A

SUMMER TRAINING PROJECT REPORT

ON
ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER
INDUSTRY
[A CASE STUDY OF BISLERI]
Submitted to

Dr A P J Abdul Kalam Technical University, Lucknow

In the partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(2018-2020)

Under the guidance of: Submitted By:

Dr. Manjusha Goel Arzoo Chaudhary
Asst. Profesor M.B.A- IIIrd Sem.
Roll No.– 1803370004

Raj Kumar Goel Institute of Technology

ISO 9001:2008 Certified
5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD -201003

Department of Management Studies (MBA)

 TO WHOM SO EVER IT MAY CONCERN

This is to certify that MS. Shivani a bonafide student of MBA 2nd Year of this
institute for the session 2018-20 and she has prepared Research Project Report
titled “ANALYSIS OF CREDIT AND DEBIT CARD OF HDFC BANK”, for partial
fulfillment of Master of Business Administration (MBA) affiliated to Uttar
Pradesh Technical University Lucknow. He has worked under my supervision and
his performance during the project has been satisfactory.

I wish him all the best for his future endeavors.

Ms.ManjushaGoel
Asst.Professor-RKGIT
 Declaration
I Shivani daughter of Shri Kalu Ram pursuing Master of Business Administration
(MBA) 2nd year from Raj Kumar Goel Institute of Technology(MBA), Ghaziabad
in the session 2019-2020 I hereby declare that this project report titled
“ANALYSIS OF CREDIT AND DEBIT CARD OF HDFC BANK” is the outcome of
my own effort under the guidance of Ms.ManjushaGoel.
The same report has not been submitted earlier to any Institute /University for
awarding the degree of MBA or any other professional course. If there will be
any violation of IPR than I will be solely responsible to that and
Institute/University has right to cancelled my degree.

Date: Signature in full:……………………

Place: RKGIT,Ghaziabad Name: Shivani
Roll.No: 1803370022
 ACKNOWLEDGEMENT

“No Learning is proper and effective without

Proper Guidance”

A project cannot be accomplished singly. It involves blend of different people

ideas, suggestion, co-operation and also self-labour project involves continuous
exercise of physical and mental judgment.

Although it is very difficult to fulfil all the necessary requirement of the project I
have tried my level best to make a good and a complete project. The project could
not have been possible without the help of following people; therefore I would like
thank them for all their good support and co-operation.

I am immensely thankful to Ms.ManjushaGoel, Raj Kumar Goel Institute of

Technology, for providing us every able opportunity to bring up our talent.

I would also like to thank here my parents who were there with me when I needed
their support and cooperation at each and every step of the project work.

Shivani
 TABLE OF CONTENT

S. No. TITLE PAGE NO.

PART – I :
1. Introduction of Organization 1-16
2. Brief history of organization 17-25
3. Organization Performance 26-28
4. Organization Products/ Services 29-34
5. Major challenges for the Organization 35
PART – II :
1. Introduction of problem 36-43
2. Objective of study 44
3. Literature Review 45-49
4. Scope of study 50
5. Research Design 51-52
6. Data presentation 53-61
7. Result and Findings 62-63
8. Limitation 64
9. Suggestions 65
10. Summary & conclusion 66
PART- III :
1. Bibliography & Literature Cited 67-68
2. Annexture 69-70
 EXECUTIVE SUMMARY

In accordance with the resource project the topic chosen identify the corporate target finance
(Analysis of credit and debit card).In this research the beginning of their port is the assistance
ofvarious tools, techniques and information belong to the subject. This research has been
identified that there are no dependent and in depended various which effecting the topic and
problem relatively.

In accordance with the resource project the topic chosen identify the credit and debit card of
HDFC bank In this research the beginning of the project is the assistance ofvarious tools, techniques
and information belong to the subject.

HDFC BANK LTD 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.
 INTRODUCTION OF ORGANIZATION

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across
India.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian bank. HDFC banks business philosophy is based
on our four core values - Customer Focus, Operational Excellence, Product Leadership and
People. They believe that the ultimate identity and success of their bank will reside in the
exceptional quality of people and their extraordinary efforts. They are committed to hiring,
developing, motivating and retaining the best people in the industry.

MISSION STATEMENT OF HDFC BANK

 World Class Indian Bank.
 Benchmarking against international standards.
 To build sound customer franchises across distinct businesses
 Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business philosophy is
based on four core values such as:-
1. Operational excellence. 2. Customer Focus. 3. Product leadership. 4. People.
The objective of the HDFC Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-step window for all his/her

requirements. The HDFC Bank plus and the investment advisory services programs have been

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

and advice on various investment avenues.

How has the card been used?

 Department of Agriculture

 Foreign Agriculture Service

 Forest Service

 National Agricultural Statistics Service

 Department of Commerce, U.S. Census Bureau

 Department of Defense, U.S. Southern Command

 Department of Energy, Bonneville Power

 Department of Health & Human Services, National Institute of Health

 Department of Homeland Security

 Citizenship and Immigration Services

 Immigration and Customs Enforcement

 Transportation Security Administration

 Department of Interior, Office of International Affairs

 Department of Justice, U.S. Marshals Service

 Federal Trade Commission

  International Boundary and Water Commission

 Peace Corps

 Holocaust Museum

CREDIT CARDS

Credit Cardsis a card or mechanism which enables to purchase goods, travel and dine in a hotel
without making immediate payments. The holders can use the cards to credit from banks unto 45
days. The credit card relieves the consumer from the botheration cash and ensures safety. It is a
convenience of an extended credit without formality. Thus, credit card is a passport to, SAFETY,
CONVENIENCE, PRESTIGE AND CREDIT.

ADVANTAGES
 Purchase Power and Ease of Purchase- Credit cards can make it easier to buy
things. If you don't like to carry large amounts of cash with you or if a company doesn't
accept cash purchases (for example most airlines, hotels, and car rental agencies),
putting purchases on a credit card can make buying things easier.
 Protection of Purchases - Credit cards may also offer you additional protection if
something you have bought is lost, damaged, or stolen. Both your credit card statement
(and the credit card company) can vouch for the fact that you have made a purchase if the
original receipt is lost or stolen. In addition, some credit card companies offer insurance
on large purchases.

 Building a Credit Line - Having a good credit history is often important, not only
when applying for credit cards, but also when applying for things such as loans, rental
applications, or even some jobs. Having a credit card and using it wisely (making
payments on time and in full each month) will help you build a good credit history.

 Emergencies - Credit cards can also be useful in times of emergency. While you
should avoid spending outside your budget (or money you don't have!), sometimes
emergencies (such as your car breaking down or flood or fire) may lead to a large
purchase (like the need for a rental car or a motel room for several nights.)

 Credit Card Benefits - In addition to the benefits listed above, some credit cards
offer additional benefits, such as discounts from particular stores or companies, bonuses
such as free airline miles or travel discounts, and special insurances (like travel or life
insurance.) While most of these benefits are meant to encourage you to charge more
money on your credit card (remember, credit card companies start making their money
when you can't afford to pay off your charges!) the benefits are real and can be helpful as
long as you remember your spending limits.
 DISADVANTAGES

 Blowing Your Budget -- The biggest disadvantage of credit cards is that they
encourage people to spend money that they don't have. Most credit cards do not require
you to pay off your balance each month, so even if you only have $100, you may be able
to spend up to $500 or $1,000 on your credit card. While this may seem like 'free money'
at the time, you will have to pay it off -- and the longer you wait, the more money you
will owe since credit card companies charge you interest each month on the money you
have borrowed.
 High Interest Rates and Increased Debt -- Credit card companies charge you an
enormous amount of interest on each balance that you don't pay off at the end of each
month. This is how they make their money and this is how most people in the United
States get into debt (and even bankruptcy.) Consider this: If you have a $100 in savings,
most banks will give you at the most 2.0 to 2.5% interest on your money over the course
of the year. This means you earn $2.00 - $2.50 a year on your $100 savings. Most credit
cards charge you up to 10 times that amount of interest on balances. This means that if
you have $100 balance that you don't pay off, you will be charged 20-25% interest on
that $100. This means that you owe almost $30 interest (plus the original $100) at the end
of the year. A good way to look at this is in comparison to what you would earn in
interest from a bank or owe in interest to a bank loan: Savings accounts may pay you
around 2% interest; if you have a loan from a bank you may pay them around 10%
interest (5 times as much as you earn off your savings); if you owe money to a credit card
company, you may pay them around 20% interest (10 times as much as you earn off your
savings.)
 Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be
physically stolen (if you lose your wallet) or someone may steal your credit card number
(from a receipt, over the phone, or from a Web site) and use your card to rack up debts.
The good news is that, unlike cash, if you realize your credit card or number has been
stolen and you report it to your credit card company immediately, you will not be charged
for any purchases that someone else has made. Even if you don't realize your credit card
number has been stolen (sometimes you might not know until you receive your monthly
 statement), most credit card companies don't charge you or only charge a small fee, like
$25 or $50, even if the thief has charged thousands of dollars to your card. There are
several things you can do to prevent credit card fraud:
o If you lose your card or wallet, report it to your credit card company immediately.
o Don't loan your credit card to anyone and only give out your credit card
information to trusted companies or Web sites.
o Check your statement closely at the end of each month to make sure all charges
are yours.
o You can find out more about protecting your personal information by visiting our
Personal Safety course.

Credit cards can make life easier and be a great tool, but if they aren't used wisely they can
become a huge financial burden. If you do decide to use credit cards, remember these simple
rules:

 Keep track of all your purchases.

 Don't spend outside your budget.
 Pay off your balance on all of your credit cards at the end of each month.

