are registered under the Co-operative Societies Act. The

cooperative bank is also regulated by the RBI. They are governed by the Banking

Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

Farming

Cattle

Milk

Hatchery

Personal finance

Cooperative banks in India finance urban areas under:

Self-employment

Industries

Small scale units

Home finance

Consumer finance

Personal finance
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Some facts about Cooperative banks in India

Some cooperative banks in India are more forward than many of the state and private

sector banks.

According to NAFCUB the total deposits & lendings of Cooperative Banks in India

is much more than Old Private Sector Banks & also the New Private Sector Banks.

This exponential growth of Co operative Banks in India is attributed mainly to their

much better local reach, personal interaction with customers, and their ability to catch

the nerve of the local clientele.

2.5 REGIONAL RURAL BANKS IN INDIA

Rural banking in India started since the establishment of banking sector in India. Rural Banks

in those days mainly focused upon the agro sector. Regional rural banks in India penetrated

every corner of the country and extended a helping hand in the growth process of the

country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread

in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The

total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in

rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are

located in remote rural areas.

Apart from SBI, there are other few banks which functions for the development of the rural

areas in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited
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The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a

vital role in rural banking in the economy of Haryana State and has been providing aids and

financing farmers, rural artisans, agricultural laborers, entrepreneurs, etc. in the state and

giving service to its depositors.

NABARD

National Bank for Agriculture and Rural Development (NABARD) is a development bank in

the sector of Regional Rural Banks in India. It provides and regulates credit and gives service

for the promotion and development of rural sectors mainly agriculture, small scale industries,

cottage and village industries, handicrafts. It also finances rural crafts and other allied rural

economic activities to promote integrated rural development. It helps in securing rural

prosperity and its connected matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first

of its kind in rural banks of India. The impressive story of its inception is interesting and

inspiring for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It has

expanded its branch network in a big way to actively participate in the developmental of the

rural and semi-urban areas in conformity with the objectives of nationalization.

Syndicate Bank was firmly rooted in rural India as rural banking and has a clear vision of

future India by understanding the grass root realities. Its progress has been abreast of thephase of progressive banking in India especially in rural banks.


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FOREIGN BANKS IN INDIA

Foreign Banks in India always brought an explanation about the prompt services to

customers. After the set up foreign banks in India, the banking sector in India also becomecompetitive and accurative.

New rules announced by the Reserve Bank of India for the foreign banks in India in this

budget have put up great hopes among foreign banks which allow them to grow unfettered.

Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that

foreign banks in India may not acquire Indian ones (except for weak banks identified by the

RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely.

Please see the list of foreign banks in India till date.

List of Foreign Banks in India

ABN-AMRO Bank

Abu Dhabi Commercial Bank

Bank of Ceylon

BNP Paribas Bank

Citi Bank

China Trust Commercial Bank

Deutsche Bank

HSBC

JPMorgan Chase Bank

Standard Chartered Bank

Scotia Bank


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Taib Bank

By the year 2009, the list of foreign banks in India is going to become more quantitative as

number of foreign banks are still waiting with baggage to start business in India.

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign banks in India. This is as

an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for

foreign banks in India greater freedom in India. Among them is the world's best private bank

by EuroMoney magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India

Royal Bank of Scotland

Switzerland's UBS

US-based GE Capital

Credit Suisse Group

Industrial and Commercial Bank of China

Merrill Lynch is having a joint venture in Indian investment banking space -- DSP Merrill

Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms.GE Capital is also having a

wide presence in consumer finance through GE Capital India.

India's GDP is seen growing at a robust pace of around 7% over the next few years, throwing

up opportunities for the banking sector to profit from.

The credit of banks has risen by over 25% in 2004-05 and the growth momentum is expected

to continue over the next four to five years.


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Participation in the growth curve of the Indian economy in the next four years will provide

foreign banks a launch pad for greater business expansion when they get more freedom after

April 2009.

COMPANY PROFILE-V

BACKGROUND

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.


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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

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.

1.2 CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is

Rs.309.9 crore (Rs.3.09 billion). The HDFC Group holds 22.2% of the bank's equity and about

19.5% of the equity is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). Roughly 31.7% of the equity is held by Foreign Institutional

Investors (FIIs) and the bank has about 190,000 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".

