HDFC: Bank's Focus Area, Marketing or Operations
HDFC: Bank's Focus Area, Marketing or Operations
HDFC: Bank's Focus Area, Marketing or Operations
Management Studies, Rohini hereby declare that I have completed Summer Training Project
OPERATIONS”
SHUBHAM SINGHAL
2
PREFACE
I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite of
limitations, obstructs, hurdles and hindrance, I have toiled and worked to my optimum potential
to achieve desired goals. Being neophyte in a highly competitive world of business, I came
across some difficulties to make my objective a reality. Anyhow with the kind help, genuine
interest and guidance of my supervisor, I am able to present this hand craved effort. I have tried
my level best to conduct a research to gain a thorough knowledge about the project on the topic:
“ANALYSIS ON HDFC BANK’S FOCUS AREAR : MARKETING OR OPERATIONS”
I have tried to put my maximum effort to get the accurate statistical data. If anywhere something
is found unacceptable or unnecessary to the theme; you are welcomed with your valuable
suggestions.
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ACKNOWLEDGEMENT
I am deeply indebted to Mrs. Silky Madan for her valuable suggestions and guidance throughout
the project.
Last but not least, I would like to thank my Parents, Faculty Guide and Friends for their support,
advice and encouragement that they gave to me for the completion of this project.
SHUBHAM SINGHAL
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CHAPTER-1
INTRODUCTION
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1.1 THE TOPIC: “ANALYSIS ON HDFC BANK’S FOCUS AREA:
MARKETIONG OR OPERATIONS”
A t H D F C B a n k , I w a s a s s i g n e d w i t h t h e t o p i c a s “In Which Area more focus
Marketing or Operation” for my project work. I joined the company as an intern for the branch
banking and learned through personal banker for this analysis. The selection of the topic was to
know how the company generates business through them. Personal Banker are those
sources of a company who have their own relations and personal contacts among
common public that they use to generate business through.
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COMPANY’S PROFILE
OVERVIEW:
HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It has 88,253 permanent employees as on 31 March 2018[6] and has a
presence in Bahrain, Hong Kong and Dubai.[7] HDFC Bank is India’s largest private sector
lender by assets.[8] It is the largest bank in India by market capitalization as of February
2016.[9] It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands.
COMPANY HISTORY:
The Housing Development Finance Corporation Limited (HDFC)was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI)to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking I n d u s t r y
in 1994. The bank was incorporated in August 1994 in the name
o f 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in
January 1995.
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VISION AND MISSION
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable
track record in I n d i a a s w e l l a s i n i n t e r n a t i o n a l m a r k e t s . S i n c e i t s
i n c e p t i o n i n 1 9 7 7 , t h e C o r p o r a t i o n h a s maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwe lling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its
experience in the f i n a n c i a l m a r k e t s , a s t r o n g m a r k e t r e p u t a t i o n , l a r g e
s h a r e h o l d e r b a s e a n d u n i q u e c o n s u m e r franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.
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BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of ethical
standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values –
Operational Excellence, Customer Focus, Product Leadership and People
.
CAPITALSTRUCTURE
The authorized capital of HDFC Bank is Rs 550 crore (Rs5.5 billion).The paid -
up capital isRs424.6 crore (Rs.4.2 billion).The HDFC Group holds 19.4% of the
bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign
Institutional Investors (FIIs)a n d t h e b a n k h a s a b o u t 5 7 0 , 0 0 0 s h a r e h o l d e r s . T h e
s h a r e s a r e l i s t e d o n t h e S t o c k E x c h a n g e , Mumbai and the National Stock
Exchange. The bank's American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB'.
DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable
network of over 1229 branches spread over 444 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 e x p a n s i o n p l a n s t a k e i n t o a c c o u n t t h e n e e d t o h a v e a
p r e s e n c e i n a l l m a j o r i n d u s t r i a l a n d commercial centers 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 centers where the NSE/BSE has a strong and active member
base. The Bank also has a network of about over 2526 networked
ATMs across these cities. Moreover, HDFC Bank's
A T M n e t w o r k c a n b e a c c e s s e d b y a l l domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
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HDFC BANK SERVICES
Fixed Deposit
•Regular Fixed Deposit
•Super Saver Account
•Sweep-in Account
Loans
•Personal Loans
•Home Loans
•Two Wheeler Loans
•New Car Loans
•Used Car Loans
•Overdraft against Car
•Express Loans
•Loan against Securities
•Loan against Property
•Commercial Vehicle Finance
•Working Capital Finance
•Construction Equipment Finance
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Forex Services
•Trade Finance
•Traveler’s Cheques
•Foreign Currency Cash
•Foreign Currency Drafts
•Foreign Currency Cheque Deposits
•Foreign Currency Remittances
•Forex Plus Card
Payment Services
•Net Safe
•Prepaid Refill
•Bill Pay
•Direct Pay
•Visa Money Transfer
•E-Monies Electronic Funds Transfer
•Excise & Service Tax Payment
AccessYourBank-OneView
•Insta Alerts
•Mobile Banking
•ATM
•Phone Banking
•Branch Network
Cards
•Silver Credit Card
•Gold Credit Card
•Woman's Gold Credit Card
•Platinum plus Credit Card
•Titanium Credit Card
•Value plus Credit Card
•Health plus Credit Card
•HDFC Bank Idea Silver Card
•HDFC Bank Idea Gold Card
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2. WHOLESALE BANKING SERVICES
•Funded Services
•Non Funded Services
•Value Added Services
•Internet Banking
•Clearing Sub-Membership
•RTGS – sub membership
•Fund Transfer
•ATM Tie-ups
•Corporate Salary a/c
•Tax Collection
•Financial Institutions
•Mutual Funds
•Stock Brokers
•Insurance Companies
•Commodities Business
•Trusts
Payment Services
•Net Safe
•Bill Pay
•Insta Pay
•Direct Pay
•Visa Money
•Online Donation
•Remittances
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Problem of the HDFC Bank
For HDFC Bank, the biggest challenges include new payment banks - such as Paytm,
Reliance Industries, Tech Mahindra, NSDL and India Post - that are ready to launch
operations. These are allowed to accept deposits up to Rs 1 lakh but cannot lend.
Interestingly, whereas SBI has entered into an equity partnership with Reliance for a
payment bank and Kotak Mahindra Bank has joined hands with Bharti Airtel, HDFC
Bank has decided to take on the challenge alone.
Payment banks could be useful for investors as they would leverage the strength of
existing banks and not invest too much on physical infrastructure. Of course, there is a
lot of uncertainty about what the future holds. "There is still not much clarity on the
revenue model of payment banks. There is certainly a limitation in earning high returns
due to lending restrictions.
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SWOT Analysis
Strengths in the SWOT analysis of HDFC
HDFC bank is the second largest private banking sector in India having
2,201 branches and 7,110 ATM’s.
HDFC bank is located in 1,174 cities in India and has more than 800
locations to serve customers through Telephone banking.
The bank’s ATM card is compatible with all domestic
and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus
and American Express. This is one reason for HDFC cards to be the most
preferred card for shopping and online transactions.
HDFC bank has the high degree of customer satisfaction when compared to
other private banks.
The attrition rate in HDFC is low and it is one of the best places to work in
private banking sector.
HDFC has lots of awards and recognition, it has received ‘Best Bank’ award
from various financial rating institutions like Dun and Bradstreet, Financial
express, Euromoney awards for excellence, Finance Asia country awards
etc.
HDFC has good financial advisors in terms of guiding customers towards
right investments.
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Opportunities in the SWOT analysis of HDFC
HDFC bank has better asset quality parameters over government banks,
hence the profit growth is likely to increase.
The companies in large and SME are growing at very fast pace. HDFC has
good reputation in terms of maintaining corporate salary accounts.
HDFC bank has improved it’s bad debts portfolio and the recovery of bad
debts are high when compared to government banks.
HDFC has very good opportunities in abroad.
Greater scope for acquisitions and strategic alliances due to strong financial
position.
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COMPETITORS
ICICI BANK
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AXIS BANK
Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.
With its 3,703 domestic branches (including extension counters) and 13,814 ATMs
across the country as on 31st March 2018, the network of Axis Bank spreads across 2,163
cities and towns, enabling the Bank to reach out to a large cross-section of customers
with an array of products and services. The Bank also has ten overseas offices with
branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo;
representative offices at Dubai, Abu Dhabi, Dhaka and Sharjah and an overseas
subsidiary at London, UK.
Axis Bank is one of the first new generation private sector banks to have begun
operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of
Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance
Corporation of India (LIC), General Insurance Corporation of India (GIC), National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of
Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.