TYPES OF CREDIT CARD

HDFC CREDIT CARDS

WORLD CREDIT CARD

  2 Reward Point per Rs. 150

 50% more Reward Points on incremental spends above Rs. 75,000 per

statement cycle

 Priority Pass membership

You will get some exclusive features and benefits with your HDFC Bank

World Credit Card

If you lose your Card, report it immediately to our 24-hour call centre. After reporting

the loss, you carry zero liability on any fraudulent transactions on your card. Card:

 Standard Credit Card: This is the most commonly used. One is allowed to use money up
to a certain limit. The account holder has to top up the amount once the level of the
balance goes down. An outstanding balance gets a penalty charge.
 Premium Credit Card: This has a much higher bank account and fees. Incentives are
offered in this over and above that in a standard card. Credit card holders are offered
travel incentives, reward points, cask back and other rewards on the use of this card.
This is also called the Reward Credit Card. Some examples are: airlines frequent flier
credit card, cash back credit card, automobile manufacturers' rewards credit card.
Platinum and Gold, MasterCard and Visa card fall into this category.
 Secured Credit Card: People without credit history or with tarnished credit can avail this
card. A security deposit is required amounting to the same as the credit limit. Revolving
balance is required according to the 'buying and selling' done.
 Limited Purpose Credit Card: There is limitation to its use and is to be used only for
particular applications. This is used for establishing small credits such as gas credits and
credit at departmental stores. Minimal charges are levied.
 Charge Credit Card: This requires the card holder to make full payment of the balance
every month and therefore there is no limit to credit. Because of the spending flexibility,
the card holder is expected to have a higher income level and high credit score. Penalty
is incurred if full payment of the balance is not done in time.
 Specialty Credit Card: is used for business purposes enabling businessmen to keep their
businesses transactions separately in a convenient way. Charge cards and standard
cards are available for this. Also, students enrolled in an accredited 4-year
college/university course can avail this benefit.
 Prepaid Credit Card: Here, money is loaded by the card holder on to the card. It is like a
debit card except that it is not tied up with a bank account.

SALIENT FEATURES OF CREDIT CARDS

 ANNUAL FEE

 All credit card issuers charge an annual fee which is payable at the start of the year. The

start of the year, of course, is your membership year, and not the calendar year. So, if you

got yourself a card in March, you can expect to be billed the annual fee every March until

you cancel your card. As a privilege, this fee is sometimes waived the first time. When

the time comes for renewal of your card, you can even use the reward points you have

accumulated from using the credit card over the year to settle your annual fee.

 FORWARDING BALANCE (OR REVOLVING)

 The most attractive feature of a credit card is that you need not pay off your dues in

whole. You can opt to pay 5% of the total amount on or before the due date, every month,

the rest is carried forward. But there's a price to pay for this extended credit - interest!

Normally, interest varies between 2.5% and 3% per month.

 APR OR ANNUAL PERCENTAGE RATE

 The interest rate that reflects the yearly cost of the interest the outstanding on your card is

called the annual percentage rate. This rate is charged to the card holder on the amounts

carried forward beyond the due date for the payment of balances. Most card issuers will

tell you their monthly rate of interest. It might sound low at 3%, but when you look at the

interest rate over the year, it turns out to be as high as 43%.

 CASH ADVANCE

 An important feature - lets you withdraw cash from designated ATMs using your credit

card. Use discretion when withdrawing cash on your credit card because the charges for

this facility are high, around 2.5% to 3% per transaction.

How to use Credit Cards

 1. Separating business and personal spends may provide better finance management

option.

 2.Since Card is like cash- Not to carry the ATM – PIN along the card- Always check the

amount on the sales slip and terms and conditions on the invoice before signing the slip-

Not to use the card at unknown website- Report lost card instantly- Not to part with the

card number, expiry date to strangers.

 3. Maintain Card statements- Review the monthly statement before destroying them-

Ideally the card sales slips and invoices should be retained for 6months- Subscribe to the
 internet banking facility for easy access to the statement- Balance in the card account

can also be obtained from the ATM and call center.- Inform any mismatch on the

statement to the bank

 4. Payment date- Diaries the payment due date and pay on or before the date-

Subscribe to internet banking and opt for the payment alert.

 6. To contact the bank - Use the call center- Use the PIN for standard information as well

as toper form transactions through call centers- Use the internet banking and leave

queries- Drop letter at the ATM or mail to the Card Centre.

 7.Avail the benefits- Monitor the reward points from the statements, Internet banking

and call center.- Redemption can be done using internet, call center and letter.

 This card is typically meant for high-income group categories and companies and may

not be acceptable at many outlets.

 DEBIT CARD

A debit card (also known as a bank card or check card) is a plastic card that provides the
cardholder electronic access to his or her bank account(s) at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a payee's designated bank account. The card, where
accepted, can be used instead of cash when making purchases. In some cases, the primary
account number is assigned exclusively for use on the Internet and there is no physical card.

ADVANTAGES
Debit card does not match with credit card’s qualities much more hence it has some of
advantages that you can’t get in a credit card. These are:
 Like credit cards, debit cards are accepted by merchants because of its easiness, safety and
quick money transaction utility which makes it more comfortable for business than a paying
check.
 In a debit card you have to pay only one time fee with no extra interests or surcharges like late
fee, APR, etc. which is a common element in every credit card. You can utilize it as an alternative
for credit card at zero costs in comparison of a credit card.
 Similar to credit cards, a debit card can be used at anywhere, anytime for any buying until you
have enough payment in your bank account. You can use it to make online purchasing where
you can’t pay through cash or paying check or if you don’t have a credit card.
 You can use your debit card to obtain cash from an ATM without paying any extra charge for
which you have to pay a higher fee if you obtain cash from your credit cards.
 Anyone who has bank account can obtain a debit card even if he/ she does not maintain a good
credit report thus it is a good alternate for people with bad credit report or FICO score. Further
more it never brings you credit card bankruptcy until you don’t want to pay overdraft fee.
 DISADVANTAGES
 As debit card does not offer credit facility to its user, some banks introduced a new
feature ‘overdraft’ (not exactly but similar to credit limit) so you can withdraw more
amount than you have in your account. Certainly they charge for it too, sometimes it
may be very high.
 Some banks have amended their terms & conditions clauses by adding a term of
maintaining a minimum balance in your bank account. If you don’t follow the rule bank
will charge fee for non-sufficient funds or over-limit fee.
 In some countries debit card does not offer much security than credit card because of its
direct connection to the holder’s bank account. If someone steals it to get cash, you will
have to suffer financial loss but in credit cards you can stop payment due to it takes
enough time to take an action. Besides it credit card companies offer fraudulent alert
utility (with a time limit up to 60 days) to credit card users so they can stop any
suspicious activity on time in order to minimise credit card fraud, this facility does not
come with debit cards.
 Some debit cards don’t offer safety and security because of loopholes in concerned
countries’ laws even a debit card is easier for hackers than a credit card.

TYPES OF DEBIT CARD
 1.Offline Debit System
 Offline debit cards have the logos of major credit cards (for example, Visa or
MasterCard) or major debit cards (for example, Maestro in the United Kingdom and
other countries, but not the United States) and are used at the point of sale like a credit
card (with payer's signature). This type of debit card may be subject to a daily limit,
and/or a maximum limit equal to the current/checking account balance from which it
draws funds. Transactions conducted with offline debit cards require 2–3 days to be
reflected on users’ account balances.In some countries and with some banks and
merchant service organizations, a "credit" or offline debit transaction is without cost to
the purchaser beyond the face value of the transaction, while a fee may be charged for
 a "debit" or online debit transaction (although it is often absorbed by the retailer).
Other differences are that online debit purchasers may opt to withdraw cash in addition
to the amount of the debit purchase (if the merchant supports that functionality);

also, from the merchant's standpoint, the merchant pays lower fees on online debit transaction as
compared to "credit" (offline)

2.Electronic Purse Card System

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick Wertkarte), the Netherlands (Chipknip), Belgium (Proton), Switzerland (CASH) and
France (Moneo, which is usually carried by a debit card). In Austria and Germany, all current
bank cards now include electronic purses.

3.Prepaid debit cards

Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users. The primary
market for prepaid cards are unbanked people,[4] that is, people who do not use banks or credit
unions for their financial transactions, possibly because of poor credit ratings.

The advantages of prepaid debit cards include being safer than carry cash, worldwide
functionality due to Visa and MasterCard merchant acceptance, not having to worry about
paying a credit card bill or going into debt, the opportunity for anyone over the age of 18 to
apply and be accepted without regard to credit quality and the option to direct deposit paychecks
and government benefits onto the card for free.

Some of the first companies to enter this market were: MiCash, RushCard and Netspend, who
gained high market share as a result of being first to market. However, since 1999, there have
been several new providers, such as TransCash, 247card and I Kobo, that offer a number of other
benefits, such as money remittance services, card-to-card transfers, and the ability to apply
without a social security number.
PLATINUM DEBIT CARD

We are pleased to introduce HDFC Bank Platinum Debit Card, which comes packed with

comforts and conveniences. Your HDFCBank Platinum Debit Cardwillentitle you to a number of

special discounts and conveniences and rewards like never before.

WOMAN'S DEBIT CARD

A Debit Card specially designed for the woman of today! Packed with conveniences every

woman will cherish. Avail attractive discounts for shopping, dining and more while you continue

to enjoy all the benefits that are yours with the ownership of an HDFC Bank Debit card.

BUSINESS DEBIT CARD

We are pleased to introduce HDFC Bank Business Debit Card, packed with a host of

benefits and special privileges. Having this card in your wallet is like carrying your

bank account wherever you go. Enjoy unrestricted shopping, savings with special

discounts, higher ‘Reward Points’ earnings and the complete security of not having

to carry large amounts of cash with you.

