HDFC Competition Analysis-sukh

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    Summer Project Certificate

    This is to certify that Mr. / Ms. _____________________________ Roll

    No. _________ a student of PGDM has worked on a summer project

    titled ____________________________________________

    __________________________________________________________

    ____________ at ______________________ after Trimester!!! in

    partial fulfillment of the re"uirement for the Post Graduate Diploma in

    Mana#ement pro#ramme. This is his/her ori#inal work to the $est of my

    knowled#e. Date%___________ &i#nature ________________

    '_________________________(

    Name of Faculty

    )!MT*+, &*-

    ACKNOWLEDGEMENT

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    The purpose of this project report is not whose name appears $ut to acknowled#e the alue

    additions ant contri$utions. &uccess can neer $e achieed throu#h indiidual effort $ut throu#h

    #uidance and teamwork.

    ! would like to take this opportunity to thank my industry #uide Mr. RACHIT SRIVASTAV

    !RANCH MANAGER "DWARKA# and my faculty #uide $rof R.%. MASILAMANI who

    helped me to complete this challen#in# task. ! would like to e0tend my #ratitude to Mr&.

    MANISHA VARMA $er&o'al !a'(er HDFC )a'( "D*ar(a#and MR. VIVEK $ATHAK

    $er&o'al !a'(er Aut+or,-er HDFC )a'( "D*ar(a# who went out of their way to #uide me

    throu#hout my project and #ae ariedinsi#hts. ! am #rateful to MR. SH!HANKAR !OSE

    !RANCH MANAGER "ANAND NIKETAN# for his constant interest1 inolement and

    support.

    )esides1 ! thank all those inisi$le hands without whose contri$ution this project would not hae

    $een possi$le.

    ! would like to thank all the concerned e0ecuties and staff mem$ers of HDFC )a'( and other

    $ank staff mem$ers who acted as a constant support for me and also helped $y proidin#

    alua$le insi#hts.

    ! would like to e0press my #ratitude towards my parents for their moral and financial support in

    completion of this project. ast $ut not least ! would like to thank my collea#ues and friends for

    their alua$le support durin# my summer internship.

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    TA!LE OF CONTENTS

    Page No

    E/ECTIVE

    SMMAR0111111111111111111111111111111 2

    INTRODCTION111111111111111111111111111.3

    COM$AN0 OVERVIEW...11111111111111111111111..4

    O!%ECTIVE OF THE STD0111111111111111111111..56

    HDFC !ANK $RODCT $ORTFOLIO11111111111111111..54

    STRATEGIES OF HDFC !ANK 111111.11111111111111.78

    RETAIL !ANKING9 ANAL0SIS11111111111111111111.:;

    HDFC !ANK RETAIL $RODCTS1111111111111111111:6

    COM$ETATIVE ANAL0SIS111111111111111111111...; RECOMMENDATIONS11111111111111111..83

    REFERENCES

    E/ECTIVE SMMAR0

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    The pace of deelopment for the !ndian $ankin# industry has $een tremendous oer the past

    decade. -s the world reels from the #lo$al financial meltdown1 !ndia2s $ankin# sector has $een

    one of the ery few to actually maintain resilience while continuin# to proide #rowth

    opportunities1 a feat unlikely to $e matched $y deeloped markets around the world. Transition

    from class $ankin# to mass $ankin# and increased customer focus is drastically chan#in# the

    landscape of !ndian $ankin#. *0pansion of retail $ankin# has a lot of potential as retail assets are

    just 334 of the total $ankin# assets and the contri$ution of retail loans to GDP is a mere 54 in

    !ndia compared to 674 in +hina. This report discusses the retail products aaila$le with ,D8+

    $ank and compares them with the products of competitor $anks. This paper descri$es work

    undertaken to determine $oth retail customer and staff perceptions of those factors which

    determine serice "uality. The paper presents some conclusions of si#nificance for retail

    $ankin# in particular1 and serice proiders in #eneral. !t proides a useful comparison of

    different $anks with its key competitors i.e. !+!+! $ank1 -9!& $ank1 :;T-: M-,!NDR-

    $ank and P??

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    employees as well as with the customers. The information was #ained after continuous

    interaction from the customers and the different $anks and analyAin# their culture.

    .

    INTRODCTION

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    I'tro?uct,o' to )a'(,'@

    C+a'@,'@ face of )a'(,'@ a& a &er,ce ,'?u&try

    )ankin# in !ndia has chan#ed with time1 it has seen a reolution and it has $een #rowin#. !ndiahas e0perienced tremendous reform in financial and $ankin# sector. The jump of economy from

    the manufacturer industry1 which used to $e the most reenue #eneratin# industry1 to the serice

    industry has seen the makeoer of the $ankin# sector. The $ankin# sector is one of the lar#est

    serice proidin# sectors in !ndia. These serices are of utmost importance to the customers as it

    takes care of their financial needs1 in fact een maintain them. Now this concept of $anks as the

    serice proider has underwent transformation as the concept of serices is #rowin# and has

    $ecome more and more comple0. !n !ndia the $ankin# sector is se#re#ated as pu$lic or priate

    sector $anks1 cooperatie $anks and re#ional rural $anks. 8orei#n $anks hae $een #ien a

    different head followed $y upcomin# forei#n $anks in this section. Due to this the customers

    demand has seen a major rise.

    These chan#es has #ien rise to the need of the $ankin# industry to analysis their competition

    and to hae a defined marketin# strate#y 1 to $ecome the leader in proidin# the $ou"uet of

    serices at customers end as well as #iin# them the $est financial adice. The !ndian $ankin#

    industry with time has achieed an astonishin# and tremendous #rowth rate. @hen asked from

    $ank e0ecuties or rather the e0pert in the field1 the reenue from the $anks has $een #rowin#

    and has recorded positie results for the year 3BBC6B. -ccordin# to them the #rowth must hae

    $een around 673B4 and is e0pected to #row more than 3B4 in the upcomin# years.

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    8i#ure Projected #rowth rate for $anks

    Ne* aBBroac+

    The deelopment of technolo#y has led to a more conenient retail $ankin# system. -TM1

    Mo$ile $ankin#1 &M& $ankin# and most popular these days net $ankin# facilities are aaila$le to

    and $ein# increasin#ly aailed of $y customers. @ith more persons open to the concept of easy

    $ankin#1 all the leadin# $anks hae started strate#iAin# on the concept of conenient $ankin#

    lookin# at the fast #rowin# needs of the customers. Now the $anks are striin# to achiee this $y

    hain# a cost effectie approach1 which means that to achiee ma0imum of profit $ut with

    minimum of cost. The $anks now hae such a close competitie an#le in almost all of its

    products and serices within the $ankin# area that it has $ecome difficult for the customers to

    distin#uish $etween them. - pro#ressiely #rowin# $alance sheet1 hi#her pace of credit

    e0pansion1 e0pandin# profita$ility and productiity akin to $anks in deeloped markets1 lower

    incidence of nonperformin# assets and focus on financial inclusion hae contri$uted to makin#

    !ndian $ankin# i$rant and stron#. !ndian $anks hae $e#un to reise their #rowth approach and

    reealuate the prospects on hand to keep the economy rollin#. The way forward for the !ndian

    $anks is to innoate to take adanta#e of the new $usiness opportunities and at the same time

    ensure continuous assessment of risks.8

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    Glo)al l,'(a@e

    ;ur country with time has seen many colla$orations in this sector with forei#n $anks takin#

    lar#e stakes in !ndian $anks. This has widened the horiAons for $ankin# serices considera$ly

    and ena$led operations on a much hi#her scale to meet the #rowin# demands of customers. &ome

    of the forei#n $anks operatin# successfully in !ndia are -)N-MR;1 +iti )ank1 Deutsche

    )ank1 ,&)+1 &tandard +hartered )ank and etc.

