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A
PROJECT REPORT
ON
“PROSPECTIVE MARKET POTENTIAL FOR CORPORATE ACCOUNTS OFFERED BY BANKS.”
FOR
HDFC BANK
BY
ANUJ SHUKLA
UNDER THE GUIDANCE OF
“Prof. SUNIL DOKE”
SUBMITTED TO UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTERS IN BUSINESS ADMINISTRATION (M.B.A.)
BRACT’s
VISHWAKARMA INSTITUTE OF MANAGEMENT
KONDHAWA
PUNE- 411048
2
ANNEXURE
3
Questionnaire
1. Company Name: ____________________________________________
2. Industry
A) Electric and Electronics
B) Information Technology
C) Automobile
D) Pharmaceutical
E) Infrastructure
F) Telecommunication
g) Others: please specify __________________________________
3. Contact Person: _____________________________________________
4. Designation: ________ _______________________________________
5. Contact Number: ____________________________________________
6. e- Mail id: _________________________________________________
7. No. of Employees: __________________________________________
8. Current Banker: _____________________________________________
9. Total salary uploaded recently/ Avg. Salary of all employees:
_________________________________________________________
10. Special offer provided from existing bank:
a) P.L. Rate: __________________________________________
b) H.L Rate: __________________________________________
c) Vehicle loan Rate: ___________________________________
d) Others: ____________________________________________
4
11. Are you satisfied with existing Banker?
a) Yes b) No
12. Do you expect better products and services from your banker?
a) Yes b) No
13. How is the Relationship between you & your Bank?
a) Excellent
b) Good
c) Satisfactory
d) Unsatisfactory
14. Did you change your banker recently?
A) Yes b) No
15. If yes: From - ____________________________________________
To - ____________________________________________
16. How is Customer Responsiveness of your Bank?
a) Good
b) Satisfactory
C) Unsatisfactory
17. Would you like to shift to other Bank, if provided better product &Services?
a) Yes b) No
5
18. Given options, which Bank, you would like to shift?
Please mention: ___________________________________________
Date -
Place –
Thank you Signature
6
7
ACKNOWLEDGEMENT
“Gratitude is the hardest of emotions to express as one does not find adequate
words to convey what one feels.”
It’s my pleasant duty to articulate my deep sense of gratitude to my
research supervisor Mr. SUNIL DOKE Vishwakarma Institute of Management,
Pune University for his constant and sagacious guidance during the course of this
investigation. Without his scholarly advice and kind co-operation it would not
have been possible for me to complete this project in the present form.
I am profoundly grateful to Mr. RELOJ BALAKRISHNAN
(CORPORATE SALARY A/C MANAGER) for helping me in collecting the
data for the project and for giving me timely guidance and motivation for
completing the project work.
I extend my respectful thanks to all respondents for providing me the
necessary information in spite of there very busy schedule.
Last, but not the least, I am really dearth of words to venerate my parents
whose steady efforts and motivation helped me to accomplish this work
successfully.
I assure that all the information provided by me is original and
authenticated.
(ANUJ SHUKLA)
8
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. Anuj Shukla is a bonafide student of our institute. He
has successfully carried out his summer project on “ PROSPECTIVE MARKET
POTENTIAL FOR CORPORATE ACCOUNTS OFFERED BY BANKS.” at
HDFC BANK
This is the original study of Mr Anuj Shukla & important sources of data used by
his have been acknowledged in this report.
The report is submitted in partial fulfilment of two years full time course on
Master of Business Administration (M.B.A) 2006-2008 as per the rules.
Prof. Sunil doke Dr. Sharad
Joshi
(Project Guide) (Director)
9
TITTLE INDEX
S. NO. TOPIC PAGE NO.
1. Executive Summary 1-3
2. Company Profile 4-13
3. Objective & Scope of the study 14-16
4. Research Methodology 17-19
5. Theoretical Background 20-25
6. Data Analysis & Interpretation 26-56
7. Findings & Conclusions 57-59
8. Suggestions &recommendation 60-61
9. Limitations 62-63
10. Bibliography 64-65
10
LIST OF TABLES AND CHARTS
Sr.
No.
Table
No.
Table/ Chart Page No.
1 01 Market coverage of the competitive banks
including HDFC bank Ltd
28-29
2 02 Market potential for various corporate salary
account
30-31
3 03 Customers selection parameters of HDFC bank
Ltd
32-33
4 04 Customers prime requirement in corporate
salary account
34-35
5 05 A A comparative analysis of competitive banks in
Regards with facility of net banking
36-37
6 05 B A comparative analysis of competitive banks in
Regards with facility of mobile banking
38-39
7 05 C A comparative analysis of competitive banks in 40-41
11
Regards with facility of ATM network
8 05 D A comparative analysis of competitive banks in
Regards with facility of sales force
42-43
9 06 Key factors that converts a satisfied customer
into a loyal customer
44-45
10 07 Table of customer’s preferred bank
46-47
11 08 Customer’s satisfaction with the service provided by HDFC bank ltd
48-49
12 09 Customer satisfaction with account opening
criteria
50-51
13 10 The most effective means of communication
52-53
14 11 strengthens and weakness of HDFC bank score
card
54-56
12
13
CHAPTER-1
EXECUTIVE SUMMARY
14
Executive Summary
A new private sector Bank promoted by housing Development Corporation Ltd.