DRAWBACKS OF DEBIT CARDS

Unlike a credit card, a debit card transaction also has certain drawbacks, which are following.

 Debit card gives you no grace period. They are an immediate, pay-now deal.

 They can make balancing your account tricky if you are not fastidious about keeping

receipts and recording transactions in a timely fashion.

 It is easy to forget, for example, when you pay at the gas pump with a debit card and

drive off without your receipt.

  Using a debit card may mean you have less protection than you would with a credit card

for goods that are never delivered, are defective or were misrepresented. But, as with

credit cards, you can dispute unauthorized charges or other mistakes within 60 days.

 Fees -- the debit card could be a costly affair to have, especially when using an ATM that

is not affiliated with your bank.

BENEFITS OF DEBIT CARD

 Obtaining a debit card is often very easy. If you qualify to open a bank account, you can

usually get a debit card (provided your bank is offering the service)

 When using a debit card, one does not have to show identification papers or give out

personal information at the time of the transaction.

 It frees you from carrying cash or a cheque book.

 In case of international travelers, it can save you from having to stock up on traveler’s

cheques or cash when you travel.

 Debit cards may be more readily accepted than checks, especially in other states or

countries as one need not verify the authenticity of the payment and the merchant is

assured of immediate payment.

 If you return merchandise or cancel services paid for with a debit card, the transaction

will be, generally, treated as if it were made with cash or a check. Customers usually get

cash back for on-line purchases; for off-line transactions, the amount is credited to your

account.

 The bother of making payments at the receipt of the credit card statement is eliminated.
  In case of credit cards, delayed payments are penalized at 30% p.a. rates. This penalty

situation never arises in debit cards.

 Most importantly, debit cards can be used to make smaller value payments, avoiding the

need to withdraw cash from the bank for such petty expenses. If a credit card was used

for making cash withdrawals a charge is levied and concomitantly interest is charged on

the amount such withdrawn from the day of withdrawal.

 The debit card base in India in March 2000 was already at 3,00,000. Moreover the usage

figures are even more impressive. Seven out of 10 card holders use their card on a regular

basis with the average monthly spend on a debit card was Rs 1,400, which puts total

annual spends at over Rs5bn. Bare in mind that only two banks namely HDFC Bank and

Citibank, in India currently offer their customers debit cards.

Both MasterCard and Visa International have already witnessed a huge rise in their debit card

bases in the Asia-Pacific region. After 25 years in the region, MasterCard has built up a credit

card base of 80mn, whereas its debit card base, in just four years, has touched 37mn. Visa too, in

less than 18 months, built up a base of 48mn debit cards.

 BRIEF HISTORY OF ORGANIZATION

Date of Establishment 08 1994

Revenue 0 ( USD in Millions )
Market Cap 1518460.9769 ( Rs. in Millions )
Corporate Address Hdfc Bank House,SenapatiBapatMarg,Kamala Mills
Compound Lower Parel (West)Mumbai-400013,
Maharashtra
www.hdfcbank.com
Management Details Chairperson - C M Vasudev
MD - AdityaPuri
Directors - A N Roy, AdityaPuri, Anami N Roy,
ArvindPande, AshimSamanta, Bobby Parikh, C M
Vasudev, Gautam Divan, Harish Engineer,
JagdishCapoor, KekiMistry, PanditPalande,
PareshSukthankar, ParthoDatta, RenuKarnad, Sanjay
Dongre, ShailendraBhandari, Vijay Merchant
Business Operation Bank – Private
Background The HDFC Bank was incorporated on August 1994 by 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. The
Housing Development Finance Corporation (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, a
Financials Total Income - Rs. 325300.466 Million ( year ending
Mar 2012)
Net Profit - Rs. Million ( year ending Mar 2012)
Company Secretary Sanjay Dongre
Bankers No Bankers Details in A.R
Auditors Haribhakti& Co

COMPANY PROFILE

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited
(HDFC), India's largest housing finance company. It was among the first companies to receive
an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private
sector. The Bank started operations as a scheduled commercial bank in January 1995 under the
RBI's liberalisation policies.Times Bank Limited (owned by Bennett, Coleman & Co./The Times
Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private
banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000crore and net advances
of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs.
1,63,000crore

HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial banks of
India, was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks in
the private sector. The Bank was promoted by the Housing Development Finance Corporation
Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the year
ended March 31, 2006 was up 30.8% to Rs 870.8 crores.
Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail
Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance, and merchant banking. It is
also providing sophisticated product structures in areas of foreign exchange and derivatives,
money markets and debt trading And Equity research.

Wholesale banking services

For customers from ongoleBlue-chip manufacturing companies in the Indian corp to small &
mid-sized corporates 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. The bank is also a leading provider of the above
services to its corporate customers, mutual funds, stock exchange members and banks

Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (Visa Electron) and issues the Master Card Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2009, the bank had a total card base (debit and
credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant
acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill
Payments, etc.With Finest of Technology and Best of Man power in Banking Industry HDFC
Bank's retail services have become by and large the best in India and since the contribution to
CASA i.e. total number of current and savings account of more than 50%, HDFC BANK has full
potential to become India's No.1 Private Sector Bank.
Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. These services 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.

Distribution network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
684 branches spread over 316 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE
have a strong and active member base.

The Bank also has a network of about over 1,740 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.

Branch Network
Currently (2007), HDFC Bank has 583 branches located in 263 cities of India, and all branches
of the bank are linked on an online real-time basis. The bank offers many innovative products &
services to individuals, corporates, trusts, governnments, partnerships, financial institutions,
mutual funds, insurance companies. The bank also has over 1471 ATMs. In the next few month
the number of branches and ATMs should go up substantially.
Recognition
Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a
number of organizations, which includes: Best Domestic Bank in India in The Asset Triple A
Country Awards 2005, 2004 and 2003. “Company of the Year” Award in The Economic Times
Awards for Corporate Excellence 2004-05.
Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash Management
Bank - India in 2005.The Asian Banker Excellence in Retail Banking Risk Management Award
in India for 2004. Finance Asia “Best Bank - India” in 2005, "Best Domestic Commercial Bank
– India” in 1999, 2000 and 2001 respectively and “Best Local Bank – India” in 2002 and 2003.
Business Today “Best Bank in India” in 2003 and 2004.“Best Overall Local/Domestic Bank
India” in the Corporate Cash Management Poll conducted by Asiamoney magazine. Selected by
BusinessWorld as "one of India's Most Respected Companies" as part of The Business World
Most Respected Company Awards 2004. In 2004, Forbes Global named HDFC Bank in its
listing of Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe. In
2004, HDFC Bank won the award for “Operational Excellence in Retail Financial Services” -
India as part of the Asian Banker Awards 2003. In 2003, Forbes Global named HDFC Bank in
its ranking of “Best Under a Billion, 200 Best Small Companies for 2003”. The Financial
Express named HDFC Bank the “Best New Private Sector Bank 2003” in the FE-Ernst & Young
Best Banks Survey 2003.
Outlook Money named HDFC Bank the “Best Bank in the Private Sector” for the year 2003.
NASSCOM and economictimes.com have named HDFC Bank the ‘Best IT User in Banking’ at
the IT Users Awards 2003.
Euromoney magazine gave HDFC Bank the award for "Best Bank – India” in 1999, “Best
Domestic Bank” in India in 2000, and “Best Bank in India” in 2001 and 2002. Asiamoney
magazine has named us “Best Commercial Bank in India 2002” For its use of information
technology, HDFC Bank has been recognized as a “Computerworld Honors Laureate” and
awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate
category by Computerworld, Inc., USA. Its technology initiative has been included as a case
study in their online global archives. Business India named HDFC Bank “India’s Best Bank” in
2000. In 2000, Forbes Global named HDFC Bank in its list of “The 300 Best Small Companies”
in the world and as one of the “20 for 2001” best small companies in the world.
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 "highest credit 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.

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.
HISTORY OF PLASTIC CARDS

Since the beginning of history man has been involved with trade and commerce. As this

area has expanded and become more important, different medium of exchange has been

developed. Barter gave way to the advance of money, and money in turn has faced the

advance of checks. Now both are feeling the advance of credit card.

The concept of using a card for purchases was described in 1887 by Edward Bellamy in his

utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel.

The modern credit card was the successor of a variety of merchant credit schemes. It was first

used in the 1920s, in the United States, specifically to sell fuel to a growing number of

automobile owners. In 1938 several companies started to accept each other's cards. Western

Union had begun issuing charge cards to its frequent customers in 1921. Some charge cards were

printed on paper card stock, but were easily counterfeited.

The Charge-Plate, developed in 1928, was an early predecessor to the credit card and used in the

U.S. from the 1930s to the late 1950s. It was a 2½ in × 1¼ in rectangle of sheet metal related to

Addressograph and military dog tag systems. It was embossed with the customer's name, city

and state. It held a small paper card for a signature. In recording a purchase, the plate was laid

into a recess in the imprinter, with a paper "charge slip" positioned on top of it. The record of the

transaction included an impression of the embossed information, made by the imprinter pressing

an inked ribbon against the charge slip. Charge-Plate was a trademark of Farrington

Manufacturing Co. Charge-Plates we reissued by large-scale merchants to their regular

customers, much like department store credit cards of today. In some cases, the plates were kept
in the issuing store rather than held by customers. When an authorized user made a purchase, a

clerk retrieved the plate from the store's files and then processed the purchase. Charga-Plates

speeded back-office bookkeeping that was done manually in paper ledgers in each store, before

computers.