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank limited (another new

private sector bank promoted by Bennett. Coleman & Co/Times Group) was merged with

HDFC Bank Ltd. effective February 26, 2000. As per the scheme of amalgamation approved

by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

received I share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added


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significant value to HDFC Bank in terms of increased branch network, expanded geographic

reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and

leverage alternative delivery channels. HDFC Bank acquired the Centurion Bank of Punjab

(CBoP) for Rs 9,510 crore which is one of the largest mergers in the financial sector in India.

1.3 DISTRIBUTION NETWORK

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

over 499 branches spread over 219 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 centers where its corporate customers are located as well as theneed 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.

The Bank also has a network of about over 1054-networked A TMs across these cities.

Moreover, all domestic and international Visa/MasterCard,' Visa Electron/Maestro, Plus/Cirrus

and American Express Credit/Charge cardholders can access HDFC Banks ATM network.

1.4 MANAGEMENT

COMPOSITION OF BOARD

The Composition of the Board of Directors of the Bank is governed by the Companies Act,

1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock


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Exchanges where securities issued by the Bank are listed. The Board has strength of 12

Directors as on March 31, 2009. All Directors other than Mr. Aditya Puri, Mr. Harish

Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank has five

independent directors and seven non-independent directors. The Board consists of eminent

persons with considerable professional expertise and experience in banking, finance,

agriculture, small scale industries and other related fields.

None of the Directors on the Board is a member of more than 10 Committees and Chairman

of more than 5 Committees across all the companies in which he/she is a Director. All the

Directors have made necessary disclosures regarding Committee positions occupied by them

in other companies.

Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Vineet Jain, Mr.

Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-independent

Directors on the Board.

Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C. M. Vasudev and

Dr. Pandit Palande are independent directors on the Board.

Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the Board of the

Bank.

Mr. Vineet Jain represents Bennett, Coleman Group on the Board of the Bank.

The Bank has not entered into any materially significant transactions during the year, which

could have a potential conflict of interest between the Bank and its promoters, directors,

management and/or their relatives, etc. other than the transactions entered into in the normal

course of business. The Senior Management have made disclosures to the Board confirming

that there are no material, financial and/or commercial transactions between them and the

Bank which could have potential conflict of interest with the Bank at large.

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Kapoor

was a Deputy Governor of the Reserve Bank of India.The Managing Director, Mr.Aditya Purl,

has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was

heading Citibank's operations in Malaysia.The Bank's Board of Directors is composed of


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eminent individuals with a wealth of experience in public policy, administration, industry and

commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience' in India and abroad head various

businesses and functions and report to the Managing Director. Given the professional

expertise of the management team and the overall focus on recruiting and retaining the best

talent in the industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY

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

and communication systems. All the bank's branches have online connectivity, which enables

the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also

provided to retail customers through the branch network and Automated Teller Machines

(ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world-class bank. In terms of

software, the Corporate Banking business is supported by Flex cube, while the Retail Banking

business by Fin ware, both from i-flex Solutions Ltd. The systems are open, scalable and web-

enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key goals

and has already made significant progress in web-enabling its core businesses. In each of its

businesses, the Bank has succeeded in leveraging its market position, expertise and

technology to create a competitive advantage and build market share


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LISTING

Indian Listing

The equity shares of the Bank are listed at the following Stock Exchanges in India :

SN. Name and address of the stock

exchange.

Stock Code

1. Bombay Stock Exchange Limited

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort,Mumbai 400 023

500180

2. The National Stock Exchange of India

Limited

Exchange Plaza, 5th Floor,

Bandra Kurla Complex,

Bandra, Mumbai 400 051

HDFC Bank


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RATINGS

CREDIT RATING

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research

Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit

programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents

instruments considered to be "of the best quality, carrying negligible investment risk". CARE

has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents

"superior capacity for repayment of short term promissory obligations". Fitch Ratings India

Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Bank's

deposit programme, with the outlook on the rating as "stable". This rating indicates "highestcredit quality" where "protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and

Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds

rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the

subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA

(ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA

[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has

assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier

II Bond issue. In each of the cases referred to above, the ratings awarded were the highest

assigned by the rating agency for those instruments.