(HDFC), a premier housing finance company. The bank is the first of its kind to
receive an in-principle approval from the RBI for establishment of a bank in the
private sector. Certificate of Commencement of Business was received on 10th
October 1994 from RBI and the bank was opened by the then finance minister Mr.
Manmohan Singh. The Bank transacts both traditional commercial banking as
well as investment banking. HDFC, the promoter of the bank has entered into an
agreement with National Westminister Bank Pc. and its subsidiaries (Natwest
Group) for subscribing 20% of the banks issued capital and providing technical
assistance in relation to the banks proposed banking business. The Bank opened
its first branch in Ramon House at Church gate, Mumbai on January 16th 1995.
Subsidiaries and associate companies of HDFC include HDFC Bank HDFC
Mutual Fund, HDFC Standard Life Insurance, HDFC Realty HDFC Chub General
Insurance Company Ltd. Intel net Global Services Ltd. and Credit information
Bureau (India) Limited. HDFC Bank offers various products for retail customers.
It provides the customers with Savings and Current Accounts, Fixed deposits
loans and credit and debit cards. It also provides with Investment, payment, Forex
and insurance services. HDFC Bank has gone on to win several awards right from
the best bank in private sector to best bank in the country. It has received awards
from NASSCOM, Economic Times, Business Today, Forbes Global, Business
World, Asian Banker’s Excellence award and many others. HDFC Bank is one of
the major players in the corporate accounts segment in the country. In PUNE there
are three major players in the corporate account segment; viz. Citibank, ICICI
Bank and HDFC Bank. PUNE is known as the one of the Information Technology
15
hub of India, and therefore these IT equipped organizations and software
companies and also some small corporate were the focus of the study. The study
was about these organizations and the relationship that they share with the bank
that provides them with the corporate accounts for their employees. The study was
also to check the willingness of the organizations to go to a new bank if the bank
provided them with better products and services.
16
CHAPTER-2
COMPANY PROFILE
17
HDFC – The Organisation
Background HDFC was incorporated in 1977 with the primary objective of meeting a social
Need – that of promoting home ownership by providing long-term finance to
households for their housing needs. HDFC was promoted with an initial share
capital of Rs. 100 million.
Business Objectives
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.
Organisational Goals
HDFC’s 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 high returns to shareholders, and e) to grow through diversification by
leveraging off the Existing client
18
HDFC Bank
The Organisation. 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 liberalisation 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 on 16th
January 1995. In the year 1998 HDFC Bank had tied up with the Ahmadabad
Stock Exchange (ASE) to act as its clearing bank
. 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
Management
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this,
Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing
Director, Mr. Aditya Puri, has been a professional banker for over 25 years and
19
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 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.
The management consists of the Chairman Mr Jagdish kapoor and 9 other
Directors that assist him in achieving objectives of the bank.
i. Mr. Jagdish apoor
ii. Mr. Aditya Puri
iii. Mr. Keki M. Mistry
iv. Mr. Vineet Jain
v. Dr. Venkat Rao Gadwal
vi. Mrs. Renu Karnad
vii. Mr. Arvind Pande
viii. Mr. Bobby Parikh
ix. Mr. Ranjan Kapur
x. Mr.Ashim Samanta
20
Businesses
HDFC Bank offers a wide range of commercial and transactional banking services
and treasury 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 the small & mid-sized corporate and agri-based
businesses. The Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. It 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.
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 through alternative delivery channels like ATMs, Phone Banking,
Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading
21
provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.
Products and Services – HDFC Bank
Product range: The following is the product range offered at HDFC: While
various deposit products offered by the bank are assigned different names, the
deposit products can be categorised broadly into the following types. Definition of
major deposit schemes are as under: -
1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdrawable
on demand like Savings A/c.
2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed period withdraw
able only after the expiry of the fixed period and includes deposits such as
Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly
Income Certificate / Quarterly Income Certificate etc.
3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be
withdrawn on giving at least one complete banking day's notice.
4. Current Account:
"Current Account" means a form of Demand Deposit wherefrom withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are
neither Savings Deposit nor Term Deposit; The account holder gets a personalized
cheque book, monthly account statements, and Inter-branch banking.