In 1934, American Airlines and the Air Transport Association simplified the process even more

with the advent of the Air Travel Card. They created a numbering scheme that identified the

Issuer of card as well as the Customer account. This is the reason the modern UATP cards still

start with the number 1. With an Air Travel Card passengers could "buy now, and pay later" for a

ticket against their credit and receive a fifteen percent discount at any of the accepting airlines.

By the 1940s, all of the major domestic airlines offered Air Travel Cards that could be used on

17 different airlines. By 1941 about half of the Airlines Revenues came through the Air Travel

Card agreement. The Airlines had also started offering installment plans to lure new travelers

into the air. In October 1948 the Air Travel Card became the first inter-nationally valid Charge

Card within all members of the International Air Transport Association.

The concept of customers paying different merchants using the same card was expanded in 1950

by Ralph Schneider and Frank McNamara, founders of Diners Club, to consolidate multiple

cards. The Diners Club, which was created partially through a merger with Dine and Sign,

produced the first "general purpose" charge card, and required the entire bill to be paid with each

statement. That was followed by Carte Blanche and in 1958 by American Express which created

a worldwide credit card network (although these were initially charge cards that acquired credit

card features after BankAmerica card demonstrated the feasibility of the concept).
However, until 1958, no one had been able to create a working revolving credit financial

instrument issued by a third-party bank that was generally accepted by a large number of

merchants (as opposed to merchant-issued revolving cards accepted by only a few merchants). A

dozen experiments by small American banks had been attempted (and had failed). In September

1958, Bank of America launched the Bank America card in Fresno, California. BankAmerica

card became the first successful recognizably modern credit card (although it underwent a

troubled gestation during which its creator resigned), and with its overseas affiliates, eventually

evolved into the Visa system. In 1966, the ancestor of MasterCard was born when a group of

banks established Master Charge to compete with Bank America card; it received a significant

boost when Citibank merged its proprietary Everything Card (launched in 1967) into Master

Charge in 1969.

Early credit cards in the U.S., of which BankAmerica card was the most prominent example,

were mass produced and mass mailed unsolicited to bank customers who were thought to be

good credit risks. But, "They have been mailed off to unemployables, drunks, narcotics addicts

and to compulsive debtors, a process President Johnson's Special Assistant Betty Furness found

very like 'giving sugar to diabetics'." These mass mailings were known as "drops" in banking

terminology, and were outlawed in 1970 due to the financial chaos they caused, but not before

100 million credit cards had been dropped into the U.S. population. After 1970, only credit card

applications could be sent unsolicited in mass mailings.Althoughcredit cards reached very high

adoption levels in the US, Canada and the UK in the mid twentieth century, many cultures were

more cash-oriented, or developed alternative forms of cash-less payments, such as Carte blue or

the Eurocard (Germany, France, Switzerland, and others). In these places, adoption of credit

cards was initially much slower. It took until the 1990s to reach anything like the percentage
market-penetration levels achieved in the US, Canada, or UK. In some countries, acceptance still

remains poor as the use of a credit card system depends on the banking system being perceived

as reliable. Japan remains a very cash oriented society, with credit card adoption being limited to

only the largest of merchants, although an alternative system based on RFIDs inside cellphones

has seen some acceptance. Because of strict regulations regarding banking system overdrafts,

some countries, France in particular, were much faster to develop and adopt chip-based credit

cards which are now seen as major anti-fraud credit devices. Debit cards and online banking are

used more widely than credit cards in some countries.

The design of the credit card itself has become a major selling point in recent years. The value of

the card to the issuer is often related to the customer's usage of the card, or to the customer's

financial worth. This has led to the rise of Co-Brand and Affinity cards, where the card design is

related to the "affinity" (a university or professional society, for example) leading to higher card

usage. In most cases a percentage of the value of the card is returned to the affinity group.
 ORGANIZATION PERFORMANCE
Performance Matrix of HDFC Bank Ltd with other BANKS Stocks

Name Graphical Curre One Two One Three Six One

Comparisi nt Week Week Month Month Month Year Old
on Price Old Old Old Old Old Price/Ga
Price/Ga Price/Ga Price/Ga Price/Ga Price/Ga in in %
in in % in in % in in % in in % in in %
HDFC Graphical 639.4 657.3/ 622.5/ 676.75/ 688.75/ 612.75/ 510.8/
Bank Comparisio
Ltd. n -2.72% 2.71% -5.52% -7.17% 4.35% 25.18%
BSE Graphical 19427. 19683.2/ 18918.5/ 19468.2/ 19317.3/ 18464.3/ 17675.8/
SENSE Comparisio 6
X n -1.30% 2.69% -0.21% 0.57% 5.22% 9.91%
S&P Graphical 5872.6 5945.7/ 5719.7/ 5887.4/ 5879.6/ 5577.65/ 5380.5/
CNX Comparisio
NIFTY n -1.23% 2.67% -0.25% -0.12% 5.29% 9.15%
Allahab Graphical 138.4 143.25/ 137.65/ 148.0/ 161.55/ 124.85/ 193.8/
ad Bank Comparisio
n -3.39% 0.54% -6.49% -14.33% 10.85% -28.59%

January 19, 2012:

HDFC Bank continued to cheer the market with its consistency in delivering steady profit
growth. The profit growth in the December quarter, at 31.4 per cent over the corresponding year-
ago period, was buoyed by strong loan book growth, revival in fee income and lower
provisioning. Contrary to the moderation in the banking system's loan growth, HDFC Bank's
loan book expanded 22 per cent . A 29 per cent rise in its retail loan portfolio was a key driver .
Growth in the retail portfolio (which now constitutes 52 per cent of the loan book) also comes as
a surprise given that it is higher than the industry rate . Personal loans, credit cards and the SME
(small and medium enterprises) segments of the bank's business grew at decent clip.Rising share
of retail loans helped the bank maintain its net interest margins at 4.1 per cent. High yielding
retail loans coupled with improved credit-deposit ratio offset a marginal rise in cost of funds. The
cost of fundsstood at 7 per cent (annualised), which may be one of the lowest in the banking
sector.
With aggressive branch expansion, the bank managed to maintain its low-cost deposit proportion
in spite of the rising threat from other private banks which are pricing their savings rate products
at more attractive rates.

Fee income sources also rose, logging a 19.6 per cent growth .

Asset quality

With focus on short-term loans , the bank is in a relatively better position than most of its peers.
Even as the asset quality woes are threatening other private peers, HDFC Bank managed to
contain its gross NPA (non-performing asset) ratio at 1.03 per cent in December 2011. After
provisioning, the net NPA ratio stood at 0.2 per cent. With relatively low NPAs, the requirement
for additional provisioning is coming down. During the December quarter, provisions have fallen
by 30 per cent .

HDFC Bank 2QFY2013 performance highlights and results update

For 2QFY2013, HDFC Bank reported a healthy 30.1% yoy growth in its net profit to Rs.1,560cr,
in-line with our as well as the street’s estimates. Strong balance sheet growth, stable asset quality
were the key highlights of the result. We recommend a Neutral rating on the stock

Another quarter of steady performance: HDFC Bank’s net advances growth was strong at
22.9% yoy, while deposit buildup was also healthy, growing by 18.8% yoy. On the CASA front,
the current account (adjusted for one-offs) and savings account deposit accretion was moderate,
growing at 16.4% and 14.7% yoy, respectively. The share of retail to overall loan book increased
from 52.4% in 1QFY2013 to 53.2% for 2QFY2013, on back of lower wholesale lending (6.9%
qoq compared to 10.1% qoq in retail loans). In spite of lower corporate lending, the bank’s
margins declined by10bp qoq, primarily due to reduction in its base rate by 20bp to 9.8% (on
30th June 2012). Fee based income growth for the bank in 2QFY2013 was strong at 19.6% yoy,
primarily due to a strong performance on the third party commission front, leading to a 22.4%
yoy growth in commission and brokerage income. The forex income growth was however
modest at 8.2% yoy, mostly due to lower exchange rate volatility during the quarter. The bank
maintained its strong asset quality track record during 2QFY2013 as well. Gross and net NPA
ratios remained stable at 0.9% and 0.2%, respectively. The bank made lower floating rate
provisions (Rs.75cr in 2QFY2013 compared to Rs.240cr in 2QFY2012) due to which the
provisioning expenses were lower by 20.0% yoy. Hence, in spite of operating income growth of
22.2% yoy, the bank owing to lower provisioning cost (floating provisions) was able to achieve
above 30% yoy growth at the bottom-line level. The total floating provisions for the bank now
stand at Rs.1,750cr.

Outlook and valuation: HDFC Bank is currently trading at one-year forward 3.8x P/ABV (3.6x
FY2014 ABV), higher than its median of 3.5x (over FY2005-12). We believe the current
valuations largely factor in the positives, leaving limited upside in the stock. Hence we
recommend a Neutral rating on the stock.
 ORGANIZATION PRODUCTS/ SEVICES

PRODUCTS AND SERVICES PROVIDED BY HDFC BANK

 Savings Accounts
The 'saving account' is generally opened in bank by salaried persons or by the persons who
have a fixed regular income. This facility is also given to students, senior citizens, pensioners,
and so on.

Image credits © newsusa.