17
SBI BANK
State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation headquartered in Mumbai,
Maharashtra. The company is ranked 216th on the Fortune Global 500 list of the world's
biggest corporations as of 2017. It is the largest bank in India with a 23% market share in
assets, besides a share of one-fourth of the total loan and deposits market.[5][6]
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of
India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two "presidency banks" in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955.[7] The Government of Indiatook control of the
Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank) taking
a 60% stake, renaming it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.
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KOTAK MAHINDRA BANK
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PNB BANK
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CHAPTER 2-
RESEARCH
METHODOLOGY
AND LIMITATIONS
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2.1 OBJECTIVES OF STUDY
To acquire new customer by convincing them and to promote the benefits of those
whichare provided by the bank.
To find the different way of convincing customers.
To study brand image of the bank.
To increase the business of the bank.
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact, the research design is the conceptual structure within which research is conducted. This
research was Descriptive in nature.
DESCRIPTIVE RESEARCH
The research was a descriptive research as it was concerned with specific predictions, with
narrations of facts and characteristics concerning Net Banking Services provided by HDFC
Bank.
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2.3 SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
Universe of study:
universe of the study means all the persons who are the customers of HDFC Bank.
Accessible:
It covered all the individuals who are the customers of HDFC Bank in India who are within our
reach. In this study accessible population was customers of HDFC Banks in India.
Sample Size:
A sample of minimum respondents was selected from various areas of Delhi. An effort was made
to select respondents evenly. The survey was carried out on 50 respondents of HDFC Bank.
Sample Unit:
In this project sampling unit consisted of the various individuals who had there bank accounts
with HDFC Bank.
Sampling Frame:
It consisted of various sources from where information about the respondent is extracted. Mainly
personal links and employees of HDFC Bank, Delhi are used for getting information about the
respondents.
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2.4 LIMITATIONS OF THE STUDY
Non-representative sample:
In this research project a sample survey was conducted. A sample of 50 respondents was
selected. So such sample size cannot be said to be the true representative of the universe.
Shortage of time:
The time period of study was very limited. It is very difficult to have in detail study on project
work due to limited time period. The period of 12 to 15 weeks is not enough for the proper study
of the project.
Inadequate data:
The data provided was not up to the marks due to which we faced problems in this survey.
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CHAPTER 3-
CONCEPTUAL
DISCUSSION
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Marketing Strategy
Marketing strategy is a logic by which business unit hopes to achieve the marketing
objectives. To be successful the company must do a better job than competitors of
satisfying target consumers. Marketing strategy is the combination of product, price &
communication strategies. Marketing strategies must be geared to the needs of the
customers but also to the strategies of competitors. Once the company has decided on its
overall competitive marketing strategy, it is ready to begin planning the details of
marketing mix. The marketing mix is the set of controllable, tactical marketing tools that
the firm blend to produce the response it wants in the target market. The marketing mix
consists of everything the firm can do influence the demand for its product. The many
possibilities can be collected into four groups of variables known as the 4p’s.: product,
price, place& promotion. In a competitive market where business have easy access &
profits are worth while pursuing, the market will be lively & active. But at the end of the
day the profit will decline & the market will less attractive.
Operating Strategy
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CHAPTER-4
DATA
ANALYSIS
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Q1.Your Age?
Age
18-23
24-29
30-35
35 & above
Interpretation
18-23 Years 10 Person
24-29 Years 20 Person
30-35 Years 10 Person
35 Years and above 10 Person
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Q2. Marital Status?
35
30
25
20
15
10
0
Married Unmarried
Interpretation
Married 32 Person
Single 18 Person
No. of Children Nil
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Q3.Educational Qualification?
•Undergraduate □
•Graduate □
•Postgraduate □
Sales
Undergraduate
Graduate
Post Gradate
Interpretation
Undergraduate 10 Person
Graduate 22 Person
Postgraduate 18 Person
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•Less than five year’s □
•More than five year’s □
No. of years
< 5 years
2nd Qtr
Interpretation
Less than five year’s 17 Person
More than five year’s 33 Person
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Q5. Your Occupation?
•Business
•Profession
•Service
Sales
Business
Profession
Service
Interpretation
Business- 13 Persons
Profession 17 Persons
Service 20 Persons
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Q6. Your annual household income?
•Less than 2 lacs
•Between 2 to 5 lacs
•Between 5to 8 lacs
•More than 8 lacs
Sales
< 2 lacs
2-5 lacs
5-8 lacs
> 8 lacs
Interpretation
33
Q7.What is your perception about different products/services provided by HDFC bank?