22
5. Corporate Account:
These are more commonly known as Salary Accounts. These are account in
HDFC bank with zero balance. These are given to salaried people. These accounts
are opened by the employer for the employees to deposit the salary of the
employee directly to the account.
6. HDFC Bank Preferred: A preferential Savings Account where in, one is assigned with a dedicated
Relationship Manager, who’s you’re the one point contact. One also get privileges
like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free
Demat Account and lower interest rates on loans.
7. Sweep-In Account:
A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings
Account runs a bit short, one can issue a cheque (or use ATM Card). The money
is automatically swept in to one’s Savings Account from one’s Fixed Deposit
Account. The excess funds in the account are directly transferred to the fixed
deposit account of the account holder.
8. Super Saver Account:
It gives one an overdraft facility up to 75% of one’s fixed deposit. In an
emergency, you can access your funds while your fixed deposit continues to earn
high interest.
9. HDFC Bank Plus:
Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank
Plus, a Current Account and then something extra for the HDFC bank customers.
23
One can transfer up to Rs. 50 lakh every month at no extra charges, between the
four metros. One can also avail cheque clearing between the four metros, get cash
delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts, at-par
cheque, outstation cheque clearing facility, etc.
10. Demat Account:
One can conduct hassle-free transactions on the stock market for one’s shares. The
shares held by the customer are protected from damage, loss and theft, by
maintaining these shares in electronic form. This account can be accessed through
Internet too.
11. Loans:
There are a variety of loan schemes offered like personal loans, new car loans,
used car loans, loan against shares, consumer loans, two wheeler loans, and home
loans. These are available with easy payback in monthly instalments. Loans are
sanctioned with easy documentation and quick delivery
Services offered
Following are the services offered at HDFC bank for its esteemed customers
i. Phone Banking: Round the clock automated banking services with 39 phone banking numbers
available as customer help-line. A customer can call in any time and get help
no matter where he may be without any time barrier.
ii. ATM banking:
HDFC bank brings 24-hour banking for it customers. 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.
24
iii. Mobile Banking:
A customer can access his account on mobile phone at no extra air-time cost.
One’s banking transactions are just an SMS away
iv. Inter-city/Inter-branch Banking:
One can access one’s account from any of the HDFC’s 347 branches in 174
cities. Other than that the customer can access their accounts at any of the
ATM canters across the country.
v. International Debit Card:
An ATM Card one can shop with all over the country and in over 140
countries other than India. One can spend any currency depending on the
country he/she is in, and have the money in rupees in the account here in
India.
vi. International Credit Cards:
HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are
accepted worldwide. If one has outstanding balance on one’s other credit card,
one can transfer that balance to this card at a lower interest rate.
vii. Mutual Funds:
Apart from a wide choice of mutual funds to suit any consumer needs, one
benefit from expert advice on choosing the right funds based on in-depth
market analysis by experts.
viii. NRI Services:
A comprehensive range backed by unmatched features and world-class service
ensures NRIs all the banking support they need.
25
ix. Utility Payments made easy:
One can pay utility bills like telephone bills, electricity bills and mobile phone
bills through our ATMs, Internet, phone or mobile phone. Gone are the days
when one stood in long queues and wrote cheque.
x. FOREX Facilities:
Avail foreign currency exchange, travellers’ cheques, and foreign exchange
demand drafts to meet your needs while travelling abroad.
xi. Insurance:
HDFC bank also brings you Life Insurance and Pension Solutions like Risk
Cover
Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std.
Life Insurance Company Limited.
26
CHAPTER-3
OBJECTIVE AND SCOPE OF THE STUDY
27
Objective of The Project
Learning in the classroom is partial unless it is added with practical experience
and training. Training is the most important part of learning in any technical and
professional education. Exposing the young prospective executive to the actual
business industrial environment not only broaden their horizon but also helps
them to effectively grasp the various angels of business. That will beneficial for
them when they actually come to occupy the execrative position. It is an aim that
practical training of small duration obviously had been made valuable and
indispensable of the MBA degree.
Hence the objective of the project is:
1. To get the practical knowledge about the market research.
2. To find prospective customer for the HDFC bank and to find the product
potential in the market.
3. To make customer informative about the technology offered.
4. To make recommendation and suggestion about the scope and Feasibility for
HDFC product.
Objective of study
Primary: -
1. Analysis and evaluation of customer s satisfaction with respect to product
performance.
2. To determine the main characteristic which customers look upon while
purchasing and selecting the product?
3. To determine the other brand those are competing with the same product rang.
28
Secondary: -
1. Service level and channel associate approach.
2. To find the level of brand awareness.
3. To find out the company market share.
Scope of study
i. Special area to be focused for increasing the sales and for sales promotion
activities to be adopted.
ii. To make product more innovative and easy to understand
iii. For providing maximum satisfaction to the customer by knowing their
needs and requirement about product and services.
iv. Steps to be taken at present for survival and facing the competition with
other equivalent product.
v. Continues improvement and for better management.
vi. Maintaining good relation between manager and customer
Sample Size The sample size of the project is 550 corporate clients.