Saving accounts are opened to encourage the people to save money and collect their savings.In
India, saving account can be opened by depositing र100 (approx. US $2) to र5000 (approx. US
$100). The saving account holder is allowed to withdraw money from the account as and when
required. The interest which is given on saving accounts is sometime attractive, but often
nominal.At present, the rate of interest ranges between 4% to 6% per annum in India. The
interest rates vary as per the amount of money deposited (lying) in the saving bank account,
scheme opted, and its maturity range. It is also subject to current trend of banking policies in a
country.
 Features of Saving Account ↓

The main features of saving account in bank are as follows:

1. The main objective of saving account is to promote savings.

2. There is no restriction on the number and amount of deposits. However, in India, mandatory
PAN (Permanent Account Number) details are required to be furnished for doing cash
transactions exceeding र50,000.
3. Withdrawals are allowed subject to certain restrictions.
4. The money can be withdrawn either by cheque or withdrawal slip of the respective bank.
5. The rate of interest payable is very nominal on saving accounts. At present it is between 4% to
6% p.a in India.
6. Saving account is of continuing nature. There is no maximum period of holding.
7. A minimum amount has to be kept on saving account to keep it functioning.
8. No loan facility is provided against saving account.
9. Electronic clearing System (ECS) or E-Banking are available to pay electricity bill, telephone
bill and other routine household expenses.
10. Generally, equated monthly installments (EMI) for housing loan, personal loan, car loan, etc.,
are paid (routed) through saving bank account.

Advantages of Saving Account ↓

The advantages of saving account are as follows:

1. Saving account encourages savings habit among salary earners and others who have fixed
income.
2. It enables the depositor to earn income by way of saving bank interest.
3. Saving account helps the depositor to make payment by way of issuing cheques.
4. It shows income of a salaried and other person earned during the year.
5. Saving account passbook acts as an identity and residential proof of the account holder.
 6. It provides a facility such as Electronic fund transfer (EFT) to other people's accounts.
7. It helps to do online shopping via facility like internet banking.
8. It aids to keep records of all online transactions carried on by the account holder.
9. It provides immediate funds as and when required through ATM.
10. The bank offers number of services to the saving account holders.

 Regular Savings Account

 Savings Plus Account

 SavingsMax Account
 No Frills Account
 Retail Trust Account
 Salary Accounts
 Payroll
 Classic
 Regular
 Premium
 Defence Salary Account
 Kid's Advantage Account
 Pension Saving Bank Account
 Family Savings Group

 Current Accounts

In economics, the current account is one of the two primary components of the balance of
payments, the other being capital account. It is the sum of the balance of trade (i.e., net revenue
on exports minus payments for imports), factor income (earnings on foreign investments minus
payments made to foreign investors) and cash transfers.

The current account balance is one of two major measures of the nature of a country's foreign
trade (the other being the net capital outflow). A current account surplus increases a country's net
foreign assets by the corresponding amount, and a current account deficit does the reverse. Both
 government and private payments are included in the calculation. It is called the current account
because goods and services are generally consumed in the current period

 Trade Current Account

 Premium Current Account
 Regular Current Account
 Reimbursement Current Account
 RFC - Domestic Account

 Fixed Deposits
A fixed deposit (FD) is a financial instrument provided by Indian banks which provides investors with a
higher rate of interest than a regular savings account, until the given maturity date . It may or may not
require the creation of a separate account. It is known as a term deposit or time deposit in Canada,
Australia, New Zealand, and the US, and as a bond in the United Kingdom. They are considered to be
very safe investments. Term deposits in India is used to denote a larger class of investments with varying
levels of liquidity. The defining criteria for a fixed deposit is that the money cannot be withdrawn for the
FD as compared to a recurring deposit or a demand deposit before maturity. Some banks may offer
additional services to FD holders such as loans against FD certificates at competitive interest rates. It's
important to note that banks may offer lesser interest rates under uncertain economic conditions. The
interest rate varies between 4 and 11 percent.[1] The tenure of an FD can vary from 10, 15 or 45 days to
1.5 years and can be as high as 10 years.[2] These investments are safer than Post Office Schemes as they
are covered under the Deposit Insurance & Credit Guarantee Scheme of India.
 Regular Fixed Deposit
 Super Saver Account
 Sweep-in Account

 Loans

In finance, a loan is a debt evidenced by a note which specifies, among other things, the
principal amount, interest rate, and date of repayment. A loan entails the reallocation of the
subject asset(s) for a period of time, between the lender and the borrower.
 In a loan, the borrower initially receives or borrows an amount of money, called the principal,
from the lender, and is obligated to pay back or repay an equal amount of money to the lender at
a later time. Typically, the money is paid back in regular installments, or partial repayments; in
an annuity, each installment is the same amount.

The loan is generally provided at a cost, referred to as interest on the debt, which provides an
incentive for the lender to engage in the loan. In a legal loan, each of these obligations and
restrictions is enforced by contract, which can also place the borrower under additional
restrictions known as loan covenants. Although this article focuses on monetary loans, in
practice any material object might be lent.

 Personal Loans
 Home Loans
 Two Wheeler Loans
 New Car Loans
 Used Car Loans
 Overdraft Against Car
 Express Loans
 Gold Loan
 Educational Loan
 Loan Against Securities

 Cards
 Credit Cards
 Credit Cardsis a card or mechanism which enables to purchase goods, travel and dine in a hotel
without making immediate payments. The holders can use the cards to credit from banks unto
45 days. The credit card relieves the consumer from the botheration cash and ensures safety. It
is a convenience of an extended credit without formality. Thus, credit card is a passport to,
SAFETY, CONVENIENCE, PRESTIGE AND CREDIT.
 Silver Credit Card
 Gold Credit Card
 Platinum Plus Credit Card.
 Debit Cards
 A debit card (also known as a bank card or check card) is a plastic card that provides the
cardholder electronic access to his or her bank account(s) at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a payee's designated bank account. The card, where
accepted, can be used instead of cash when making purchases. In some cases, the primary
account number is assigned exclusively for use on the Internet and there is no physical card.

 EasyShop International Debit Card

 EasyShop Gold Debit Card
 EasyShop International Business Debit Card

 Access Your Bank

 NetBanking
 MobileBanking
 ATM
 PhoneBanking
 MAJOR CHALLENGES FOR THE
ORGANIZATION

 Attracting & retaining talented people – The challenge always is to strike the right balance
with the new hires and the vintage employees. (Also read: Talent is a key differentiator in
banking).
 Improving Organisational capability – on how the organisation’s skills- technical and
behavioural can be adapted to meet the changing demands.
 Developing leadership skills -A great workplace aims to create a leader in each employee
through relevant skill and career development, through roles enhancements, challenging
assignments, etc. So that together all employees can create a positive working environment
towards a great workplace.
 INTRODUCTION OF PROBLEM

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial
services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC
Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market
capitalization as of November 1, 2012. The bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India. As on
December 2012, HDFC Bank has 2,776 branches and 10,490 ATMs, in 1,399 cities in India, and
all branches of the bank are linked on an online real-time basis. As of December 2012 the bank
had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net
profit of 5,167.07 crore (US$940.41 million), up 31.6% from the previous fiscal.

On March 14, 2013 an online magazine named Cobrapost.com released video footage from
Operation Red Spider showing high ranking officials and some employees of HDFC bank
willing to turn black money into white which is violation of Money Laundering Control Act.
After this Thegovernment of India and Reserve Bank of India have ordered an inquiry

Company Description

Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the
primary objective of meeting a social need of encouraging home ownership by providing long-term
finance to households. Over the last three decades, HDFC has turned the concept of housing
finance for the growing middle class in India into a world-class enterprise with excellent reputation
for professionalism, integrity and impeccable service.
Company Analysis
According to the Consolidated - Audited financial statement for the Year of 2012, total net
operating revenues increased with 34.23%, from INR 24,628.38 tens of millions to INR 33,057.95
tens of millions. The results of the period increased 31.25% reaching INR 5,273.4 tens of millions
at the end of the period against INR 4,017.69 tens of millions last year. Return on equity (Net
income/Total equity) went from 15.70% to 17.46%, the Return On Asset (Net income / Total
Asset) went from 1.45% to 1.55% and the Net Profit Margin (Net Income/Net Sales) went from
16.31% to 15.95% when compared to the same period of last year. The Debt to Equity Ratio (Total
Liabilities/Equity) was 1128.93% compared to 1086.51% of last year. Finally, the Current Ratio
(Current Assets/Current Liabilities) went from 0.51 to 0.58 when compared to the previous year.
Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a number
of organizations, which includes: Best Domestic Bank in India in The Asset Triple A Country
Awards 2005, 2004 and 2003. “Company of the Year” Award in The Economic Times Awards for
Corporate Excellence 2004-05.
Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash Management

Bank - India in 2005. The Asian Banker Excellence in Retail Banking Risk Management Award in

India for 2004. Finance Asia “Best Bank - India” in 2005, "Best Domestic Commercial Bank –

India” in 1999, 2000 and 2001 respectively and “Best Local Bank – India” in 2002 and

2003.Business Today “Best Bank in India” in 2003 and 2004.“Best Overall Local/Domestic Bank

India” in the Corporate Cash Management Poll conducted by Asia money magazine. Selected by

BusinessWorld as "one of India's Most Respected Companies" as part of The Business

World Most Respected Company Awards 2004. In 2004, Forbes Global named HDFC Bank in its

listing of Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe. In

2004, HDFC Bank won the award for “Operational Excellence in Retail Financial Services” -India

as part of the Asian Banker Awards 2003. In 2003, Forbes Global named HDFC Bank in its

ranking of “Best Under a Billion, 200 Best Small Companies for 2003”. The Financial Express

named HDFC Bank the “Best New Private Sector Bank 2003” in the FE-Ernst & Young Best

Banks Survey 2003.

Outlook Money named HDFC Bank the “Best Bank in the Private Sector” for the year 2003.

NASSCOM and economictimes.com have named HDFC Bank the ‘Best IT User in Banking’ at the
IT Users Awards 2003.