    The !ndian $anks hae now $ecome focused on $ein# customer centric and the future challen#e

    in front of them is to $ecome a #lo$al $rand e0ample $y proidin# an e0hilaratin# e0perience to

    the customers in the serice industry without compromisin# on the profit. 8or this the $anks need

    to hae a competition analysis of their competitie $anks and $y $ein# a$le to deelop uni"ue

    marketin# strate#y for penetratin# within the market.

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    HDFC !ANK comBa'y oer,e*

    A)out HDFC

    ,D8+ $ank was amon# the few priate $anks to hae started their operations in 6CC after the

    #oernment of !ndia allowed new priate $anks to emer#e in !ndian $ankin# sector. ,ousin#

    deelopment and 8inance +orporation of !ndia has $een credited with $ein# one of the $est

    financial $ank in !ndia with the track record of #iin# the $est financial adice to its customers

    and offerin# the $est products and serices in $ankin# area. Due to its impecca$le serice offered

    to the customer as per their demand and conenience1 ,D8+ $ank has $ecome one of the leadin#

    $anks in !ndia offerin# customer serice. !n fact customers credit it for $ein# one of the finest in

    customer serice leadin# to easy and conenient $ankin#. @ith its e0perience in the financial

    markets1 a stron# market reputation1 lar#e shareholder $ase and uni"ue consumer franchise1

    ,D8+ has positioned itself as $ein# the $ank that cares for the customers. ,D8+ )ank proides

    a ariety of wholesale1 retail1 and depository financial serices throu#h more than 61BB $ranches

    and some E1BBB -TMs throu#hout !ndia. *sta$lished $y the ,ousin# Deelopment 8inance

    +orporation in 6CC1 the $ank offers deposit accounts1 loans1 credit cards1 insurance1

    inestments1 and related serices. ,D8+ )ank tar#ets indiidual customers in the middle and

    upperclass1 as well as trusts1 small $usinesses.

    ComBa'y Brof,le

    ,D8+ $ank is a leadin# priate sector $ank and financial serices company in !ndia. The $ank

    aspires to $e the preferred proider of financial serices to upper and middleincome indiiduals

    and leadin# corporations in !ndia. The strate#y of the $ank oer the years hae $een to proide a

    comprehensie ran#e of financial products and serices for the customers throu#h multiple

    distri$ution channels1 with hi#h "uality serice and superior e0ecution of the serices offered.

    The $ank principally deals into mainly three $usiness actiities which can $e cate#oriAed as%retail $ankin#1 wholesale $ankin# and treasury operations.

    The $ank has achieed tremendous #rowth since it started its operations in =anuary 6CC7. ;er

    the last fie years it has e0panded operations from 3E6 $ranches and FE3 -TMs in 633 cities to

    6163 $ranches and 31CB -TMs in 73F cities in !ndia as on Decem$er E61 3BB. -dditionally

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    the )ank has a $ranch in )ahrain and representatie offices in the

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    !nestorsK Grieance '&,-R*( +ommittee

    Risk Monitorin# +ommittee

    +redit -pproal +ommittee

    The Premises +ommittee

    Nomination +ommittee

    8raud Monitorin# +ommittee

    ComBe'&at,o' Comm,ttee

    The +ompensation +ommittee reiews the oerall compensation structure and policies of the

    )ank with a iew to attract1 retain and motiate employees1 consider #rant of stock options to

    employees1 reiewin# compensation leels of the )ankKs employees isOis other $anks and

    industry in #eneral. The )ankKs compensation policy is to proide a fair and consistent $asis for

    motiatin# and rewardin# employees appropriately accordin# to their jo$ / role siAe1

    performance1 contri$ution1 skill and competence. The +ommittee met E 'three( times durin# the

    year.

    T+e $rem,&e& Comm,ttee

    The Premises +ommittee approes purchases and leasin# of premises for the use of )ankKs

    $ranches1 $ack offices1 -TMs and residence of e0ecuties in accordance with the #uidelines laid

    down $y the )oard. The +ommittee is chaired $y Mrs. Renu :arnad. The +ommittee met

    'four( times durin# the year.

    Frau? Mo',tor,'@ Comm,ttee

    Pursuant to the directions of the Resere )ank of !ndia1 the )ank has constituted a 8raud

    Monitorin# +ommittee1 e0clusiely dedicated to the monitorin# and followin# up of cases of

    fraud amountin# to Rs.6 crore and a$oe. The o$jectie of this +ommittee is the effectie

    detection of frauds and immediate reportin# thereof to re#ulatory and enforcement a#encies and

    actions taken a#ainst the perpetrators of frauds.

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    Cu&tomer Ser,ce Comm,ttee

    +ommittee monitors the "uality of serices rendered to the customers and also ensures

    implementation of directies receied from R)! in this re#ard. The terms of reference of the

    +ommittee are to formulate comprehensie deposit policy incorporatin# the issues arisin# out of

    death of a depositor for operations of his account1 the product approal process1 and the annual

    surey of depositor satisfaction and the triennial audit of such serices. The +ommittee met

    'four( times durin# the year.

    CorBorate @oer'a'ce

    ,D8+ )ank reco#niAes the importance of #ood corporate #oernance1 which is #enerally

    accepted as a key factor in attainin# fairness for all stakeholders and achiein# or#aniAationalefficiency. This +orporate Goernance Policy1 therefore1 is esta$lished to proide a direction and

    framework for mana#in# and monitorin# the $ank in accordance with the principles of #ood

    corporate #oernance.

    Co?e of corBorate @oer'a'ce

    The )ank $eliees in adoptin# and adherin# to $est reco#niAed corporate #oernance practices

    and continuously $enchmarkin# itself a#ainst each such practice. The )ank understands and

    respects its fiduciary role and responsi$ility to shareholders and stries hard to meet their

    e0pectations. The )ank $eliees that $est $oard practices1 transparent disclosures and

    shareholder empowerment are necessary for creatin# shareholder alue. The )ank has infused

    the philosophy of corporate #oernance into all its actiities. The philosophy on corporate

    #oernance is an important tool for shareholder protection and ma0imiAation of their lon# term

    alues. The cardinal principles such as independence1 accounta$ility1 responsi$ility1

    transparency1 fair and timely disclosures1 credi$ility etc. sere as the means for implementin# the

    philosophy of corporate #oernance in letter and spirit.

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    $ro@re&&

    The )ank2s staffin# needs continued to increase durin# the year particularly in the retail $ankin#

    $usinesses in line with the $usiness #rowth. Total num$er of employees increased from 6F

    as of MarchE61 3BB5 to 36FF as of March E61 3BBF. The )ank continues to focus on trainin# itsemployees on a continuin# $asis1 $oth on the jo$ and throu#h trainin# pro#rams conducted $y

    internal and e0ternal faculty. The )ank has consistently $elieed that $roader employee

    ownership of its shares has a positie impact on its performance and employee motiation. The

    )ank2s employee stock option scheme so far coers around CBBB employees.

    ,D8+ )ank has demonstrated ery consistent deliery of performance oer the last so many

    years and has already notched up its place as the one of the lar#est priate sector $ank in the

    country and the #rowth momentum is e0pected to continue. The $ank has stepped up to retail

    customer ac"uisition with deposit accounts increasin# from 5.3 million to .F million and total

    cards issued 'de$it and credit cards( increasin# from F million to C.3 million 'appro0(. Not only

    the retail $ankin# of ,D8+ is $loomin# day $y day $ut its serices offered in wholesale $ankin#

    has also #ien tremendous #rowth to the $ank. The online $ankin# system i.e. net $ankin# has

    $een an eye attraction for the customers as it #ies them fast and conenient $ankin#. -s already

    mentioned a$out its #rowin# distri$ution network the $ank is continually plannin# for e0pansion

    of the $ranches of the $ank. +ustomers are efficiently sericed throu#h telephone $ankin# also.