29
CHAPTER-4
RESEARCH METHODOLOGY
30
Methodology of the study
Research Methodology
Research as a mean of getting knowledge can be carried out either arbitrarily or in
a systematic fashion. It is a purposive investigation.
Research may be a mean to know the small change and time forced upon us as
individual or as a society. Research as process involves defining the problem,
formulating the hypothesis, organizing and evaluating the data, deriving inference
and conclusion after careful testing.
Data Collection
As data is required for any research activity, it is collected (for those
Both the Primary and Secondary) as follows:
Primary Data:
I have collected this data through discussion with officers
Secondary Data:
This data is collected from different sources available consolidated
From book publication reports, websites where used as a source of secondary data
in order to do this project and to collect necessary data. I have used the manuals
and leaflets of the bank
Rationality of the study
i. The customer s satisfaction survey gives the company the clear idea of
the weakness and strength that will help the company in deciding their
future strength.
ii. It will give update database of its prospective customers in Pune Region.
31
iii. Sales process will be possible to improve the basis of information received
through study.
iv. It will help the company to know the science of the customers in the
market.
v. It will provide company information about level of satisfaction among
customers for the after sales service and make company possible to
improve in the weak area and also to help capitalize on weak area of
competitors.
32
CHAPTER-5
THEORETICAL BACKGROUND
33
Corporate Accounts
Introduction When an organization opens a HDFC Bank Corporate Salary Account it not only
gives its employees more than just an account. They get a host of e-Age Banking
facilities such as Free Net Banking, Phone Banking, Mobile Banking,
International Debit Card (valid in 140 countries) and Bill Pay. And along with that
free Demand Drafts and preferential interest rates on Personal Loans.
An organization will be giving its employees an account that makes banking a
pleasure for them. The organization would have also saved time and money by
directly crediting their employee salaries nation-wide at one go.
Advantages To the Employer
HDFC Bank Salary Accounts benefits the employer by :-
i. Reduces your paperwork.
ii. Saves remittance costs.
iii. Employees receive instant credit of salaries.
iv. More convenient than ECS.
Advantages to the Employees
i. Zero Balance Account
The employee does not have to maintain any minimum balance in the account.
34
ii. Free Debit Card
The employees do not have to pay the annual fee for their Debit Cards.
Additionally, the first year annual fee is also waived for one additional account
holder, as in the case of a savings account holder. This plus all the other Debit
Card benefits are available to your employees.
iii. Free Inter-city/Branch banking
There is no cap on the transaction size for inter-branch/city transactions for your
employees. The fees associated are also waived. They can perform the following
transactions:
• Cash withdrawal: Customer presence required.
• Cash deposit: Customer presence required
• DD/MC issuance: Customer presence required
• Cheque deposit: Customer presence not required
• Any other written instructions: Customer presence not required
• This facility is not extended to premature withdrawal of Fixed Deposits
iv. Free Demand Drafts
Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any of
the HDFC Bank branch locations. This offer can be availed of through Phone
Banking or Net Banking or at the branch. The amount of the Demand Draft will
be debited to the salary account. Please note: DDs drawn on correspondent bank
will attract full charges
v. Cash delivery
If there isn't a HDFC Bank that is easily accessible from your office, we will
deliver cash against cheques from the employees once a week subject to a
maximum of twice a week. Maximum amount of withdrawal per employee is Rs
35
10,000, minimum Rs 1,000/-. This service is currently available in Mumbai,
Delhi, Chennai, Hyderabad, Bangalore, Pune and Ahmadabad.
vi. Overdraft facility
Employees with a salary account are eligible for this facility: Employees with a
"Net Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean
overdraft facility on the savings account @ 18%. Please note: The employee has
to sign an indemnity bond and give a copy of the latest salary slip.
vii. Discounts on loans
Your employees can avail of the benefits of preferential pricing on our asset
products, namely Loans against Securities, Car Loans and Personal Loans All
loans at discretion of the bank.
36
Salary Accounts – How it all works
The banks approach the corporate houses and present them with the various salary
products that are offered by the bank. The organizations then, choose the bank and the
product from the various options that are offered to them. These organizations have
an association with one of the banks providing salary products
Types:
There are various types of Salary Accounts that are offered by HDFC Bank for
different class of people in the society. Keeping the need of the customer in mind,
various types of accounts are designed and offered to the corporate that choose the
salary account for their employees.
i. Payroll
The HDFC Bank payroll account offers flexibility as well as access to premium
features like Bill Pay, Insta Alert at a nominal charge. One can also access their
account anytime by phone or through the Internet and pay for their utility bills at a
nominal charge.
ii. Classic
The Classic Salary account is a Zero Balance Account which earns the account holder
interest on his savings from salary at a competitive rate fixed by the bank from time to
time. There is no fee applicable for branch transactions and he receives banking
statements once every six months.