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CORPORATE GOVERNANCE RATING

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced value

creation and corporate governance practices" in future. The bank has been assigned a

'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth

creation for all its stakeholders while adopting sound corporate governance practices is the

highest

1.8 BUSINESS

HDFC Bank offers a wide range of commercial and transactional banking services andtreasury products to wholesale and retail customers. The bank has three key business

segments:

WHOLESALE BANKING SERVICES

The Bank's target market ranges from large, blue-chip manufacturing companies in the

Indian corporate to small & mid-sized corporate and agro-based businesses. For these

customers, the Bank provides a wide range of commercial and transactional banking services,

including working capital finance, trade services, transactional services, cash management,

etc. The bank is also a leading provider of structured solutions, which combine cash

management services with vendor and distributor finance for facilitating superior supply

chain management for its corporate customers. Based on its superior product delivery /

service levels and strong customer orientation, the Bank has made significant inroads into the

banking consortia of a number of leading Indian corporate including multinationals,

companies from the domestic business houses and prime public sector companies. It is

recognized as a leading provider of cash management and transactional banking solutions to

corporate customers, mutual funds, stock exchange members and banks.


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RETAIL BANKING SERVICES

The objective of the Retail Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-stop window for all

his/her banking requirements. The products are backed by world-class service and delivered

to the customers through the growing branch network, as well as through alternative delivery

channels like ATMs, Phone Banking, Net Banking and Mobile Banking

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and

the Investment Advisory Services programs have been designed keeping in mind needs of

customers who seek distinct financial solutions, information and advice on various

investment avenues. The Bank also has a wide array of retail loan products including AutoLoans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It

is also a leading provider of Depository Participant (DP) services for retail customers,

providing customers the facility to hold their investments in electronic form

HDFC Bank was the first bank in India to launch an International Debit Card in association

with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank

launched its credit card business in late 2001. By September 30, 2005, the bank had a total

card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading

players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals

for debit / credit cards acceptance at merchant establishments.

TREASURY

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalization of the financial markets in India, corporate need more sophisticated risk

management information, advice and product structures. These and fine pricing on various

treasury products are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government


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securities. The Treasury business is responsible for managing the returns and market risk on

this investment portfolio.

HDFC Vision and Mission

Vision

HDFC has always been market-oriented and dynamic with respect to resource

mobilisation as well as its lending programme. This renders it more than capable to

meet the new challenges that have emerged. Over the years, HDFC has developed a

vast client base of borrowers, depositors, shareholders and agents, and it hopes to

capitalise on this loyal and satisfied client base for future growth. Internal systems

have been developed to be robust and agile, to take into account changes in the

volatile external environment.

HDFC has developed a network of institutions through partnerships with some

of the best institutions in the world, for providing specialised financial services. Each

institution is being fine-tuned for a specific market, while offering the entire HDFC

customer base the highest standards of quality in product design, facilities and service.

Mission

The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional

manner, and to promote home ownership. Another objective is to increase the flow of

resources to the housing sector by integrating the housing finance sector with the

overall domestic financial markets..Organizational Goals

HDFCs main goals are to a) develop close relationships with individual

households, b) maintain its position as the premier housing finance institution in the

country, c) transform ideas into viable and creative solutions, d) provide consistently


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high returns to shareholders, and e) to grow through diversification by leveraging off

the existing client base.

HDFC is a professionally managed organisation with a board of directors

consisting of eminent persons who represent various fields including finance,

taxation, construction and urban policy & development. The board primarily focuses

on strategy formulation, policy and control, designed to deliver increasing value to

shareholders.

Capital Structure

The authorised capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The

paid-up capital is Rs.282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of

the bank's equity while about 13.1% of the equity is held by the depository in respect

of the bank's issue of American Depository Shares (ADS/ADR Issue). The Indian

Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holdings Ltd.,

Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase

Capital Partners) together hold about 5.5% of the bank's equity. Roughly 27.5% of the

equity is held by FIIs, NRIs/OCBs while the balance is widely held by about 214,000

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".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co./Times Group)

was merged with HDFC Bank Ltd., effective February 26, 2004. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank ofIndia, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank. The amalgamation added significant value to HDFC Bank in

terms of increased branch network, expanded geographic reach, enhanced customer


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base, skilled manpower and the opportunity to cross-sell and leverage alternative

delivery channels.

Distribution Network

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

network of over 481 branches spread over 215 cities across the country. All branches

are linked on an online real-time basis. Customers in 90 locations are also serviced

through PhoneBanking. 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 over 1054 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 America

Express credit/Charge cardholders.