    The )ankKs e0pansion plans take into account the need to hae a presence in all major industrial

    and commercial centers where its corporate customers are located as well as the need to $uild a

    stron# retail customer $ase for $oth deposits and loan products. )ein# a clearin#/settlement $ank

    to arious leadin# stock e0chan#es1 the )ank has $ranches in the centers where the N&*/)&* has

    a stron# and actie mem$er $ase. @ith the e0cellent distri$ution network ,D8+ aspires to hae

    as stron# position in the market and with the customers.

    ,D8+ $ank has always aspired to $ecome a world class $ank and has $een tryin# to adopt an

    efficient and effectie approach to understand the eer chan#in# customer demands and to offer

    them superior serice. ,D8+ thus has $een marketin# itself with the ta#line sayin# Iwe

    understand your worldJ.

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    Now if one o$seres the reenue earned $y ,D8+ durin# last year than it can $e said that

    reenue #rowth was drien principally $y an increase in net income. The other income 'non

    interest reenue( increased primarily due to fees and commissions,profit/ 'loss( on realuation /

    sale of inestment and income from forei#n e0chan#e and deriates income. ;peratin# 'non

    interest( e0penses increased due to hi#her infrastructure and staffin# e0penses in relation to the

    e0pansion in the $ranch network1 and #rowth in the retail loan and credit card $usinesses.

    net income

    69%

    fee income

    18%

    forex income

    9%

    treasury and other

    operating income

    4%

    net revenue breakdown FY09

    8i#ure ,D8+ $ank reenue $reakdown

    A*ar?& a'? ac+,eeme't&

    ,D8+ has earned seeral awards for its #rowth and pro#ressie serices offered to the

    customers. - few are listed $elow%

    +orporate $est $ank award Dun and )radstreet -merican *0press corporate $est $ank

    award 3BBF

    )est )ank -ward in the priate sector cate#ory outlook money and NDT> profit

    )est Retail )ank in !ndia The -sian $anker e0cellence in retail financial serices

    awards.

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    *uromoney -wards 3BBC K)est )ank in !ndiaK

    *conomic Times )rand *"uity Nielsen Research annual surey 3BBC Most Trusted

    )rand Runner

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    O!%ECTIVE OF THE STD0

    The o$jectie of this study is to study the products aaila$le with ,D8+ $ank in the retail

    cate#ory and to understand and analyAe the marketin#. -nother o$jectie is to compare them

    with products proided $y other $anks in the retail cate#ory. The $anks chosen for competitie

    analysis are

    !+!+! $ank

    -9!& $ank

    :;T-: M-,!NDR- $ank

    P

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    ,ence1 the study seeks to deelop a common understandin# of serice "uality in the $ankin#

    industry across different customer se#ments. The models of marketin# like ser"ual model hae

    $een used to analyAe serices of ,D8+ and strate#ic marketin# of ,D8+ $ank. !t helps ,D8+

    $ank to maintain a competitie ed#e.

    The data was collected throu#h two sources which help me understand the workin# of ,D8+

    $ank and also make analysis for the project. The data was collected throu#h followin# ways%

    &econdary sources &econdary data proide a startin# point for study and offer the alua$le

    source of information. The secondary data was the most important source for my project $ecause

    it helped in collectin# desired information

    Primary sources Primary data are data freshly #athered for a specific purpose. The arious

    sources of primary data for my project are as follows.

    )anks.

    +ustomers of different $anks

    People from industries

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    HDFC !ANK $RODCT $ORTFOLIO

    $ro?uct& a'? &er,ce& at a @la'ce

    ,D8+ )ank mainly proides three kinds of $ankin# serices%

    Personal )ankin#

    NR! )ankin#

    @holesale )ankin#

    personal an!ing

    55%"holesale an!ing

    28%

    #$ an!ing 17%

    8i#ure product $reakup accordin# to the customer preferences

    !f the customer needs to deal in forei#n currency and keep ta$s on e0chan#e rates1 transfer funds

    to !ndia1 make payments etc1 ,D8+ )ank has a ran#e of products and serices that a customer

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    can choose from to transact smoothly1 efficiently and in a timely manner. ,D8+ )ank offers

    "uick1 economical and conenient options to remit and transfer funds to !ndia.

    @ith ,D8+ )ank2s payment serices1 one can $id #ood$ye to "ueues and paper work. ,D8+2s

    ran#e of payment options make it easy to pay for a ariety of utilities and serices. )ank offers

    Priate )ankin# serices to hi#h net worth indiiduals and institutions.

    +orporate )ankin# reflects ,D8+ )ank2s stren#ths in proidin# corporate clients1 a wide array

    of commercial1 transactional and electronic $ankin# products. ,D8+ )ankacts as an actie

    medium $etween the #oernment and the customers $y means of arious serices.

    ,D8+ deals with $asically three areas which can $e se#mented as%

    @holesale $ankin# serices

    Retail $ankin# serices

    Treasury

    !t has entered the $ankin# consortia of oer 7B corporate for proidin# workin# capital finance1

    trade serices1 corporate finance and merchant $ankin#. !t is also proidin# sophisticated product

    structures in areas of forei#n e0chan#e and deriaties1 money markets and de$t tradin# and

    e"uity research.

    W+ole&ale !a'(,'@ Ser,ce&

    The )ankKs tar#et market ran#es from lar#e1 $luechip manufacturin# companies in the !ndian

    corporate to small midsiAed corporate and a#ri$ased $usinesses. 8or these customers1 the

    )ank proides a wide ran#e of commercial and transactional $ankin# serices1 includin#

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    workin# capital finance1 trade serices1 transactional serices1 cash mana#ement1 etc. The $ank is

    also a leadin# proider of structured solutions1 which com$ine cash mana#ement serices with

    endor and distri$utor finance for facilitatin# superior supply chain mana#ement for its corporate

    customers. ,D8+ )ank has made si#nificant inroads into the $ankin# consortia of a num$er of

    leadin# !ndian corporate includin# multinationals1 companies from the domestic $usiness houses

    and prime pu$lic sector companies. !t is reco#niAed as a leadin# proider of cash mana#ement

    and transactional $ankin# solutions to corporate customers1 mutual funds1 stock e0chan#e

    mem$ers and $anks.

    Reta,l !a'(,'@ Ser,ce&

    The o$jectie of the Retail )ank is to proide its tar#et market customers a full ran#e of financial

    products and $ankin# serices1 #iin# the customer a onestop window for all his/her $ankin#

    re"uirements. The products are $acked $y worldclass serice and deliered to customers

    throu#h the #rowin# $ranch network1 as well as throu#h alternatie deliery channels like

    -TMs1 Phone )ankin#1 Net )ankin# and Mo$ile )ankin#.

    ,D8+ )ank was the first $ank in !ndia to launch an !nternational De$it +ard in association with

    >!&- '>!&- *lectron( and issues the Master+ard Maestro de$it card as well. The )ank

    launched its credit card $usiness in late 3BB6. )y March 3BBC1 the $ank had a total card $ase

    'de$it and credit cards( of oer 6E million. The )ank is also one of the leadin# players in the

    Imerchant ac"uirin#J $usiness with oer FB1BBB Pointofsale 'P;&( terminals for de$it / credit

    cards acceptance at merchant esta$lishments. The )ank is well positioned as a leader in arious

    net $ased )3+ opportunities includin# a wide ran#e of internet $ankin# serices for 8i0ed

    Deposits1 oans1 )ill Payments1 etc.