37
iii. Regular
The Regular account is a Zero Balance account and comes with a Free International
Debit Card, facilities like free inter-city/branch banking and Safe Deposit lockers
(subject to availability).s
iv. Preium
A power-packed account for successful salaried professionals, the Premium Salary
account comes with a free International Debit Card and add-on Debit card for life,
with the option of choosing between a Silver or Gold credit card at preferential
rates.
v. Defence Salary Account
This account is designed specifically for Defence personnel’s. The Account is a
Zero Balance Account and comes with a free International Debit Card.
38
CHAPTER-6
DATA ANALYSIS AND INTERPRETATION
39
DATA ANALYSIS
INTRODUCUION
Data analysis and interpretation plays an important role in turning quantity of
paper into defensible, actionable sets of conclusions and reports. It is actually a set
of method and technique that can be used to obtain information and insights from
data.
It can lead the researcher to information and insights that would not be available.
It can help to avoid erroneous judgments and conclusion. It can provide a
background to help interpret and understand analysis conducted by others.
Knowledge of power of data analysis techniques can constructively influence
research objectives and research design.
40
DATA TABLE NO 1
MARKET COVERAGE OF THE COMPETITIVE BANKS INCLUDING
HDFC BANK LTD
BANK NAME NO OF
RESPONDENTS PERCENTAGE OF RESPONDENTS
HDFC 22 22% ICICI 25 25% UTI 14 14% CO-OPERATIVES 9 9% OTHERS 8 8% POTENTIAL MARKET
22 22%
TOTAL 100 100%
INTERPRETATION
i. ICICI Bank Ltd scores top position in market coverage of
corporate salary account in Pune Region
ii. HDFC Bank gets a second position
iii. The amount of potential market is as high as the market share of
HDFC Bank i.e. 22%
41
GRAPH NO 1
MARKET COVERAGE OF THE COMPETITIVE BANKS
ICICI25%
HDFC22%UTI
14%CO
OPERATIVES9%
OTHERS8%
POTENTIAL MARKET
22%
ICICI HDFC
UTI CO OPERATIVES
OTHERS POTENTIAL MARKET
42
TABLE NO 2
MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY
ACCOUNT
Types of accounts No of Companies Percentage of companies
Premium Account 26 26%
Regular Account 74 74%
Total 100 100%
INTERPRETATION
i. Out of the companies visited, companies with a average salary of
Rs.25000 and No of Employee 15 are 26%.
ii. Out of the companies visited, companies with a average salary of
Rs.15000 and No of Employee 15 are 74%.
43
GRAPH NO 2
MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY
ACCOUNT
PREMIUM26%
REGULAR74%
PREMIUM REGULAR
44
TABLE NO 3
CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD
PARAMETERS OF
BANK SELECTION
PERCENTAGE OF
CUSTOMER CHOICE
BRAND NAME 23.60%
PERVIOUS
EXPERIENCE
22.40%
RELIABILITY 22.10%
EASY ACCESS 19.80%
COMPANY POLICY 14.10%
INTERPRETATION
i. Brand Name of a bank has the greatest impact on the customer in
regards with Bank Selection Parameters. (24%)
ii. Pervious Experience and Reliability about the bank get equal score of
22% each.
iii. Followed by Easy Access (20%)
iv. Company (Applicant company) policy (14%)
45
GRAPH NO 3
CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD
24%
22%
20%
20%
14%
BRAND NAME PREVIOUS EXPERIENCE RELIABILITY EASY ACCESSCOMPANY POLICY
46
TABLE NO 4
CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY
ACCOUNT
BASIC FACILITIES IN CS
ACCOUNT
PERCENTAGE OF
RESPONDENTS
ZERO BALANCE 100%
ATM NETWORK 85%
NET BANKING 68%
BILL PAYMENT 34%
INTERNATIONAL DEBIT CARD 45%
INTERPRETATION
i. Zero Balance facility is a must have feature of salary account (100%)
ii. ATM Network facility get a second position with 85% of the
respondents opting for this option
iii. Net Banking facility is mostly opted by those employees who are from
the IT or Software Companies due to the nature of work culture and
easy access of net. (68%)
iv. International Debit Card facility is opted fro only when its given as an
additional feature and free of any hidden cost. This facility is generally
opted for the employees who are at a higher position. (45%)
v. Bill Payment facility is the least opted facility as it comes with some
amount of extra charges.(34%)
47
GRAPH NO 4
CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY
ACCOUNT
100%
85%
68%
34%
45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ZERO BALANCE
ATM NETWORK
NET BANKING
BILL PAYMENT
INTERNATIONAL DEBIT CARD
48
TABLE NO 5.A
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF NET BANKING
INTERPRETATION
i. Net Banking facility of HDFC Bank is rated as excellent by a majority
of respondents (73%).