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Subsidiaries

Besides the core business of mortgages HDFC has evolved into a financial

conglomerate with holdings in

HDFC Standard Life Insurance Company - HDFC holds 79.44%

HDFC Asset Management Company - HDFC holds 50.1%

HDFC Bank - HDFC holds 22.22%

Intelenet Global (Business Process Outsourcing) - HDFC holds 50%

HDFC Chubb General Insurance Company - HDFC holds 74%

TechnologyHDFC Bank operates in a highly automated environment in terms of

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

connectivity which enables the bank to offer speedy funds transfer facilities to its

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42

customers. Multi-branch access is also provided to retail customers through the

branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best

technology available internationally to build the infrastructure for a world-class bank.

In terms of software, the Corporate Banking business is supported by Flexcube, while

the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems

are open, scaleable and web-enabled.

The Bank has prioritised its engagement in technology and the internet as one

of its key goals and has already made significant progress in web-enabling its core

businesses. In each of its businesses, the Bank has succeeded in leveraging its market

position, expertise and technology to create a competitive advantage and build market

share.

Management

Mr. Deepak S. Parekh is the executive Chairman of the Corporation. He is a

Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Parekh

joined the Corporation in a senior management position in 1978. He was inducted as a

wholetime director of the Corporation in 1985 and was appointed as the Chairman in

1993. He is the chief executive officer of the Corporation.

The Managing Director, Mr. Aditya Puri, has been a professional banker for

over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's

operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with awealth of experience in public policy, administration, industry and commercial

banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad

head various businesses and functions and report to the Managing Director. Given the


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43

professional expertise of the management team and the overall focus on recruiting and

retaining the best talent in the industry, the bank believes that its people are a

significant competitive strength.

Business Profile

HDFC Bank caters to a wide range of banking services covering both

commercial and investment banking on the wholesale side and transactional / branch

banking on the retail side. The bank has three key business areas :-

a) Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing

companies in the Indian corporate sector and to a lesser extent, emerging mid-sized

corporates. For these corporates, the Bank provides a wide range of commercial and

transactional banking services, including working capital finance, trade services,

transactional services, cash management, etc. The bank is also a leading provider of

structured solutions which combine cash management services with vendor and

distributor finance for facilitating superior supply chain management for its corporate

customers. Based on its superior product delivery / service levels and strong customer

orientation, the Bank has made significant inroads into the banking consortia of a

number of leading Indian corporates including multinationals, companies from the

domestic business houses and prime Public Sector companies. It is recognised as a

leading provider of cash management and transactional banking solutions to corporate

customers, mutual funds, stock exchange members and banks.

b) Retail Banking ServicesThe objective of the Retail Bank is to provide its target market customers a full

range of financial products and banking services, giving the customer a one-stop

window for all his/her banking requirements. The products are backed by world-class

service and delivered to the customers through the growing branch network, as well as


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through alternative delivery channels like ATMs, PhoneBanking, NetBanking and

MobileBanking.

The HDFC Bank preferred program for high net worth individuals, the HDFC

Bank Plus and the Investment Advisory Services programs have been designed

keeping in mind needs of customers who seek distinct financial solutions, information

and advice on various investment avenues. The Bank also has a wide array of retail

loan products including Auto Loans, Loans against marketable securities, Personal

Loans and Loans for Two-wheelers. It is also a leading provider of Depository

Services to retail customers, offering customers the facility to hold their investments

in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card

in association with VISA (VISA Electron) and issues the Mastercard Maestro debit

card as well. The debit card allows the user to directly debit his account at the point of

purchase at a merchant establishment, in India and overseas. The Bank launched its

credit card in association with VISA in November 2006. The Bank is also one of the

leading players in the "merchant acquiring" business with over 25,000 Point-of-Sale

(POS) terminals for debit / credit cards acceptance at merchant establishments. The

Bank is well positioned as a leader in various net-based B2C opportunities including a

wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

c) Treasury Operations

Within this business, the bank has three main product areas - Foreign

Exchange and Derivatives, Local Currency Money Market & Debt Securities, and

Equities. With the liberalisation of the financial markets in India, corporates need

more sophisticated risk management information, advice and product structures.These and fine pricing on various treasury products are provided through the bank's

Treasury team. To comply with statutory reserve requirements, the bank is required to

hold 25% of its deposits in government securities. The Treasury business is

responsible for managing the returns and market risk on this investment portfolio.