    Trea&ury

    @ithin this $usiness1 the $ank has three main product areas 8orei#n *0chan#e and Deriaties1

    ocal +urrency Money Market De$t &ecurities1 and *"uities. These serices are proided

    throu#h the $ankKs Treasury team. To comply with statutory resere re"uirements1 the $ank is

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    re"uired to hold 374 of its deposits in #oernment securities. The Treasury $usiness is

    responsi$le for mana#in# the returns and market risk on this inestment portfolio.

    $ERSONAL !ANKING

    Sa,'@&

    accou't

    Curre't

    accou't

    F,e?

    ?eBo&,t&

    Loa'& I'e&tme't&

    > I'&ura'ce

    Car?&

    Re#ular

    &ain#s

    -ccount

    Plus

    current

    account

    Re#ular

    fi0ed deposit

    Personal

    oans

    Mutual

    8unds

    !nsurance

    &iler +redit

    +ard

    &ain#s Plus

    -ccount

    Trade

    current

    account

    7 year Ta0

    sain#s

    fi0ed

    deposits

    Two

    @heeler

    oans

    )onds Gold +redit +ard

    &ain#sMa0

    -ccount

    Premium

    current

    account

    &uper saer

    facility

    New +ar

    oan

    8inancial

    Plannin#

    @omanKs Gold

    +redit +ard

    &enior

    +itiAens

    -ccount

    Re#ular

    current

    account

    &weep in

    facility

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    No 8rills

    -ccount

    R8+

    domestic

    account

    ;erdraft

    a#ainst +ar

    Mudra Gold

    )ar

    Titanium +redit

    +ard

    !nstitutional

    &ain#s

    -ccount

    8le0i

    current

    account

    *0press

    oans

    >alue plus

    +redit +ard

    Payroll &alary

    -ccount

    -pe0

    current

    account

    oan a#ainst

    &ecurities

    ,ealth plus

    +redit +ard

    +lassic &alary

    -ccount

    Ma0

    current

    account

    oan a#ainst

    Property

    ,D8+ )ank !dea

    &iler +ard

    Re#ular &alary

    -ccount

    Merchant

    adanta#e

    current

    account

    +ommercial

    >ehicle

    8inance

    ,D8+ )ank !dea

    Gold +ard

    Premium

    &alary -ccount

    Merchant

    adanta#e

    plus

    current

    account

    +onstruction

    *"uipment

    8inance

    De$it +ards

    Defense

    &alary -ccount

    Recurrin#

    deposits

    @orkin#

    +apital

    8inance

    *asy

    &hop!nternational

    De$it +ard

    :idKs Demat *asy &hop Gold

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    -danta#e

    -ccount

    account De$it +ard

    Pension

    &ain# )ank

    -ccount

    &afe

    deposits

    lockers

    *asy

    &hop!nternational

    )usiness

    De$it +ard

    8amily

    &ain#s

    -ccount

    *asy &hop

    @oman2s

    -danta#e

    De$it +ard

    :isan No

    8rills &ain#s

    -ccount

    Prepaid +ards

    :isan +lu$

    &ain#s

    -ccount

    8ore0 plus card

    :isan card

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    WHOLESALE !ANKING AND OTHER SERVICES

    CorBorate

    )a'(,'@

    Small a'?

    me?,um

    e'terBr,&e&

    F,'a'c,al

    ,'&t,tut,o' tru&t&

    a'? )a'(

    FORE/

    Ser,ce&

    NRI Ser,ce&

    8unded

    &erices

    8unded

    &erices

    +learin# &u$

    Mem$ership

    RTG& su$

    mem$ership

    8und Transfer

    -TM Tieups

    +orporate &alary

    a/c

    Ta0 +ollection

    Trade 8inance -ccounts Deposits

    QRupee &ain# a/c

    QRupee +urrent a/c

    QRupee 8i0ed Deposits

    Q8orei#n +urrency

    Deposits

    Q-ccounts for Returnin#

    !ndians

    Non 8unded

    &erices

    Non funded

    serices

    Mutual funds Traelers2

    +he"ues

    -ccounts Deposits

    Remittances

    >alue added

    serices

    &pecialiAed

    serices

    &tock $rokers 8orei#n

    +urrency

    +ash

    ;ther serices like

    Priate )ankin#

    Portfolio !nestment

    &cheme

    home oans

    oans -#ainst &ecuritiesoans -#ainst Deposits

    Gold +redit +ard

    Payment

    &erices -ccess

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    To )ank

    Net&afe

    )illPay

    !nstaPay

    DirectPay

    >isa Money

    ;nline Donation

    Net )ankin#

    ;ne >iew

    !nsta-lert

    -TM

    Phone )ankin#

    *mail &tatements

    )ranch Network

    !nternet

    $ankin#

    !nternet

    $ankin#

    8orei#n

    +urrency

    Drafts

    8orei#n

    +urrency

    +he"ue

    Deposits

    8orei#n+urrency

    Remittances

    8ore0Plus

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    +ard

    STRATEGIES OF HDFC !ANK

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    There are drastically chan#es seen in the use of !nternet $ankin#1 in a year 3BB6 '34( and in the

    year 3BB '374(. This type of technolo#y #ies the freedom to retail customers. New and

    improed technolo#y results in the adanta#eous functionin# of the $ank smoothly and

    efficiently.

    ,D8+ )-N: is the ery consistent player in the new priate sector $anks. New priate sector

    $anks to withstand the competition from pu$lic sector $anks came up with innoatie products

    and superior serice.+ustomer se#ments 'retail wholesale( account for 4 of Net reenue

    '8L 3BBC( .,i#her retail reenues partly offset $y hi#her operatin# and credit costs. ,D8+ has

    tried to e"ually well position itself to #row $oth se#ments.

    ComBet,t,e Stre'@t+&

    The $ank attri$utes its #rowth and continuin# success to the followin# competitie stren#ths%

    a( HDFC )a'( ,& a lea?er amo'@ I'?,a' )a'(& ,' t+e u&e of tec+'olo@y

    &ince the $ank2s inception1 it has made su$stantial inestments in technolo#y platform and

    systems. )ank has $uilt multiple distri$ution channels1 includin# an electronically linked $ranch

    network1 automated telephone $ankin#1 !nternet $ankin# and $ankin# $y mo$ile phone1 to offer

    customers conenient access to our products. Technolo#y platform has drien the deelopment

    of innoatie products and reduced operatin# costs.

    $( HDFC )a'( ?el,er& +,@+ ual,ty &er,ce *,t+ &uBer,or eecut,o'

    )ank tries to delier efficient serice with rapid response time. )ank2s focus on personaliAed

    serice tries to draws customers to the products and increases e0istin# customer loyalty.

    c( HDFC offer a *,?e ra'@e of Bro?uct&

    @hether in retail or wholesale $ankin#1 the $ank tries to $e a Ionestop shopJ for the +ustomers2

    $ankin# needs. The wide ran#e of products creates multiple crosssellin# opportunities for $ank

    and improes customer retention rates.

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    d( HDFC cla,m& to +ae a' eBer,e'ce? ma'a@eme't team

    -ccordin# to ,D8+1 many of the mem$ers of senior mana#ement team who hae $een with the

    $ank since inception seem to hae su$stantial e0perience in multinational $ankin#.

    !u&,'e&& &trate@y

    ,D8+ )-N: mission is to $e Ia @orld +lass !ndian )ankJ1 $enchmarkin# themseles a#ainst

    international standards and $est practices in terms of product offerin#s1 technolo#y1 serice

    leels1 risk mana#ement and audit compliance. The o$jectie is to $uild sound customer

    franchises across distinct $usinesses so as to $e a preferred proider of $ankin# serices for

    tar#et retail and wholesale customer se#ments1 and to achiee a healthy #rowth in profita$ility1

    consistent with the )ankKs risk appetite. )ank is committed to do this while ensurin# the hi#hest

    leels of ethical standards1 professional inte#rity1 corporate #oernance and re#ulatory

    compliance. +ontinue to deelop new product and technolo#y is the main $usiness strate#y of

    the $ank. Maintain #ood relation with the customers is the main and prime o$jectie of the $ank.