ii. Followed by ICICI Bank,(68%) UTI Bank(64%)
iii. Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of
Baroda, etc are rated as good by 36% of the respondents.
iv. Co-Operative Banks are rated as satisfactory by 24% of the
respondents.
v. Co-Operatives and other banks are rated as unsatisfactory by 38% and
27% respectively.
vi. This dissatisfaction is largely due to lack of technical advancements
and capital.
BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY
HDFC 73 8 12 5 2
ICICI 68 13 8 6 5
UTI 64 14 7 8 7
CO-
OPERATIVES
14 9 15 24 38
OTHERS 19 36 11 7 27
49
GRAPH NO 5.A
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF NET BANKING
0
73 68 64
14 19
0
8 1314
9
36
0
12 87
15
11
0
56
8
24
7
0
2 5 7
3827
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BANKS
HDFCIC
ICI
UTI
CO-OP
OTHERS
Series1 Series2 Series3 Series4
Series5 Series6
50
TABLE NO 5.B
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF MOBILE BANKING
BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY
HDFC 9 13 27 36 15
ICICI 13 29 27 19 12
UTI 12 18 29 35 6
CO-
OPERATIVES
5 14 24 40 17
OTHERS 12 19 25 30 14
INTERPRETATION
i. ICICI Bank is rated as the excellent in facility of Phone and Mobile
Banking in comparison with the rest of the banks (13%)
ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated
it as satisfactory. This is mainly influenced by the perception about the
bank and previous encounter
iii. The services of all the banks are rated as fair by approximately 25%+
respondents for each bank.
51
GRAPH NO 5.B
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF MOBILE BANKING
9
13
27
36
15
13
29
27
19
12
12
18
29
35
6
5
14
24
40
17
12
19
25
30
14
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HDFC ICICI UTI CO-OPERATIVES
OTHERS
excellent good fair satisfactory unsatisfactory
52
TABLE NO 5.C
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF ATM NETWORK
INTERPRETATION
i. ATM Network of ICICI Bank is rated excellent (80%). Followed by
HDFC Bank (75%).
ii. UTI Bank gets third position. (70%)
iii. Co-Operative Banks are rated as fair by 30% of the respondents and
satisfactory by 31% of the respondents.
iv. Other Banks are rated as excellent by 33% of the respondents and fair by
27% of the respondents.
v. 13% respondents rated co-operative banks as unsatisfactory.
BANK EXCELLE
NT
GOOD FAIR SATISFAC
TORY
UNSATISFACTIOR
Y
HDFC 75 9 5 7 4
ICICI 80 8 5 3 4
UTI 70 6 4 12 8
CO-
OPERATIVES
15 11 30 31 13
OTHERS 33 19 27 10 11
53
GRAPH NO 5.C
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF ATM NETWORK
7580
70
15
33
98
6
11
19
55
4
30
27
7 3
12
31
10
4 4 813 11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HDFC ICICI UTI CO-OP OTHERS
EXCELLENT GOODFAIR SATISFACTORYUNSATISFACTORY
54
TABLE NO 5.D
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF SALES FORCE
BANK EXCELLENT GOOD FAIR SATISFA
CTORY
UNSATISFA
CTIORY
HDFC 45 8 22 7 18
ICICI 53 8 19 9 11
UTI 47 16 26 11 10
CO-
OPERATIVES
35 11 31 16 7
OTHERS 29 18 21 21 11
INTERPREATATION
i. The sales executives of any Bank are the biggest source of
communication. As they are the back bone of any organization.
ii. The networking and customer contact is best done by ICICI Bank’s
followed by UTI Bank and HDFC Bank.
55
GRAPH NO 5.D
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF SALES FORCE
4553
47
3529
8
8
6
1118
22
1926
3121
7
9 11 16
21
1811 10 7
11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HDFC ICICI UTI CO-OP OTHERS
EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY
56
TABLE NO 6
KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A
LOYAL CUSTOMER
Elements No of Respondents % of Respondents
Personal Touch 75 75%
Ensuring Customer
Security
37.5 37.5%
Offering Customized
Products
37.5 37.5%
Innovative Products 37.5 37.5%
Better Service Pre
&Post Banking
93.75 93.75%
INTERPRETATION
Customer Retention and Customer Satisfaction are inexorably inter - linked.