•Lucrative □
•Not lucrative □
•No idea □
Perception
Lucrative
Not Lucrative
No Idea
Interpretation
Lucrative -12 Persons
Not lucrative -33 Persons
No idea -5 Persons
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Q8.Do you want to open an account with HDFC bank?
•Yes
• No
•Will tell later
Sales
Yes
No
Will Tell Later
Interpretation
Yes- 8 Persons
No -5 Persons
Will tell later -37 Persons
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Q9.Do you have all the documents which are required to open an account?
•Yes
•No
Documents
Yes
No
Interpretation
Yes – 15 Persons
No – 35 Persons
36
Q10. Are you aware that the bank provides you free phone banking & net banking
services. If you open a new savings account with HDFC bank?
Yes
No
Banking Facilities
Yes
No
Interpretation
Yes- 32 Persons
No- 18 Persons
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Q11. Are you aware of the different terms and conditions which are very essential to maintain an
account in HDFC bank?
Yes
No
T&C
Yes
No
Interpretation
Yes -15 Persons
No 35 Person
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Q12. Do you know about HDFC Bank’s recruitment policies related to personal banker?
•Yes
•No
Policies
Yes
No
Interpretation
Yes -38 Persons
No- 12 Persons
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CHAPTER-5
SUGGESTIONS
AND
RECCOMENDATIONS
SUGGESTIONS:
Finally some recommendations for the company are as follow:-
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•T o m a k e p e o p l e a w a r e a b o u t t h e b e n e f i t o f b e c o m i n g a c u s t o m e r o f H D F C
B a n k , following activities of advertisement should be done through
1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
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CHAPTER-6
FINDINGS
FINDINGS:
42
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good
number of employees on board and is recruiting personal banker heavily to take the headcount to
many more. It is on the brim of increasing its customers through its attractive schemes and offer.
The project opportunities provided was market segmentation and identifying p r o s p e c t i v e
customers in potential geographical location and convincing them to attract
more customers so that new business opportunities of the bank can be explored.
Through this project, it could be concluded that people are not much aware about
the various products of the bank and many of t h e m n o t i n t e r e s t e d t o o p e n a n
a c c o u n t , t o i n v e s t m o n e y a t a l l . s e r v i c e s w a s c o n s i d e r e d a s unsought good
which require hard core selling, but in changing trend in income and
people becoming financially literate, the demand for banking sector is increasing day by day.
So, at last the conclusion is that there is tough competition ahead for the company from its
major competitors in the banking sector. Last but not the least I would like to thank
HDFC Bank for giving me an opportunity to work in the field of Marketing and
Operation.
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CHAPTER 7-
BIBLIOGRAPHY
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1. BOOKS
M a r k e t i n g M a n a g e m e n t ( 1 0 th E d i t i o n ) ,
M a r k e t i n g M a n a g e m e n t ( 3 rd E d i t i o n ) ,
R e s e a r c h Methodology (2nd Edition),
Research Methodology (3rd Edition).
AUTHORS:
Philip Kotler ,V.S. Ramaswamy , C.R. Kothary , S.P. Kasande
2. NEWS PAPERS
• Times of India • Financial Express
3. WEBSITES
www.hdfcbank.com, www.google.com
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CHAPTER 8-
Annexure
46
QUESTIONNAIRE
DearSir/Madam,
Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
Contact No :®………………( O)……………… (M)………………………
City: ………...............Pin: ………………….State: ………………………
I am a student of Jagan Institute of Management Studies presently doing a project on
“INWHICH AREA MORE FOCUS MARKETING OR OPERATION”
.I request you to kindly fill the questionnaire below and I assure you that the data generated
shall be kept confidential.
2 .Education Qualification.
Undergraduate □
Graduate □
Postgraduate □
3. Marital Status .
•Married □
•Single □ No. of Children: __________
5. Occupation.
•Business
•Profession
•Service(Please mention below the type of business/profession you are. In incase of service
please mention your organization name and designation)
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7. What is your perception about different products and services offered by HDFC Bank?
•Lucrative □
•Not lucrative □
•No idea □
9. Do you have all the documents which are required to open an account?
Yes
No
Will tell later
10. Are you aware of that HDFC Bank provide you free phone banking & net banking services.If
you open a new savings account with HDFC bank?
Yes
No
11. Are you aware of different terms and conditions which are very much essential to maintain
an account at HDFC Bank?
•Yes □
•No □
12.Do you know about HDFC Bank’s recruitment policies related to personal banker?
•Yes □
•No □
Date:
Place: Signature
ThankYou
48