    ,D8+ )-N: $usiness strate#y emphasiAes the followin#%

    Q!ncrease market share in !ndia2s e0pandin# $ankin# and financial serices industry $y

    followin# a disciplined #rowth strate#y focusin# on "uality and not on "uantity and

    delierin# hi#h "uality customer serice.

    Qeera#e our technolo#y platform and open scala$le systems to delier more products to more

    customers and to control operatin# costs.

    QMaintain current hi#h standards for asset "uality throu#h disciplined credit risk mana#ement.

    QDeelop innoatie products and serices that attract the tar#eted customers and address

    inefficiencies in the !ndian financial sector.

    Q+ontinue to deelop products and serices that reduce $ank2s cost of funds.

    Q8ocus on hi#h earnin#s #rowth with low olatility

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    OBBortu',t,e&

    Profit mar#ins will $e #ood.

    +ould e0tend to oerseas $roadly.

    New specialist applications.

    +ould seek $etter customer deals

    8asttrack career deelopment opportunities on an industrywide

    $asis.

    -n applied research centre to create opportunities for deelopin#

    techni"ues to proide alueadded serices.

    Growin# !ndian $ankin# sector

    People are $ecomin# more serice oriented

    #lo$al market opportunity

    T+reat&

    Qe#islation could impact.

    QGreat risk inoled

    Q>ery hi#h competition preailin# in the industry.

    Q>ulnera$le to reactie attack $y major competitors

    Qack of infrastructure in rural areas could constrain inestment.

    Q,i#h olume/low cost market is intensely competitie.

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    Mar(et,'@ &trate@,e&

    Distri$ution

    +hoice of channels for serices

    Modern technolo#y

    Maintain# pu$lic relationship

    !nternet serices

    -dertisin#

    &tron# marketin# position

    Personal $ankin# for the customers

    8ocus on Relationship $ankin#

    )ank tries to esta$lish a customer relationship mana#ement in almost eery $ranch.

    +ustomer centric technolo#ies

    Mar(et,'@ camBa,@'& lau'c+e? )y HDFC )a'(

    ,D8+ )ank has launched nei#h$orhood marketin# initiaties in tiertwo cities and towns to

    create awareness a$out its arious products and serices. These initiaties are especially tar#eted

    at those consumers who are not aware a$out the $ankKs arious alueadded serices such as

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    direct $ankin# facilities. These campai#ns demonstrated the adanta#es of net $ankin# and

    mo$ile $ankin#1 as these concepts are relatiely new to people liin# in smaller towns and cities.

    The $ank has also launched another initiatie called I)usiness :i )atenJ1 which is tar#eted at

    areas where the $ulk of the population comprises small $usinessmen. The $ank would #et

    e0perts to talk on a num$er of issues such as alueadd ta0 and sales ta0. -ccordin# to an article

    in ,indu $usiness line dated Noem$er 1 3BB1 these campai#ns proide $ank with information

    a$out customer preferences that can $e used for mass media communication1 makin# it more

    effectie. ,D8+ can measure the result of a campai#n throu#h the sales that they #enerate and

    the customers that are added. There is a clear return on inestment1 which from a functional point

    of iew #ies the team a stron#er oice. ,D8+ has also $een a$le to reduce ad spends $y a$out

    6B67 per cent and has also reduced the cost of ac"uisition. ,D8+ wants to create anenironment that is re"uired to support customer intelli#ence that leads to data$ase marketin#.

    ,D8+ $ank has inested in many cross sellin# actiities. ,D8+ strate#y has $een not only the

    ac"uisition of new customers $ut at creatin# product awareness1 enhancin# usa#e and also

    proidin# alueadded serices to customers to reward them for their faith and loyalty. ,D8+

    also sends personaliAed mailers a$out their arious products to the data $ase which they ac"uire.

    ,D8+ tries to sell itself as one stop financial super market.

    Cu&tomer& a'? Mar(et,'@9 +o* ,& ,t ?o'e for reta,l Bro?uct& of t+e )a'(

    The tar#et market for retail serices comprises upper and middleincome persons and hi#h net

    worth customers. ,D8+ also tar#et small $usinesses1 trusts and nonprofit corporations. The

    marketin# of products is done throu#h $ranches1 telemarketin# and a dedicated sales staff for

    niche market se#ments. ,D8+ also use thirdparty a#ents and direct sales associates to market

    certain products and to identify prospectie new customers. -dditionally1 $ank o$tains new

    customers throu#h joint marketin# efforts with our wholesale $ankin# department1 such as our

    +orporate &alary -ccount packa#e. The marketin# of auto loan and twowheeler loan products

    are done throu#h joint efforts with releant manufacturers and distri$utors.

    There are pro#rams that tar#et other particular se#ments of the retail market. 8or e0ample1 the

    priate and preferred $ankin# pro#rams proide customiAed financial plannin# to hi#h net worth

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    indiiduals in order to presere and enhance their wealth. Priate $ankin# customers receie a

    personal inestment adisor who seres as their sin#lepoint ,D8+ )ank contact1 and who

    compiles personaliAed portfolio trackin# products1 includin# mutual fund and e"uity trackin#

    statements. ,D8+ $ank priate $ankin# pro#ram also offers e"uity inestment adisory

    products. @hile not as sericeintensie as the priate $ankin# pro#ram1 preferred $ankin# offers

    similar serices to a sli#htly $roader tar#et se#ment. Top reenue#eneratin# customers of the

    preferred $ankin# pro#ram are channeled into $ank2s priate $ankin# pro#ram.

    RETAIL !ANKING AN ANAL0SIS

    RETAIL !ANKING

    Retail $ankin# is typical massmarket $ankin# where indiidual customers use local $ranches of

    lar#er commercial $anks. &erices offered include% sain#s and checkin# accounts1 mort#a#es1

    personal loans1 de$it cards1 credit cards1 and so forth. This is ery different from wholesale

    $ankin#.

    RETAIL !ANKING IN INDIA!ndia is poised to $ecome the worldKs fourth lar#est economy in the span of two decades.

    *conomic prosperity is proidin# many in this populous nation with real purchasin# power it

    simply is an opportunity that cannot $e oerlooked $y #lo$al $anks. Durin# the last decade1 !ndia

    has emer#ed as one of the $i##est and fastest #rowin# economies in the world. The stren#thenin#

    economy in !ndia has $een fueled $y the coner#ence of seeral key influences% li$eraliAation

    policies of the #oernment1 #rowth of key economic sectors1 deelopment of an *n#lish

    speakin#1 welleducated work force and the emer#ence of a middle class population.

    REASONS FOR THE CHANGE OVER FROM COR$ORATE !ANKING

    TO RETAIL !ANKING%

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    costs and achiee economies of scale and improe their $ottomline $y ro$ust #rowth in

    retail $usiness olume.

    Throu#h product innoations and competitie pricin# strate#ies )anks can foster $usiness

    relationship with customers to retain the e0istin# clients and attract new ones.

    !nnoatie products like asset securitiAation can open new istas in sustainin# optimal

    capital ade"uacy and asset lia$ility mana#ement for $anks.

    Retail )ankin# offers opportunities to $anks to cross sell other retail products like credit

    card1 insurance1 mutual fund products and demat facilities etc. to depositors and

    inestors.