While consumers may be happy to make payments and interact with their bank
through convenient – and cheaper – banking channels, they still expect high
standards of service. A consistent service reflects the bank’s brand and image
across all channels. 93.75 per cent of respondent banks informed that superior
service pre and post banking has been one of the essential factors rated high by
their customers. 75 per cent of respondent banks felt that Personal touch in the
dealings has helped them in winning customers.
57
GRAPH NO 6
KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A
LOYAL CUSTOMER
Better service pre and post banking 93.75%
Being a leader in offering innovative products from time from time 37.5%
Offering Customized Products 37.5%
Ensuring Customer Security 37.5%
Personal Touch 75%
58
TABLE NO 7
TABLE OF CUSTOMER’S PREFERRED BANK
BANKS % OF RESPONDENTS
HDFC BANK 24%
ICICI BANK 29%
UIT BANK 10%
CO-OPERATIVE BANKS 13%
BANK OF MAHARASHTRA 10%
KOTAK MAHINDRA 8%
INTERPRETATION
i. ICICI Bank is the most preferred bank in the market by the customer.
(29%)
ii. HDFC Bank is the second most preferred bank. (24%)
iii. Co-operative Banks are the third most preferred banks. (13%)
iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.
v. Kotak Mahindra Bank is the least preferred bank as per the respondents in
regard with Corporate Salary Account.
59
GRAPH NO 7
CUSTOMER’S PREFERRED BANK
PERCENTAGE OF RESPONDENTS
2429
10 13 10 8
HD
FC
ICIC
I
UT
I
CO
-OP
BA
NK
OF
MA
HA
RA
SH
TR
A KO
TA
KM
AH
IND
RA
PERCENTAGE OF ESPONDENTS
60
TABLE NO 8 CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED B Y HDFC BANK LTD
Elements % of Respondents
Yes 83%
No 17%
INTERPRETATION
i. 83% of the respondents where happy with the service quality of
offered by HDFC Bank
61
GRAPH NO 8
CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED B Y
HDFC BANK LTD
% OF RESPONDENTS
83%
17%
YES NO
62
TABLE NO 9
CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA
CRITERIA % OF RESPONDENTS
Yes 26%
No 74%
INETRPREATATION
ii. Even though 74% of the respondents are unsatisfied with the
documentation in the account opening procedure however in terms with
Global Banking HDFC Bank is one of the major contributor for putting
India on No.1 position in regards with Regulatory Systems.
63
GRAPH NO 9
CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA
% OF RESPONDENTS
YES26%
NO74%
YES NO
64
TABLE NO 10
THE MOST EFFECTIVE MEANS OF COMMUNICATION
Elements % Of Respondents
SALES FORCE 53%
TELE MARKETING 15.8%
WORD OF MOUTH 11.3%
NEWSPAPER 9.7%
TV 6.2%
PUBLIC RELATION 4%
INTERPRETATION
i. The banks employees are rated as the most effective source of
communication (53%)
ii. Tele marketing is second most effective means of communication (15.8%)
iii. Peers group and positive as well as negative word of mouth publicity is an
effective source of communication. (11.3%)
iv. With Newspapers, Television, and Public Relations following each other.
65
GRAPH NO 10
THE MOST EFFECTIVE MEANS OF COMMUNICATION
53
15.811.3 9.7
6.2 4
0
10
20
30
40
50
60
SALESFORCE
TELEMARKETING
WORD OFMOUTH
NEWSPAPER TV PUBLICRELATION
% OF RESPONDENTS
% OF RESPONDENTS
66
TABLE NO 11
STRENGTHEENS AND WEEKNESS OF HDFC BANK SCORE CARD
Parameters Score
Regulatory System 5
Technology Advancements 6
Credit Quality 5
Diversification of market beyond
big cities
4
Size of Bank 5
Banking Infrastructure 4
Labor Inflexibilities 3
INTERPRETATION
i. The Indian banking sector has scored over its counterparts not only in
developing but also even in developed world such as Japan, Singapore and
Australia on significant parameters.
ii. Technology has given birth to a new era in banking. Technology can be
the key differentiator between two banks and a major factor to attain
competitive edge. Though slow in the beginning, HDFC Bank seem to
have paced up in adoption of advanced technology.
iii. While enhancement of credit is an important function of the Banks, it is
equally imperative to keep a check on the quality of credit to ensure good
health of the banking system and effective functioning of market for
distressed assets.
67
iv. One of the key fundamentals of banking sector – Credit Quality too has
been rated fairly well in comparison with other Banks.
v. Even though HDFC Bank is a big player in Indian Banking sector still it is
not yet penetrated in the rural areas of India to a very great extend.
vi. HDFC Bank as earlier said is a large player in the Indian Banking
Sector, however when it comes to banking infrastructure it is one of its
weak. And so labour inflexibilities.