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Product Range

Savings, Fixed Deposits, Current and Demat Accounts

Savings Account:Apart from the usual facilities, you get a free ATM Card,

Interbranch banking, NetBanking, BillPay, PhoneBanking, Debit Card and

MobileBanking, among others.

HDFC Bank Preferred: A preferential Savings Account where you are

assigned a dedicated Relationship Manager, who is your one-point contact. You also

get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker

allotment, free Demat Account and lower interest rates on loans, to name a few.

Sweep-In Account:A fixed deposit linked to your Savings Account. So, even

if your Savings Account runs a bit short, you can issue a cheque (or use your ATM

Card). The money is automatically swept in from your fixed deposit into your Savings

Account.

Super Saver Account: Gives you an overdraft facility up to 75% of your

Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit

continues to earn high interest.

HDFC Bank Plus: Apart from Regular and Premium Current accounts we

also have HDFC Bank Plus, a Current Account and then some more. You can transfer

up to Rs. 50 lakh per month at no extra charge, between the four metros. You can also

avail of cheque clearing between the four metros, get cash delivery/pickup upto Rs.

25,000/-, home delivery of Demand Drafts, at-par cheques, outstation cheque

clearance facility, etc.

Demat Account: Conduct hassle-free transactions on your shares. You can

also access your Demat Account on the Internet.Innovative services for convenience...

Phone Banking:24-hour automated banking services with 39 PhoneBanking

numbers available.
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ATMs: 24-hour banking: Apart from routine transactions, you can also pay

your utility bills and transfer funds, at any of our ATMs across the country all year

round.

Inter-city/Inter-branch Banking:Access your account from any of our 481

branches in 215 cities.

Net Banking: Access your bank account from anywhere in the world, at

anytime, at your own convenience. You can also view your Demat Account through

Net Banking.

International Debit Card: An ATM card you can shop with all over the

country and in over 140 countries with. You can spend in any currency, and pay in

Rupees.

MobileBanking: Access your account on your mobile phone screen at no

airtime cost. Use SMS technology to conduct your banking transactions from your

cellphone.

BillPay: Pay your telephone, electricity and mobilephone bills through our

ATMs, Internet, phone or mobile phone. No more standing in long queues or writing

cheques.

Loans come to you in easy-to-pay monthly installments, and are available with

easy documentation and quick delivery.

Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education,

purchase of a computer or an exciting holiday.

New Car Loans and Used Car Loans:Finance up to 90% of the cost of a car,

new or used! And the loans come to you with easy documentation and speedy

processing at attractive interest rates.Loans Against Shares: Get an overdraft up to Rs. 10 lakh at an attractive

interest rate against physical shares, up to 50% of the market value of your shares. In

case of Demat Shares, you can get a Loans Against Shares of up to 65% of the market

value of your shares, till Rs. 20 lakh.
http://www.hdfcbank.com/Ri/RI-EAGE-ATM-intro.htmhttp://www.hdfcbank.com/RI/RI-branch1.htmhttp://www.hdfcbank.com/RI/RI-branch1.htmhttp://www.hdfcbank.com/ri/RI-EAGE-NETBK-intro.htmhttp://www.hdfcbank.com/ri/RI-EAGE-NETBK-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-INT-DEBIT-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-INT-DEBIT-intro.htmhttp://www.hdfcbank.com/ri/RI-EAGE-MobileBanking-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-BP-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-BP-intro.htmhttp://www.hdfcbank.com/ri/RI-loan-personal-intro.htmhttp://www.hdfcbank.com/ri/RI-loan-personal-intro.htmhttp://www.hdfcbank.com/RI/RI-loan-newcar-intro.htmhttp://www.hdfcbank.com/ri/RI-LOAN-USED-CAR-intro.htmhttp://www.hdfcbank.com/ri/RI-LOAN-USED-CAR-intro.htmhttp://www.hdfcbank.com/RI/RI-LOAN-LAS-intro.htmhttp://www.hdfcbank.com/RI/RI-LOAN-LAS-intro.htmhttp://www.hdfcbank.com/RI/RI-LOAN-LAS-intro.htmhttp://www.hdfcbank.com/ri/RI-LOAN-USED-CAR-intro.htmhttp://www.hdfcbank.com/RI/RI-loan-newcar-intro.htmhttp://www.hdfcbank.com/ri/RI-loan-personal-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-BP-intro.htmhttp://www.hdfcbank.com/ri/RI-EAGE-MobileBanking-intro.htmhttp://www.hdfcbank.com/RI/RI-EAGE-INT-DEBIT-intro.htmhttp://www.hdfcbank.com/ri/RI-EAGE-NETBK-intro.htmhttp://www.hdfcbank.com/RI/RI-branch1.htmhttp://www.hdfcbank.com/Ri/RI-EAGE-ATM-intro.htm


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Two Wheeler & Consumer Loans: To help you buy the best durables for

your home.