    HDFC !ANK RETAIL $RODCTS $ERSONAL !ANKING

    ,D8+ $ank principal $ankin# actiities consist of retail $ankin#1 wholesale $ankin# and

    treasury operations. The retail $ankin# operations of the ,D8+ $ank hae $een discussed $elow.

    Reta,l !a'(,'@ Oer,e*

    ,D8+ $ank considers itself a onestop shop for the financial needs of upper and middleincome

    indiiduals. !t proide a comprehensie ran#e of financial products includin# deposit products1

    loans1 credit cards1 de$it cards1 thirdparty mutual funds and insurance products1 inestment

    adice1 $ill payment serices and other serices. !t offers hi#h "uality serice and #reater

    conenience $y leera#in# our technolo#y platforms and multiple distri$ution channels. ,D8+

    $ank #oal is to proide $ankin# and financial serices to our retail customers on an Ianytime1

    anywhere1 anyhowJ $asis. ,D8+ $ank market serices a##ressiely throu#h its $ranches and

    direct sales associates1 as well as throu#h the $ank2s relationships with automo$ile dealers and

    corporate clients. @hat the $ank does is to esta$lish a relationship with a retail customer and

    then e0pand it $y offerin# more products and e0pandin# their distri$ution channels so as to make

    it easier for the customer to do $usiness with $ank. )ank $eliees in this strate#y1 so that it can

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    lead to #eneral #rowth of the !ndian economy and the !ndian upper and middle classes1 can

    afford $ank2s si#nificant opportunities for #rowth.

    ,D8+ Hs plan is to continue to e0pand their $ranch and -TM network as well as their other

    distri$ution channels1 su$ject to receiin# re#ulatory approals.

    Reta,l Loa'& a'? Ot+er A&&et $ro?uct&

    ,D8+ )ank offers a wide ran#e of retail loans1 includin# loans for the purchase of

    automo$iles1 personal loans1 retail $usiness $ankin# loans1 loans for the purchase of

    commercial ehicles and construction e"uipment finance1 twowheeler loans1 credit cards

    and loans a#ainst securities. The retail loans were 7C.54 of $ank2s #ross loans as of

    Decem$er E61 3BB. -part from the $ranches of the $ank1 ,D8+ use their -TM screens

    and the !nternet to promote its loan products and they also employ additional sales

    methods dependin# on the type of products. ,D8+ $ank themseles performs credit

    analyses of the $orrowers and the alue of the collateral. The $ank also $uys mort#a#e

    and other asset$acked securities and inests in retail loan portfolios throu#h

    assi#nments. !n addition to takin# collateral in many cases1 ,D8+ $ank o$tains post

    dated checks coerin# all payments at the time a retail loan is made. !t is a criminal

    offense in !ndia to issue a $ad check. Thou#h throu#h my o$seration in $ank ! hae seen

    that $ank also sometimes o$tain irreoca$le instructions to de$it the customer2s accountdirectly for the makin# of payments. EMI calculator9 The $ank offers proper details on

    how it is done in fact the $ank makes sure that the customers are aware a$out its use and

    how is it releant. !t makes use of amortiAation ta$le for its calculation. The term and

    *M! has $een e0plained $elow.

    Euate? Mo't+ly I'&tallme't "EMI#

    -n e"uated monthly installment '*M!( is the fi0ed monthly payment made $y a $orrower

    to the lender each calendar month. The amount of the *M! depends upon the loan

    amount1 interest rate char#ed for the loan and the duration in which the loan is to $e

    repaid. The *M! is made up of two parts1 the principal amount and the interest on the

    principal amount diided across each month in the loan tenure. The *M! is always paid

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    up to the lender on a fi0ed date each month until the loan is paid off in full at the end of

    the tenure. The $enefit of an *M! for $orrowers is that they know precisely how much

    money they will need to pay toward their loan each month1 makin# the personal

    $ud#etin# process easier.

    Amort,-at,o' Ta)le& a'? W+y T+ey Are &eful

    Now1 one mi#ht assume that the *M! is applied in e"ual parts towards the principal and

    the interest eery month1 howeer this not the case. Durin# the initial years the interest

    component repaid is hi#her and durin# the latter years of repayment the principal

    component is hi#her. @hile a portion of eery payment is applied towards $oth the

    interest and the principal $alance of the loan1 the e0act amount applied to principal each

    time aries 'with the remainder #oin# to interest(. -n amortiAation schedule reeals the

    amount applied towards interest1 as well as the amount paid towards the principal

    $alance1 with each payment. !nitially1 a lar#e portion of each payment is deoted to

    interest. -s the loan matures1 lar#er portions #o towards payin# down the principal. !n

    addition to $reakin# down each payment into interest and principal portions1 an

    amortiAation schedule also reeals the remainin# principal $alance on each payment date.

    Loa' reBayme't calculator

    The followin# ta$le shows the alue and share of our retail loan products 'net of loans

    securitiAed out(%

    'Rs. crore(

    $art,cular& A& at Decem)er :5 7

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    +redit +ards 1B7E 5.4

    ;ther Retail oans 516 66.74

    Total Reta,l Loa'& ;4326 5

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    'dematerialiAed( form1 which ensures that they o$tain perfected and firstpriority security

    interests. The minimum mar#in for lendin# a#ainst shares is prescri$ed $y the R)!.

    T*o W+eeler Loa'&

    ,D8+ offer loans for financin# the purchase of scooters or motorcycles. The $ank markets this

    product in ways similar to their marketin# of auto loans.

    Reta,l !u&,'e&& !a'(,'@

    ,D8+ $ank address the $orrowin# needs of the community of small $usinessmen near the $ank$ranches $y offerin# facilities such as credit lines1 term loans for e0pansion or addition of

    facilities and discountin# of credit card receia$les. The $ank classifies these $usiness $ankin#

    loans as a retail product. &uch lendin# is typically secured with current assets as well as

    immoa$le property and fi0ed assets in some cases. The $ank also offer letters of credit1

    #uarantees and other $asic trade finance products and cash mana#ement serices to such

    $usinesses.

    Cre?,t Car?&

    ,D8+ $ank offer credit cards from the >!&- and Master+ard sta$le includin# #old1 siler1

    corporate1 platinum and titanium credit cards. -s per the information #ained from $ank1 the $ank

    had appro0imately 7 lacks cards outstandin# as of Decem$er E61 3BB as a#ainst E lacks as of

    March E61 3BB.

    Ot+er Reta,l Loa'&

    &uch loans primarily include oerdrafts a#ainst time deposits1 health care e"uipment financin#

    loans1 tractor loans1 loans a#ainst #old and ornaments and small loans to farmers. +urrently other

    loans also include home loans dis$ursed $y the erstwhile +enturion )ank of Punja$ td.

    Reta,l DeBo&,t $ro?uct&

    Retail deposits proide the $ank with a low cost1 sta$le fundin# $ase and hae $een a key focus

    area for ,D8+ since commencin# operations. Retail deposits represented 5F4 of $ank2s total

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    deposits as of Decem$er E61 3BBC. The followin# chart shows the alue of our retail deposits $y

    our arious deposit products as of the same date%

    TyBe of DeBo&,t Value "R&. crore# of Total

    &ain#s EB1F56 E6.5F4

    +urrent 61BB6 6.64

    8i0ed deposits 731EF3 7E.C3

    Total 465:; 5

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    time deposit account to a sain#s account1 as well as a time deposit account with an automatic

    oerdraft facility. *)rokin# accounts are offered as current accounts to customers of stock

    $rokers where all transactions are routed electronically $etween the $roker and $eneficiaries.

    Ot+er Reta,l Ser,ce& a'? $ro?uct&

    De),t Car?&

    The de$it cards may $e used with more than BB1BBB merchant pointofsale machines and oerEB1BBB -TMs in !ndia and more than 3.CB crore merchant outlets and 6B lacs -TMs worldwide.