68
GRAPH NO 11 STRENGTHES AND WEEKNESS OF HDFC BANK SCORE CARD
STRENGTHS AND WEAKNESS OF HDFC BANK Score
5
6
5
4
5
4
3
0 2 4 6 8
Regulatory Systems
TechnologyAdvancement
Credit Quality
Diversification ofmarket beyond big
cities
Size of Bank
BankingInfrastructure
Labor Inflexibilities
STRENGTHS AND WEAKNESS OF HDFC BANK Score
69
CHAPTER-7
FINDINGS
&
CONCLUSIONS
70
FINDINGS
As stated earlier there are main two types of consumers in this field and they are:
1 Small Business consumers
2. Big Business consumers
WAYS TO COMPETE (FINDINGS)
Now all are competing with each other on the basis of different strategies or
combination of one or more strategies. But if we try to summarize the strategies
then we will find that most of these are common and including all these are not
more than the followings: -
i. QUALITY SERVICE:
Quality Service is the most important strategy used to compete in this market
because customers is no more centric only in India, they need better quality in the
service provided to them. The policy of ONE PIONT CONTACT should be
followed by HDFC Bank.
ii. ADVERTISEMENTS:
Only ICICI BANK and UTI BANK are countering HDFC BANK in market
through advertisements. Others are not even bothering on doing advertisements.
iii. PERFORMANCE:
HDFC Bank lacks on the prompt action where as others are a bit ahead in this
line. HDFC Bank takes nearly 8 10 days to open a salary account for tie customer
company. This is mainly because HDFC bank follows the guidelines of RBI and
71
the required number of documents for account opening in a bit regress. But when
it comes to service performance customers are happy.
iv. DIFFERENT SCHEMES:
Some additional facilities should be provided to large companies in order increase
Brand Value as well as bring customer loyalty.
v. POTENTIAL MARKET:
The current account holders should be contacted as there is less amount of
documentation and lesser time is spend in convincing the customer about HDFC
Bank firstly and secondly about Salary Account.
Conclusions
MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY
ACCOUNT (CONCLUSION):
As a summer trainee in HDFC BANK, I would like to conclude my project work
on Marketing Strategies of HDFC Bank India Ltd. It was really very interesting
interacting with customers and have an insight into HDFC Banks brand image in
their minds.
The main aim was to know the factors & attributes of brand, and services
provided by it, which companies look for in Corporate Salary Account. From the
survey, overall conclusion was that people are quite satisfied with HDFC Banks
Corporate Salary Account services.
72
CHAPTER-8
SUGGESTIONS
&
RECOMMENDATIONS
73
SUGGESTIONS
After talking to customers and staffs I suggest the following points to keep
customers happy
QUICK SERVICE: -
HDFC Bank must try to provide services as early as possible and reduce the time
gap between date promised and work performed so that customer must not get
irritated.
PROPER CO-ORDINATION: -
Staffs of HDFC are still not comfortable with the queries of customers about their
new service, as they sometimes feel dumb to some of the questions. They must get
proper updating from the head office related to any changes or problems faced by
the staffs.
PROPER ORGANISATION OF WORK: -
HDFC Bank needs to be more organized in terms with area division among the
various internal sales teams. The potential market should be followed up in order
to get good sales number.
QUALITY SERVICE: -
HDFC Bank customers generally have following complains:
Number of days has passed yet my account opening process is under process
I have not receive my personalized cheque book as it has been more than a month
after applying for it
I have made a number of complaints but no one is hearing HDFC Bank has to
resolve them as early as possible because it affects the service quality very badly.
74
CHAPTER-9
LIMITATIONS OF THE STUDY
75
LIMITATIONS
i. AREA LIMITATION: The study was limited to Pune city only. Hence
findings may differ from other parts of India where I have not visited
ii. NON-RESPONSE ERROR: It is almost impossible to obtain data from each
& every respondent covered in sample. There are always some respondents who
refuse to give information
iii. LIMITED SOURCE OF DATA COLLECTION: Sources of data for
collection of secondary data were limited
iv. TIME CONSTRAINT: There was time constraint to this project. The project
has to be completed within 2 months.
v. BUSY RESPONDENT: Many times respondents were so busy that they didn’t
t give reply. There were biased replies also.
vi. OTHER REASONS: There were heavy rains during the period of survey. So
there was many times problem in conducting survey & transportation.
76
CHAPTER-10
BIBLIOGRAPHY
77
Bibliography
i. The Economic Times
ii. The Times of India
iii. www.economictimes.com
iv. www.hdfc.com
v. www.hdcbank.com
vi. www.indiabulls.com
vii. www.icicibank.com
viii. http://www.citibank.com/us/d.htm
ix. HDFC Annual Report 2006
x. 10 Years Highlights – (HDFC Bank website – Acrobat File)