Euromoney magazine gave HDFC Bank the award for "Best Bank – India” in 1999, “Best

Domestic Bank” in India in 2000, and “Best Bank in India” in 2001 and 2002.

Asiamoneymagazine has named us “Best Commercial Bank in India 2002” For its use of

information technology, HDFC Bank has been recognized as a “Computerworld Honors Laureate”

and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate

category by Computerworld, Inc., USA. Its technology initiative has been included as a case study

in their online global archives. Business India named HDFC Bank “India’s Best Bank” in 2000. In

2000, Forbes Global named HDFC Bank in its list of “The 300 Best Small Companies” in the

world and as one of the “20 for 2001” best small companies in the world.

BUSINESS STRATEGY

 Increasing market share in India’s expanding banking

 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

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
a market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its housing
related credit facilities.
PARTICULARS DISPLAYED ON THE CREDIT CARDS

Every credit card bears the following particulars:

1. NAME OF THE CUSTOMER: Every card displays the name of customer. It should be
spelled correctly. In case, it does not, the customer can contact the customer service
cell/helpline and get the necessary correction done. This facility is provided free of cost
by the bank.

2. 16-DIGIT CARD NUMBER :A unique 16 digit number is allotted to every customer/

cardholder.

3. VALIDITY DATE : The card mentions the period through which it is valid. The card is
usually valid from the it is received by the customer unto and including the last day of the
month indicated on the card. After the card has to be renewed.

4. THE VISA HOLOGRAM AND THE VISA LOGO: The hologram and the logo ensure
that all the establishments throughout the world displaying the visa logo will accept the
card.

5. NAME OF THE ISSUING BANK: The card indicates on the top the name of the issuing
bank.

6. SIGNATURE PANEL: The back of the card contains the signature panel. The customer
must put his signature on the signature panel to prevent misuse by any other person. This
identifies the card holder. Signature on the panel would imply that card holder has given
his consent to abide by the terms and conditions governing the use of the credit card. The
card is valid is only if signed.

7. MAGNETIC STRIP: The black magnetic strip contains important information in

encoded from and needs special handling. The card should not be kept in an area where
there is a continuous magnetic field. It should not be left on the top the television. Set or
near any electronic appliance. The card should be kept away from heat and direct sun
light.
 8. PIN (PERSONAL IDENTIFICATION NUMBER): Each card holder is issued a
password or pin to enable use of the card for accessing his/her card account on the ATM
and internet and also for availing any privilege, benefit or service that may be offered by
bank on the card. The pin is communicated to the cardholder entirely at his/her risk who
shall not disclose the pin to any person and shall take all possible care to avoid its
discovery by any person. The card holder shall be liable for all transactions made with the
use of the pin whether with or without the knowledge of the cardholder

MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th
July 2010 subject to the approval of the Reserve Bank of India and the shareholders.
Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer,
Mr. Vasudev has had an illustrious career in the civil services and has held several key
positions in India and overseas, including Finance Secretary, Government of India,
Executive Director, World Bank and Government nominee on the Boards of many
companies in the financial sector. The Managing Director, Mr. AdityaPuri, 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 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. The Bank's business is supported by
scalable and robust systems which ensure that our clients always get the finest services
we offer. 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.

AMALGAMATIONS

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank
promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the
first two private banks in the New Generation Private Sector Banks to have gone through a
merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC
Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the
Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.

PLASTIC MONEY MARKET IN INDIA

FINANCIAL cards witnessed a robust growth in India in 2002-03. The number of cards in
circulation increased by almost 50 per cent. The growth in transaction value, at 95 per cent, was
even more spectacular. These results are attributable to the thriving economy which led to a large
increase in disposable income for mid- and high-level income groups in urban and metropolitan
areas.

Consumers were not only more open to the possibility of owning a financial card, but were also
more than willing to use their cards to settle dues. The status symbol aspect of owning and using
cards, too, played its part in bringing about such robust growth over the space of a single year.
Debit cards, in particular, proved immensely popular.
The number and transaction volumes of all types of financial cards grew substantially between
2002 and 2003. But it was debit cards that played the pivotal role. Consumers preferred debit
cards because they were wary of winding up spending more than they could afford.

Another contributing factor was the quiet but aggressive promotion campaign launched by key
`producers' in this sector. The growth of credit cards in number and transaction volumes in India
was low compared to other countries in the Asia-Pacific region. But there is definitely room for
further growth. Debit cards, too, have yet to realize their full potential. Among the factors that
limited growth was the comparatively slow rate of growth of ATMs in India. This is not the way
most Indians perceive this issue, but cross-country statistics very definitely bear out the position
as stated in the Executive Summary of a $1400-report on `Financial Cards in India'.

It is, however, expected that this constraint to further growth will ease up in the near future as the
advent of ever-new technologies drives down the costs of opening and operating terminals. In the
meantime, the trend in India has been to greatly enhance the networking of ATMs. Cards issued
by one bank, are increasingly accepted by ATMs owned and operated by other banks, on the
payment of a small fee. This, incidentally, is true of debit cards as well; not only of credit cards.

A large number of cardholders, however, remain unaware of this development. Debit cards
issued by, say, HSBC, can be used at all `Visa electron' enabled ATMs, including those
belonging to Citibank and HDFC bank. HSBC debit card drawls on HDFC Bank terminals cost
only Rs 55. If, on the other hand, you merely wish to check the balance in your account, you can
do so for a mere Rs 15. Credit cards are often used for `big ticket' spending in India, like dining
at 5 star hotels, and purchasing (often reimbursable) air tickets. Industry sources believe that in
future credit cards are also likely to be used in a big way for the payment of school fees, and
hospitalization expenses.

A projections for the 2003-2008 period, the number of financial cards in circulation will register
a compounded annual growth rate of nearly 51 per cent. These estimate, however, seems
conservative, representing as it does only a 2 per cent increase over the growth between 2002
and 2003. Debit cards are expected to continue to spearhead the growth of financial cards in
terms of the number of cards. Though, for a variety of reasons, this may not be the case in terms
of transaction volume.
 OBJECTIVES OF THE STUDY
1.To know about the different plastic money.

2.Tofindout the difference services offered by HDFC bank.

3. To analysis of credit and debit card of HDFC bank.

4. To Analysis the working of Credit & Debit card.

5.ToFindout the Installment Credit Facility is Provided By Many Of The cards of the HDFC.
6. Analysis to provide a convenient payment method by HDFC banks for purchases made on the

internet & over telephone.

 LITRATURE REVIEW

Plastic money or polymer money, made out of plastic, is a new and easier way of paying for

goods and services. Plastic money was introduced in the 1950s and is now inessential form of

ready money which reduces the risk of handling a huge amount of cash. It includes debit cards,

ATMs, Smart cards, etc.

More and more Indians are using them as a convenient mode of payment. The Pluspoint of

plastic money is that you won't have to carry your cash around all the time.HDFC is India's

premier housing finance company and enjoys an impeccable track record inIndiaas well as in

international markets. Since its inception in 1977, the Corporation hasmaintainedaconsistent

and healthy growth in its operations to remain the market leader

inmortgages.Itsoutstanding loan portfolio covers well over a million dwelling units.HDFC has

developed significant expertise in retail mortgage loans to different market segmentsa n d a l s o

has a large corporate client base for its housing related credit facilities.

W i t h i t s experience in the financial markets, a strong market reputation, large shareholder base

and uniqueconsumer franchise, HDFC was ideally positioned to promote a bank in the Indian

environmentIn a milestone transaction in the Indian banking industry, Times Bank

was merged with HDFCBank Ltd., effective February 26, 2000.

THE development of plastic money is one of the recent Phenomenon's in the banking sector.
Plastic money is a charge card. It is a direct charge against the limit sectioned. IT is a debt
instrument issued by some specialized companies. It is one step forward towards cashless and
chequeless society. The operation is through electronic funds transfer {EFT} installations and
inter-bank network. Credit cards are key to the opening of bank accounts for daily payments by
the card holders. Credit card has been rightly called "PLASTIC MONEY". The objective is to
provide convenience and security. It eliminates cash transactions, and protects from the danger
of pick pocketing a lot of cash. There is usually interest free credit for 30 to 45 days.These
plastic cards have the photo identity and holders signature embossed on the card. It also has the
issuing banks name and validity period of the card. The bank issuing the credit card knows well
the customer and his creditworthiness.

WHAT IS A CREDIT CARD?

A credit card is a card or mechanism which enables to purchase goods, travel and dine in a hotel
without making immediate payments. The holders can use the cards to credit from banks unto 45
days. The credit card relieves the consumer from the botheration cash and ensures safety. It is a
convenience of an extended credit without formality. Thus, credit card is a passport to, SAFETY,
CONVENIENCE, PRESTIGE AND CREDIT.

WHO CAN BE A CREDIT CARD HOLDER

The general criterion applied is a person spending capacity and not merely his income and his
wealth. The other criterion is the worthiness of the client and his average monthly balance. Most
of the banks have clear out the norms for giving the credit cards.

I. A person who earns a salary of Rs. 60,000/_ per annum is eligible for a card.

II. A reference from a banker and the employers of the applicant is insisted upon.

III. He should have a savings current account in the bank.

IV. His assets and liabilities on a particular date are reported to bank.

V. A statement of annual or monthly income.

VI. He is considered credit worthy upon to certain limit depending upon his income, assets and
expenditure. The eligible customer is asked to fill in application form giving the details of
account number , name , address , income , wealth status and a proof of his
income/wealth etc.
PARTICULARS DISPLAYED ON THE CREDIT CARDS

Every credit card bears the following particulars:

1. NAME OF THE CUSTOMER: Every card displays the name of customer. It should be
spelled correctly. In case, it does not, the customer can contact the customer service
cell/helpline and get the necessary correction done. This facility is provided free of cost
by the bank.