Demat Account: Protect your shares from damage, loss and theft, by

maintaining your shares in electronic form. You can also access your demat account

on the internet.

Current Account: Get a personalised cheque book, monthly account

statements, inter-branch banking and much more.

Mutual Funds: Apart from a wide choice of mutual funds to suit your

individual needs, you benefit from expert advice on choosing the right funds based on

in-depth market analysis.

International Credit Card: Get an option of Silver, Gold, or Health Plus

Credit card, accepted worldwide from a world-class bank. If you have outstanding

balance on your other credit card, you can transfer that balance to this card at a lower

interest rate.

NRI Services: A comprehensive range, backed by unmatched features and

world-class service, ensures NRIs all the banking support they need.

Forex Facilities: Avail of foreign currency,travelers cheques, foreign

exchange demand drafts, to meet your travel needs.

Insurance*: HDFC Bank now brings you Life Insurance and Pension

Solutions like Risk Cover Scheme, Savings Scheme, Childrens Plan and Personal

Plan from HDFC Standard Life Insurance Co. Ltd.

*Insurance is the subject matter of solicitation.
http://www.hdfcbank.com/RI/RI-loan-consumer-intro.htmhttp://www.hdfcbank.com/RI/RI-loan-consumer-intro.htmhttp://www.hdfcbank.com/ri/ri-pb-de-intro.htmhttp://www.hdfcbank.com/ri/ri-pb-de-intro.htmhttp://www.hdfcbank.com/ri/ri-pb-cur-reg-intro.htmhttp://www.hdfcbank.com/ri/ri-pb-cur-reg-intro.htmhttp://www.hdfcfund.com/http://www.hdfcfund.com/http://www.hdfcbank.com/creditcard/cc_home.asphttp://www.hdfcbank.com/creditcard/cc_home.asphttp://www.hdfcbank.com/nri/nri-home.htmhttp://www.hdfcbank.com/nri/nri-home.htmhttp://www.hdfcbank.com/nri/nri-vas-forex.htmhttp://www.hdfcbank.com/nri/nri-vas-forex.htmhttp://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.hdfcbank.com/nri/nri-vas-forex.htmhttp://www.hdfcbank.com/nri/nri-home.htmhttp://www.hdfcbank.com/creditcard/cc_home.asphttp://www.hdfcfund.com/http://www.hdfcbank.com/ri/ri-pb-cur-reg-intro.htmhttp://www.hdfcbank.com/ri/ri-pb-de-intro.htmhttp://www.hdfcbank.com/RI/RI-loan-consumer-intro.htm


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CHAPTER-3

Questionnaire-

PART1

AGE GROUP

Below 20

2030

3040

Above 40

GENDER

Male

Female

RELATIONSHIP STATUS-

Single

Married

OCCUPATION - ________________________________________________

INCOME GROUP (ANNUALY)

Below 1 lac


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1-3 lac

3-6 lac

6-10 lac

Above 10 lac

PART2

1) In which bank do you have an account presently?

State Bank Of India

Punjab National Bank

ICICI

HDFC

None of the above

2) Are you aware of the New HDFC Branch opened in your Locality?

Yes

No

3) If yes, do you wish to avail its services?

Yes

No

Cant Say


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4) Does the opening of this branch made an impact on you as a customer?

Yes

No

Cant Say

Is the location of the new branch easily accessible to the customers with regard to the

population of the area?

Yes

No

Cant Say

5) Have you ever visited HDFC bank to have an idea about the various services offered by it as

compared to other banks?

Yes

No

6) If yes, which service allures you the most?

Net Banki

E-

ATM Service


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7) Are you satisfied by the time taken by the bank employees to deliver you the services?

Yes

No

Cant Say

8) How do you rate the services of Private Sector bank as compared to Public Sector banks?