    ,D8+ was the first in !ndia to issue international >isa *lectron de$it cards on a nationwide $asis

    and currently issue $oth >isa and Master+ard de$it cards.

    I'?,,?ual DeBo&,tary Accou't&

    )ank proides depositary accounts to indiidual retail customers for holdin# de$t and e"uity

    instruments. &ecurities traded on the !ndian e0chan#es are #enerally not held throu#h a $roker2s

    account or in street name. !nstead1 an indiidual will hae his own account with a depositary

    participant for the particular e0chan#e. Depositary participants1 includin# us1 proide serices

    throu#h the major depositaries esta$lished $y the two major stock e0chan#es. Depositary

    participants record ownership details and effectuate transfers in $ookentry form on $ehalf of the

    $uyers and sellers of securities. @e proide a complete packa#e of serices1 includin# account

    openin#1 re#istration of transfers and other transactions and information reportin#.

    Mutual Fu'? Sale&

    ,D8+ offer retail customers units in most of the lar#e and reputa$le mutual funds in !ndia. 8or

    this $ank earns frontend commissions for new sales and in some cases additional fees in

    su$se"uent years. )ank distri$utes mutual fund products primarily throu#h $ranches and priate

    $ankin# adisors.

    I'&ura'ce

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    ,D8+ has arran#ements with ,D8+ &tandard ife !nsurance +ompany and )ajaj -llianA

    General !nsurance +ompany to distri$ute their life insurance products and #eneral insurance

    products to the customers. 8or this also $ank earns upfront commissions on new premiums

    collected as well as some trailin# income in su$se"uent years while the policy is still in force.

    $rec,ou& Metal&

    ,D8+ $ank also import #old $ars for sale to retail customers throu#h $ranch network.

    I'e&tme't A?,ce

    )ank offer customers a $road ran#e of inestment adice includin# adice re#ardin# the

    purchase of !ndian de$t1 e"uity shares1 and mutual funds. )ank proides priate $ankin#

    customers with a personal inestment adisor who can consult with them on their indiidual

    inestment needs.

    !,ll $ayme't Ser,ce&

    )esides $ank also offer customers utility $ill payment serices for leadin# utility companies

    includin# electricity1 telephone1 mo$ile telephone and !nternet serice proiders. +ustomers can

    also reiew and access their $ill details throu#h direct $ankin# channels. This serice is alua$le

    to customers $ecause utility $ills must otherwise $e paid in person in !ndia. These serices -R*

    offered to customers throu#h multiple distri$ution channels-TMs1 telephone $ankin#1 !nternet

    $ankin# and mo$ile telephone $ankin#.

    CorBorate Salary Accou't&

    ,D8+ offer +orporate &alary -ccounts1 which allow employers to make salary payments to a

    #roup of employees with a sin#le transfer. )ank then transfer the funds into the employees2

    indiidual accounts1 and offer them preferred serices1 such as preferential loan rates1 and in

    some cases lower minimum $alance re"uirements.

    No'9Re&,?e't I'?,a' Ser,ce&

    Nonresident !ndians are an important tar#et market se#ment for !ndian $ankin# industry #ien

    their relatie affluence and stron# ties with family mem$ers in !ndia.

    Reta,l Fore,@' Ec+a'@e

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    KKNotice DepositKK means Term Deposit for a specific period $ut withdraw a$le on

    #iin# at least one complete $ankin# dayKs notice

    S+urrent -ccountS means a form of Demand Deposit wherefrom withdrawals are

    allowed any num$er of times dependin# upon the $alance in the account or up to aparticular a#reed amount and will also include other deposit accounts which are

    neither &ain#s Deposit nor Term Deposit

    Accou't OBe','@ > OBerat,o' of DeBo&,t Accou't

    )efore openin# any Deposit -ccount1 the $ank will carry out due dili#ence as re"uired under

    S:now Lour +ustomerS ':L+( #uidelines issued $y R)! and or such other norms or procedures

    adopted $y the $ank. !f the decision to open an account of a prospectie depositor re"uires

    clearance at a hi#her leel1 reasons for any delay in openin# of the account will $e informed to

    him and the final decision of the $ank will $e coneyed at the earliest to him.

    The account openin# forms and other material would $e proided to the prospectie depositor $y

    the $ank. The same will contain details of information to $e furnished and documents to $e

    su$mitted for erification and / or for record. !t is e0pected of the $ank official to e0plain the

    procedural formalities and proide necessary clarifications sou#ht $y the prospectie depositor

    when he approaches the $ank for openin# a Deposit -ccount.

    8or deposit products like &ain#s )ank -ccount and +urrent Deposit -ccount1 the $ank will

    normally stipulate certain minimum/aera#e $alances to $e maintained as a part of the terms and

    conditions #oernin# operation of such accounts. 8ailure to maintain stipulated minimum/

    aera#e $alance in the account will attract ley of char#es as specified $y the $ank. 8or &ain#s

    )ank -ccount1 the $ank may also restrict the num$er of transactions1 cash withdrawals1 etc.1 for

    a #ien period. &imilarly1 the $ank may specify char#es for issue of che"ue $ooks1 additional

    statement of accounts1 duplicate pass $ook1 folio char#es1 etc. -ll such details1 re#ardin# terms

    and conditions for operation of the accounts and schedule of char#es for arious serices

    proided will $e communicated to the prospectie depositor while openin# the account.

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    ;peration of =oint -ccount% The =oint -ccount opened $y more than one indiidual can $e

    operated $y sin#le indiidual or $y more than one indiidual jointly. The mandate for operatin#

    the account can $e modified with the consent of all account holders. The &ain#s )ank -ccount

    opened $y minor jointly with natural #uardian / #uardian can $e operated $y natural #uardian

    only.

    The joint account holders choose any of the followin# options for the disposal of $alance in the

    a$oe accounts%

    *ither or &urior % !f the account is held $y two indiiduals say1 - )1 the final $alance

    alon# with interest1 if applica$le1 will $e paid to surior on death of any one of the

    account holders.

    -nyone or &urior/s % !f the account is held $y more than two indiiduals say1 -1 ) and

    +1 the final $alance alon# with interest1 if applica$le1 will $e paid to the surior on death

    of any two account holders.

    The a$oe mandates will $e applica$le to or $ecome operational only on or after the date of

    maturity of term deposits. This mandate can $e modified $y the consent of all the account

    holders.

    -t the re"uest of the depositor1 the $ank will re#ister the mandate / power of attorney #ien $y

    him authoriAin# another person to operate the account on his $ehalf.

    The term deposit account holders at the time of placin# their deposits can #ie instructions with

    re#ard to closure of deposit account or renewal of deposit for further period on the date of

    maturity

    - statement of account will $e proided $y the $ank to &ain#s )ank as well as +urrent Deposit

    -ccount ,olders periodically as per terms and conditions of openin# of the account. Pass$ook

    facility is aaila$le to all sain#s account holders free of cost.

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    Nom,'at,o' Fac,l,ty

    Nomination 8acility% )ank offers nomination facility in deposit accounts1 safe deposit lockers1

    articles in safe custody etc. Nomination facility is aaila$le on all deposit accounts opened $y the

    indiiduals. Nomination is also aaila$le to a sole proprietary concern account. Nomination can

    $e made in faor of one indiidual only. Nomination so made can $e cancelled or chan#ed $y the

    account holder/s any time. @hile makin# nomination1 cancellation or chan#e thereof1 it is

    re"uired to $e witnessed $y a third party. Nomination can $e modified $y the consent of account

    holder/s. Nomination can $e made in faor of a minor also su$ject to other major indiidual

    $ein# named appointee's( durin# the minority period. The $ank recommends that all depositors

    aail nomination facility. The nominee1 in the eent of death of the depositor/s1 would receie

    the $alance outstandin# in the account as a trustee of le#al heirs.