2. 16-DIGIT CARD NUMBER :A unique 16 digit number is allotted to every customer/

cardholder.

3. VALIDITY DATE : The card mentions the period through which it is valid. The card is
usually valid from the it is received by the customer unto and including the last day of the
month indicated on the card. After the card has to be renewed.

4. THE VISA HOLOGRAM AND THE VISA LOGO: The hologram and the logo ensure
that all the establishments throughout the world displaying the visa logo will accept the
card.

5. NAME OF THE ISSUING BANK: The card indicates on the top the name of the issuing
bank.

6. SIGNATURE PANEL: The back of the card contains the signature panel. The customer
must put his signature on the signature panel to prevent misuse by any other person. This
identifies the card holder. Signature on the panel would imply that card holder has given
his consent to abide by the terms and conditions governing the use of the credit card. The
card is valid is only if signed.

7. MAGNETIC STRIP: The black magnetic strip contains important information in

encoded from and needs special handling. The card should not be kept in an area where
there is a continuous magnetic field. It should not be left on the top the television. Set or
near any electronic appliance. The card should be kept away from heat and direct sun
light.
 8. PIN (PERSONAL IDENTIFICATION NUMBER): Each card holder is issued a
password or pin to enable use of the card for accessing his/her card account on the ATM
and internet and also for availing any privilege, benefit or service that may be offered by
bank on the card. The pin is communicated to the cardholder entirely at his/her risk who
shall not disclose the pin to any person and shall take all possible care to avoid its
discovery by any person. The card holder shall be liable for all transactions made with the
use of the pin whether with or without the knowledge of the cardholder.

DEBIT CARD

Debit card, where accepted, can be used instead of cash when making purchases. In some cases,
the primary account number is assigned exclusively for use on the Internet and there is no
physical card.

1.Offline Debit System

Offline debit cards have the logos of major credit cards (for example, Visa or MasterCard) or
major debit cards (for example, Maestro in the United Kingdom and other countries, but not the
United States) and are used at the point of sale like a credit card (with payer's signature). This
type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 2–3 days to be reflected on users’ account balances.In some countries
and with some banks and merchant service organizations, a "credit" or offline debit transaction is
without cost to the purchaser beyond the face value of the transaction, while a fee may be
charged for a "debit" or online debit transaction (although it is often absorbed by the retailer).
Other differences are that online debit purchasers may opt to withdraw cash in addition to the
amount of the debit purchase (if the merchant supports that functionality); also, from the
merchant's standpoint, the merchant pays lower fees on online debit transaction as compared to
"credit" (offline)
2.Electronic Purse Card System

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick Wertkarte), the Netherlands (Chipknip), Belgium (Proton), Switzerland (CASH) and
France (Moneo, which is usually carried by a debit card). In Austria and Germany, all current
bank cards now include electronic purses.

3.Prepaid debit cards

Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users. The primary
market for prepaid cards are unbanked people,[4] that is, people who do not use banks or credit
unions for their financial transactions, possibly because of poor credit ratings.

The advantages of prepaid debit cards include being safer than carry cash, worldwide
functionality due to Visa and MasterCard merchant acceptance, not having to worry about
paying a credit card bill or going into debt, the opportunity for anyone over the age of 18 to
apply and be accepted without regard to credit quality and the option to direct deposit paychecks
and government benefits onto the card for free.
 SCOPE OF THE STUDY

To find out the features which attract consumers towards credit cards and the parameters

they use to compare the credit cards.

To study the HDFC bank and analysis of credit and debit card of HDFC bank.The process of

bank related transaction, bank related various terms, work environment of HDFC Bank.

Different products and services provided by the bank.

Technology is revolutionizing the financial services industry through various unthinkable

innovations. The volume of cross-border trading and other financial activities is increasing
geometrically facilitated by technology. The influence of technology over product innovations in
banks is enormous. In innovation process banks have to decide which products they wish to sell,
whether they wish to build those products themselves, how they should deliver, and why they
wish to deliver them to customers. Innovation is the art of overcoming constraints toward
development. It occurs when a new or changed product or service is introduced to the market, or
when a new or changed process is used in a commercial situation. No organization can remain
happy with the existing products to cope with the competitors. Banks are no exception to this
situation. HDFC is one of the leading organizations in the modern financial world in India..
This study is one type of exploratory research using convenience sampling technique where
samples have been selected on the basis of convenience. Thus, projecting data beyond the sample
is statistically inappropriate. This study only provides information for analyzing credit and debit
card of HDFC. Though the samples were selected on a convenience basis and it may not
represent the whole population.
 RESEARCH METHODOLOGY

It describes the data collection method, The study requires the data to be collected from the
secondary source. the secondary data through the various journals and newspapers.

Data Source:

Primary data: Primary data was collected by means of questionnaires

Secondary data: Secondary data collected by referring to various books, newspapers,

magazines, journals and internet (details in bibliography)

RESEARCH -DESIGN:
A research design is a framework or blueprint for conducting the research project.

It specifies the details of the procedures necessary for obtaining the information needed to

structure and/or solve research problem

EXPLORATORY RESEARCH

One type of research design, which has as its primary objective to provision of insight into and

comprehension of the problem situation confronting the researcher.

METHODOLGY FOR COLLECTING THE DATA

 Defining the problem

 Planning the sample

 Sampling Technique

 Tools of Data collection

 Data Analysis
SAMPLING

An integral component of research design is the sampling plan. Specifically it addresses three

questions:

SAMPLING UNIT

Deciding whom to survey requires that the universe or boundaries of the market from which

data is sought data is defined so that an appropriate sample can be selected. In my study the

people surveyed are the service class and business class people who use credit cards.

SAMPLE SIZE

It depends both on the size of the budget and the degree of confidence that the marketer want to

place in the findings. The larger the sample the more likely the responses will reflect the total

universe under study. The sample size in this study includes 100 persons.

SAMPLING PROCEDURE

To carry out this project I have used non- probability sampling where the researcher selects the

most accessible population members from whom to obtain information and the researcher uses

his or her judgment to select the population members who are good source for accurate

information.

SAMPLING METHOD

It is a method to obtain data from every unit of population under study or the representative

portions of the population are to be used. Sampling is an important and all pervasive activity.
 DATA PRESENTATION / ANALYSIS

Based on the survey and the responses from the customers here are some of the findings of my

project which are represented in the form of graphs and charts.

Que1You have been using HDFC bank credit/ Debit since (min. 1 year & max. 3 year):

Number of years Number of People

1 YR 18

2 YR 23

3 YR 32

> 3 YR 27

35 Number of People
30

25

20

15

10

0
1 YR 2 YR 3 YR > 3 YR

INTERPRETATION
18% person using HDFC bank credit cards for 1 year , 23% person using credit cards for 2

years, 32% persons using card for 3 years, and 27% persons using cards for more than 3

years.
Que-2 Are you satisfied with the HDFC bank credit/ Debit card service you are using?

SATISFIED NOT SATISFIED

75 25

80

70

60

50

40

30

20

10

0
SATISFIED NOT SATISFIED

INTERPRETATION
75% persons are being satisfied with the use of HDFC bank credit cards while 25% people

who are not satisfied.

Ques-3 Rate the following parameters on the basis of significance while choosing a HDFC

bank credit/ Debit Card of any bank (1 for highest and 6 for lowest)

FEATURES RANK
Annual fees 16
Convenience 10
Forward Balance 12
Cash Advance 11

Brand Name 13
APR(interest) 38

RANK
40
35
30
25
20
15
10
5
0

INTERPRETATION

In this APR (interest) of HDFC bank credit cards has been ranked 1 followed by annual

fees, ranked 2followed by convenience ranked 3.

Ques-4 What influenced you to use or will influence you to use a HDFC bank credit/ Debit

card:

MEDIA NUMBER OF PEOPLE

Advertisement 28

Publicity 17

Representative from banks 10

Personal need 45

NUMBER OF PEOPLE
50

40

30

20

10

0
Advertisement Publicity Representative Personal need
from banks

INTERPRETATION

The purchase decision of consumer for HDFC bank credit cards has been followed most by

advertisement 30% ,publicity by 15%, representative from bank 10% , personal need 45%.
Ques-5 Which of the following factors attracted you most or will attract you most for using

HDFC bank credit/ Debit card: :

Number
REASONS/FACTORS of
people
Spending Flexibility 14

Perfect for emergencies 9

Added benefits 13
Status symbol 10

Convenient to carry 12

All of the above 42

Number of people
50

40

30

20

10

0
Spending Perfect for Added Status Convenient All of the
Flexibility emergencies benefits symbol to carry above

INTERPRETATION

14% person said that they are using HDFC bank credit cards for spending facilities

followed by added benefits 13%, followed by convenient to carry 12%, perfect for

emergency 9%, followed by status symbol 10% and all of the above facilities 42%.
Ques.6 Do you think use of the HDFC bank credit card has increased your purchasing
power:

OPINION NUMBER OF PEOPLE

Yes 78

No 12

Can’t say 10

NUMBER OF PEOPLE
90
80
70
60
50
40
30
20
10
0
Yes No Cant say

INTERPRETATION

78% person has answered yes for increasing of purchasing power by using HDFC

bank credit cards followed by 12 %who said that is no influence of credit cards

for to increase of purchasing power of consumer and 10% people are cant say.
Ques-7 Why do you think HDFC bank credit cards have increased your

purchasing power :