Satisfactory

Unsatisfactory

No Difference

9) Do you think there is a difference in the attitude of Private Sector bank employees, in

comparison to Public Sector Bank employees while dealing with customers?

Yes

No


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CHAPTER-V

DATA ANALYSIS AND INTERPETATION

Gender of the Respondents

Sample Size

82%

18%

MALE

FEMALE


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Males 112 (82%) and Females 24 (18%).

Thus, majority of the respondents were male with a small percentage of females.

Mostly the male respondents were retail owners, business men & students.

Females comprise of home- makers, students and working women.


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Age group of the Respondents -

AGE GROUP

Below 20

10%

20-30

29%

30-40

30%

above 40

31% Below 20

20-30

30-40

above 40

AGE GROUP RESPONDENTS

Below 20 13 (9.55%)

20- 30 39 (28.67%)

30-40 41 (30.14%)

Above 40 43 (31.64%)


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On the bases of Gender Respondents

Below 2020- 30

30- 40Above 40

Females

Males0

5

10

15

20

25

30

35

40

Respondents

Age Group

Females

Males

Bulk of the Male Respondents belongs from the Age Group of 20 to above 40 years.

Female respondents are generally low a compared to male respondents


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Banks in which the Respondents operate

ICICI

8.82%

PNB

22.05%

ANY

OTHER

BANK

22.82%

HDFC

8.08%

SBI

38.23%

BANK

ACCOUNT


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Some reasons for the better performance of public banks

Respondents were conservative and viewed Public sector banks to be more secure

investment avenue.


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On the bases of Age Group banks with which Respondents

already Operate, belong to

0

5

1015

20

25

30

35

40

No. of

Respondents

Below 20 20-30 30-40 40 Above

Age Group Public Bank

Private Bank

Thus, we can see that among all age groups respondents still prefer Public Banks to

Private Banks.

Large percentage is observed among the age of 30 and above having preference for

Public Banks.

Younger generation is showing a trend of moving towards Private Banks.


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Does the opening of this branch made an impact on you as a

customer?

Respondents have a positive approach toward the opening of this Branch.

As directly or indirectly it will influence there bank dealings.

Is the location of the new branch easily accessible to the

customers with regard to the population of the area?

YES-

56.61%

NO-

29.41%

CANT SAY-

13.98%


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Residents of Himayathnagar are generally pleased with the location of the bank with

regard to the population of the area.

YES 77.94%

NO 8.24%

CANT SAY

13.82%


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Number of people aware and are ready to avail the services of

this new branch-

Sample

Size- 136

Aware of

opening of

HDFC Bank-

108

New

Customers-

59


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Thus, from a sample of about 136 respondents if 59 are interested to avail the services of the

branch at Himayathnagar. Therefore, in a span of short time it can increase its customer base

and provide various innovative services that attract them to open an account in HDFC.

And a lot many were confused because they are already availing the services of their

previous bank.

Among the Respondents interested in availing the services of the

newly opened HDFC Branch belonged to following Age Group-

Below 20

20-3030-40

Above 40

People are geared up to move towards Private Banks.

The stereotyped that public banks are more safe is changing slowly.


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Services that allure the customers more are

SERVICES

PROVIDED

NET-BANKING

11.86%

MOBILEBANKING

15.25%

E-PAYFACILITY

11.86%

SMSFACILITY

16.84%

LOCKERFACILITY

11.86%

CREDITCARD

10.16%

ATMSERVICE

8.47%

LOANS

13.55%


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Services opted by Females and Males

Services Offered Females Males

Net Banking 1 6

Mobile Banking 0 9

E- Pay Facility 0 7

SMS Facility 1 9

Locker Facility 5 2

Credit Card 1 5

ATM Service 2 3

Loans 2 6


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Females are mainly attracted towards the locker, ATM ,& the Loan facility provided

by the bank so more emphasis should be paid on these services.

Whereas, Males are allured by Mobile Banking, SMS Facility, E-Pay Facility, Net

Banking and Loan Facility, they are not so much attracted toward the ATM or Locker

Facility because almost all the banks provide these services efficiently.

Thus, bank should bank upon these avenues to enlarge its customer base.


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Graphical representation-

NetBanking

MobileBankin

g

E-

PayFacility

SMSFacility

LockerFacility

CreditCard

ATMS

ervice

Loans

FemalesMales

0

2

4

6

8

10

No. of

Respondents

Services Offered

Females

Males


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Are customers satisfied by the time taken by the bank employees

to deliver you the services?

Respondents are on the whole satisfied by the time taken by the bank employees to

deliver them the requisite service.

But a lot needs to be done in this regard as it can gain you customers and you can also

loose them at one go.

Thus, proper training should be provided to the employees to tackle the customers

and also retain them.

NOYES62.5%

CANT SAY

24.26 %


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Rating of the services of Private Sector bank as compared to

Public Sector banks

1. Satisfactory- Majority view the services of a private sector bank Satisfactory.

2. Unsatisfactory- A very low percentage of people find the services of a Private Sector Bank

Unsatisfactory.

3. No Difference- Substantial amount of people find no difference in the services provided by

both Private and Public Sector Banks.

Do you think there is a difference in the attitude of Private Sector

bank employees, in comparison to Public Sector Bank employees

while dealing with customers?

0

1

2

3

1 9 17 25 33 41 49 57 65 73 81 89 97

Respondents

Satisfaction

Level


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1.YES 2.No 3.CANT SAY

Thus, majority of the respondents agreed to the fact that there is a difference in the

attitude of employee of a private sector bank and a public sector bank.

Hence HDFC can build upon its human capital by providing proper training, so that

customers are happy when they go back. This helps in spreading goodwill and help in

Image building, which ultimately leads to increased customer base

0

1

2

3

R1

R8

R15

R22

R29

R36

R43

R50

R57

R64

R71

R78

R85

R92

R99

Respondents

LikertSca

le


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CHAPTER-VII

FINDINGS

They still undertake most of the government borrowing programmes,

thereby generating significant fee based income;

The market discipline imposed by the listing of most public sector banks

has also probably contributed to this improved performance; and

The reform measures have changed their business strategies particularly

greater diversification of non-fund based business and emergence of

treasury and foreign exchange business.

Private sector Banks have pioneered internet banking, phone banking, anywhere

banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and

combined various other services and integrated them into the mainstream

banking arena, while the PSBs are still grappling with disgruntled employees in

the aftermath of successful VRS schemes. Also, following India's commitment

to the WTo agreement in respect of the services sector, foreign banks, including

both new and the existing ones, have been permitted to open up to 12 branches a

year with effect from 1998-99 as against the earlier stipulation of 8 branches.


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SUGGESTIONS

Bank shall plug the gap between the demand and capture new customer base in

the area.

Since the credit cards are in the vogue these days in the AP region and the

consumers here are very excited about them; as they are newly exposed to it; bank

shall focus its efforts to market its credit cards as bank offers world class services

which is HDFC bank's unique selling point on which the bank can really cash on.

The bank can start providing service like Mobile banking, Net banking and Bills

payment, as the study suggests that there is awareness about the service in the

consumers. This will give bank an advantage of becoming a market leader in the

region.

The demand for loans offered by the banks exists in the market although the

numbers showing their using it are very low. Bank can go ahead and can cash on it

by going to the consumers and informing them that HDFC Bank also do offer these

services better than its competitors.


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CONCLUSIONS

There is a need of constant innovation in retail banking. In bracing for tomorrow, a

paradigm shift in bank financing through innovative products and mechanisms

involving constant up gradation and revalidation of banks internal systems and

processes is called for.

Banks now need to use retail as a growth trigger. This require product development

and differentiation, innovation and business process reengineering, micro-planning,

marketing, prudent pricing, customization, technological up gradation, home /

electronic / mobile banking, cost reduction and cross selling.

While retail banking offers phenomenal opportunities for growth, the challenges are

equally daunting. How far the retail banking is able to lead growth of the banking

industry in future would depend upon the capacity building of the banks to meet the

challenges and make use of opportunities profitably. However, the kind of the

technology used and the efficiency of operations would provide the much-needed

competitive edge for success in retail banking business.

Furthermore, in all these customers interest is of paramount importance. The banking

sector in India is demonstrating this and I do hope they would continue to chart in this

traded path.


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CHAPTER-VII

BIBLIOGRAPHY

www.hdfcbank.com

www.icicibank.com

www.statebankofindia.com

finance.indiamart.com/...in.../private_sector_banks.html
http://www.hdfcbank.com/http://www.icicibank.com/http://www.statebankofindia.com/http://www.statebankofindia.com/http://www.icicibank.com/http://www.hdfcbank.com/

sarath hdfc crm report

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