REASONS NUMBER OF PEOPLE

3-4 weeks time before payment 24
Impulse purchase 16
Freedom from cash 32
Cash advance 28

NUMBER OF PEOPLE
35
30
25
20
15
10
5
0
3-4 weeks time Impulse purchase Freedom from cash Cash advance
before payment

INTERPRETATION

The major reason for using HDFC bank credit cards which have increased the purchasing

power of the consumer is the freedom from cash32% followed by impulse purchase16%

followed by 3-4 weeks time before payment24% cash advance28% respectively

Ques-8 Which of the following disadvantages of HDFC bank credit cards do you

agree with :

REASONS NUMBER OF PEOPLE

Misuse if lost or misplaced 8

Financial burden 16

High interest rates 20

Cant be used at all places 8

All of the above 48

NUMBER OF PEOPLE
60

50

40

30

20

10

0
Misuse if lost Financial High interest Cant be used at All of the above
or misplaced burden rates all places

INTERPRETATION

The major reason for why 4 persons said that use of HDFC bank credit card is a

disadvantage is thefinancial burden followed by 16% persons who said that there
is misuse if lost or misplaced followed by 8% persons who replaced that it can’t

be used at all places and 8% replied that it involves high interest rate20%and all

of above 48%

Ques9.Amongst the following banks whose credit/ Debit card you are using

BANK NAME NUMBER OF PEOPLE

SBI 30
PUNJAB NATIONAL BANK 15
HDFC 20
ICICI 25
OTHER BANK 10

NUMBER OF PEOPLE
35
30
25
20
15
10 INTERPRETATION
5
0
SBI PUNJAB HDFC ICICI OTHER BANK
NATIONAL
BANK

INTERPRETATION

In the survey I found that 30% people uses SBI bank cards, 15% people uses PNB bank
cards,20% people uses HDFC bank cards, 23% people uses ICICI banks cards and 10%people
uses other bank cards.
 FINDINGS
The findings of the project through primary data collection source are summarized as follows

 SBI ranks highest in popularity out of the people surveyed followed by PNB ICICI ,

HDFC and other banks.

 The association of the people with the credit cards for most of the people is 3 year which

shows that HDFC bankcredit cards are gaining popularity in India.

 Out of the 100 people surveyed 75 people were satisfied with the current services of

HDFC bank credit cards they were using and 25 people were not satisfied with the

services.

 For most of the people the influence was their personal need followed by their friends &

relatives.

 For most of the people the use of HDFC bank credit cards was gaining importance

because of reasons like they are convenient to carry ,there is freedom from cash, then due

to facilities like cash advance, for some it was also a means of status symbol.

 75 people say that HDFC bank credit cards have increased their purchasing power while

15 people say that it has not affected the purchasing power much and 10 people are

indifferent to this question.

 32% of the people say that the reason for the increase in purchasing power is that they get

the freedom to carry much cash, for 16% of the people the reason is that they get
 involved in impulse purchase and for around 24% of the people the reason is that you

can buy today n pay later and 28% of people say about the facilities of cash advance.

 When asked to compare the HDFC bank credit cards and the debit cards the 75% of

people said that credit cards have more advantages while 5% say that debit cards are

better while around 10 % are of the view that both are equally good rest are of the

opinion that they have different features and benefits so cannot be compared.
 LIMITATIONS

 Customer feedback is of 100 people only.

 Due to financial constraints, the research work was Ghaziabad limited few areas: Kavi

Nagar, Old Bus station, sikroad, lalkuwan etc.

 Due to shortage of time the research is bound in shorter area.

 Due to financial and time limitations the sample size is small for the research.

 Due to the less interest of respondents the result of research is not so accurate.

 It is very difficult to understand the attitude of customer due to which the result of report is not so

accurate.

 Most of the professional don’t have the time due to which they don’t fill the questionnaire

carefully.

 My lack of experience in this field Effect the research

 SUGGESTION

1. As price is most preferred so annual fees should be reduced as to make price competition.

2. After sale service should be improved, by the arrangement of authorized service center.

3. The bank should promote its cards so that target consumers hear its name.

4. Proper Advertisement should be given. So that the consumer can be aware of its benefits etc.
5. Bank should provide some diferrent schemes.

6. Annual Percentage Rate should be less to attract the coustomer.

 CONCLUSION

With respect to the primary and the secondary data collected I have reached to the following
conclusions in my project. My primary data that is the survey helps me to practically analysis the
data which I collected through internet and magazines especially the reviews and critics
comments about the use of plastic money specially( credit cards and debit cards ) :

Looking at the current scenario we can well identify that the plastic money is taking a upper
trend in India due to which more and more customers getting attracted towards it.

Thus as per the survey conducted and the study made through the analysis it was found out that
credit cards do increase the purchasing power of the consumers but to a certain extent because it
gives them the liberty to pay later but the consumers are becoming smarter and have understood
the scenario quite well so we cannot say that it altogether affects the buying habits because they
have realized that will have to face the financial burden later on .Since many customers are
increasing and so the number of defaulters also. Due to the increase in tendency of non
repayments the bad debts of bank keep on increasing.

To add the popularity of the card and to increase the numbers of users the banks are more
liberalized in attracting new consumers.

The media plays a very important role in attracting the customers to choose a particular bank and
its services and it can also help to retain the acquired customers also.

Debit cards may be more readily accepted than checks, especially in other states or countries as
one need not verify the authenticity of the payment and the merchant is assured of immediate
payment.

Finely I can say that plastic money has an importance in present scenario and most of the people
want to keep money in plastic form.
 BIBLIOGRAPHY
Book referred:

1. Kothari C.R,2004, Research Methodology ,New Age International Pvt Ltd,

Pp 2,24,55,95,(2nd Ed.),

2. ShajahanDr S.,2001, Research Methods For Management,Jaico Publishing House,Mumbai,

Pp.35,128, (1st Ed)

3. DrchawlaDeepak , Research Methodology, Vikas Publishing House Pvt Ltd,(4TH Ed.)

4. Chhabra T.N,Human Resource Management, GANGAN KAPUR for DhanpatRai&co.Pvt

Ltd,(Ed.2004)

5. Polonsky Jay Michael, Waller David S.,2009,Designing and Managing a Research Project,
Tejeshwar Singh for Response Books and printed at De-Unique,New Delhi,5th Ed.,
6. Zuliu, H (1995)”Stock market Volatility and Corporate Investment”, IMF Working Paper, 95/102

7. Poterba, J. M (2000)”Stock Market Wealth and Consumption”, Journal of Economic

Perspectives, 14(2):99-118.

8. Krainer, J (2011)”Stock Market Volatility”, FRBSF Economic Letter, Western Banking, 2011-, pp1-

4.

9. Arestis, P., P.O. Demetriades and K.B. Luintel (2010)”Financial Development and Economic

Growth: The Role of Stock Markets”, Journal of Money, Credit and Banking, 33(2):16-41

10. Schwert, G. William (1989b), Business cycles, financial crises and stock volatility, Carnegie-

Rochester Conference Series on Public Policy, 31, pages 83 – 126

11. Schwert, G. William (1989a), Why does stock market volatility change over time, Journal of

Finance, 44, pages 1115 – 1154

12. Miller, Merton H. (1991), Financial Innovations and Market Volatility, Blackwell, pages 1 - 288
WEBSITE

www.hdfcindia.com

www.rbi.gov.com

www. economictimes.com

www.indiatimes.com

www.eurojournals.com

Magazines

1. Business Today

2. India Today

3. Business World

Newspapers

 Times Of India

 Economic Times

 Hindustan Times

 The Hindu
 QUESTIONNAIRE

Market Survey to study consumer behavior of HDFC bank credit cards / master card/ debit card
users towards its usage..

Name : ______________________________________________________
Address : _______________________________________________________
Phone(O): _______________________________________________________

Q.1) You have been using HDFC bank credit/ Debit since:
a. 1 year [] b. 2 years []
c. 3 years [] d. more than 3 years [ ]

Q.2) Are you satisfied with the HDFC bank credit/ Debit service you are using:
a.. satisfied []
b.. not satisfied []

Q.3) Rate the following parameters on the basis of significance while choosing HDFC bank
credit/ Debit card of any bank (1 for highest and 6 for lowest)

PARAMETERS RANK
Annual fees
Convenience
Brand Name
Annual Percentage Rate

Q.4) What influenced you to use a HDFC bank credit/ Debitcard:

a. Advertisement []
b. Publicity []
 c. Representative from banks []
d. Personal need []

Q.5) Which of the following factors attracted you most or will attract you most for using a
HDFC bank credit/Debitcard :
a. Spending Flexibility []
b. Perfect for emergencies []
c. Added benefits []
d. Status Symbol []
e. Convenient to carry []
f. All of the above []

Q.6) Do you think use of the HDFC bank credit card has increased your purchasing power:
a. Yes [ ] b. No [ ] c. can’t say [ ]

Q.7) Why do you think HDFC bank credit cards have increased your purchasing power :
a. With credit cards you get at least 3-4 weeks before you have to pay [ ]
b. Tends towards impulse purchase []
c. Gives freedom from carrying large amount of cash []
d. can get cash advance anywhere at so many cash outlets []
e. all of the above []

Q.8) Which of the following disadvantages of HDFC bank credit cards do you agree with:
a. Misuse of credit cards if lost or misplaced []
b. Lack of self control can lead to financial burden []
c. High interest rates []
d. Cannot be used at all the places []
e. All of the above []

Q.9) Amongst the following banks whose credit/ Debit card you are using:
a.SBI b. PNB
c. HDFC d. ICICI
e. Any others public sector bank f. Any others private sector bank