    I'tere&t $ayme't&

    M,'or& Accou't&

    The minor can open a sain#s $ank account and the same can $e operated $y the natural

    #uardian or $y the minor himself / herself1 if he/she is a$oe the a#e of 63 years. The account

    can also $e opened jointly. ;n attainin# majority1 the erstwhile minor should confirm the $alance

    in his/her account and if the account is operated $y the natural #uardian / #uardian1 fresh

    specimen si#nature of erstwhile minor duly erified $y the natural #uardian would $e o$tained

    and kept on record for all operational purposes.

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    COM$ETITIVE ANAL0SIS

    ICICI )a'(

    !+!+! )ank is !ndiaKs secondlar#est $ank with total assets of Rs. E15E.BB $illion '

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    the country1 with profits runnin# into . $illion in the "uarter ended =une 3BBC. The $ank also

    has a presence in around 6 countries across the #lo$e. They offer a wide #amut of retail

    products to its retail customers and as well as other $ankin# products related to the corporate

    se#ment.

    M,le&to'e&

    !n 6CCC1 !+!+! $ecome the first !ndian company and the first $ank or financial institution

    from non=apan -sia to $e listed on the NL&*.

    Mer#er of !+!+! )ank with )ank of Madura imited in fiscal 3BB6 and 3BB3.

    !n ;cto$er 3BB61 !+!+! Personal 8inancial &erices and !+!+! +apital &erices wholly

    owned $y !+!+! imited were allowed to $e mer#ed with !+!+! )ank1 which was

    formally approed $y the R)! in -pril 3BB3.

    :.>. :amath is the +hairman of the !+!+! #roup. +handa D. :ochhar1 the Mana#in#

    Director +*; of !+!+! )ank was recently named in 8or$es list of the @orld2s 6BB

    Most Powerful @omen and ranked in the top 3B of the list compiled $y 8or$es1 sharin#

    the honor with &onia Gandhi1 +on#ress President who ranked 6Eth.

    ICICI )a'( reta,l Bro?uct&

    Accou't& a'? ?eBo&,t&

    Sa,'@& accou't

    !+!+! $ank sain#s account offers the customers followin# features%

    De$itcum-TM +ard

    Money Multiplier 8acility

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    !nternet )ankin#

    +ustomer +are

    Mo$ile )ankin#

    &tandin# !nstructions

    Nomination facility

    DD +all and +ollect

    De),t9cum9ATM Car? 9 @ith !+!+! )ank Sa,'@& Accou'tthe customers will #et a de$it card

    that one can use to withdraw cash from any -TM. +ustomers may also use their de$it card to

    directly make purchases throu#h a >isa/Master+ard P;& 'Point of &ale( machine aaila$le at

    most stores1 accordin# to the $ank this will help customers access their money from anywhere.

    The !+!+! )ank !nternational de$it card is a de$itcum-TM card proidin# customers with the

    conenience of acceptance at merchant esta$lishments and cash withdrawals at -TMs. !f the

    customers want to withdraw cash from their !+!+! )ank &ain#s account1 they can walk into any

    $ankKs -TM and use their !+!+! )ank -TMcumDe$it card for free. The a$oe $enefit is

    aaila$le free of cost for the first 7 transaction per month upto Rs 6B1BBB per transaction.

    Mo'ey Mult,Bl,er Fac,l,ty9The Money Multiplier feature #ies customer the li"uidity of a

    &ain#s -ccount coupled with hi#h earnin#s of a 8i0ed Deposit. This is achieed $y creatin# a

    8i0ed Deposit linked to customers &ain#s -ccount proidin# them the followin# facilities.

    Ma,mum retur'& -ccordin# to the $ank the customer2s money is neer idle. +reation

    of a linked 8D ensures hi#her rate of interest on their &ain#s )ank Deposits. ;ne can

    issue instructions throu#h any channel such as the !+!+! )ank )ranch1 !+!+! )ank Phone

    )ankin# and !+!+! )ankKs !nternet )ankin# for creation of 8i0ed Deposit's( from the

    surplus funds in your &ain#s )ank -ccount 'su$ject to a minimum of Rs. 6B1BBB(. The

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    8i0ed Deposits will $e created in multiples of Rs. 71BBB for tenure of one year or more as

    instructed $y the customer.

    Ma,mum L,u,?,ty The customers can withdraw the funds from their sain#s

    account throu#h any channel such as the !+!+! )ank -TM1 !+!+! )ank !nternet )ankin#

    or $y issuin# a che"ue etc. -ll linked 8i0ed Deposits will $e ena$led for automatic

    Reerse &weep in multiples of Rs. 7BBB on a ast!n8irst;ut '!8;( $asis when the

    $alance in the &ain#s -ccount falls $elow Rs.6B1 BBB. The amount reerse swept will

    earn interest rates at the applica$le rate for the period that the deposit was held with the

    )ank. The remainin# amount will continue to earn hi#her interest at the ori#inal rate

    applica$le to the fi0ed deposit.

    Auto Re'e*al

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    - person le#ally empowered to operate a minorKs account can file a nomination on $ehalf

    of the minor.

    -pplicants can make nomination $y fillin# up the 8orm prescri$ed under the )ankin#

    +ompanies 'Nomination( Rules 6C7

    The nomination details can $e chan#ed durin# the su$sistence of the account relationship

    $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules

    6C7.

    DD Call a'? Collect accordin# to the $ank the customers need to wait in $ank to collect DD

    they can do so on the way to the $ranch1 $y just callin# +ustomer +are and proidin# them

    details of the DD to $e prepared and collect it ready and si#ned at the $ranch.

    Salary accou't&

    !+!+! )ank &alary -ccount is a $enefitrich payroll account for *mployers and *mployees. -s

    an or#aniAation1 one can opt for &alary -ccounts to ena$le easy dis$ursements of salaries and to

    hae access to other $enefits too. -ccordin# to the $ank with !+!+! )ank &alary -ccounts

    employees will enjoy the conenience of hain# the lar#est network of -TMs1 free 3 hour

    phone $ankin# and free internet $ankin#. @hat the customers would re"uire to do is to send

    !+!+! )ank an adice 'in form of a che"ue/de$it instruction1 ecs1 etc( for the total salary amount

    alon# with the salary details of the desi#nated employees in a soft and hard copy format and

    $ank will credit the respectie employeesK accounts as per the company2s statement of adice.

    !+!+! )ank &alary -ccounts has the $enefits of reduce paper work and saes remittance costsand also the employees receie instant credit of salaries. )esides all of the a$oe1 employees will

    automatically $ecome !+!+! )ank account holders with special $enefits and priile#es of

    $ankin#1 !nestment adisory and much more. !+!+! )ank also has a special offerin#% Defense

    )ankin# &erices desi#ned e0clusiely for the armed forces.

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    F,e? ?eBo&,t&

    The !+!+! $ank fi0ed deposits offer followin# adanta#es%

    @ide ran#e of tenures.

    +hoice of inestment plans.

    Partial withdrawal permitted.

    &afe custody of fi0ed deposit receipts.

    -uto renewal possi$le.

    oan facility aaila$le.

    Feature&

    The customers can deposit any amount of money in 8i0ed Deposit for as lon# as they

    wish $etween 67 days to 6B years. -ll fi0ed deposits come with a set choice of

    inestment plans. 8i0ed Rate Deposit accounts also proide 8i0ed oans. Reinestment

    8i0ed Deposit rates do not chan#e $ut works like a Recurrin# De$it -ccount transaction.

    !n other words1 Reinestment Plans are compounded oer traditional deposits and hence

    are more lucratie oer different time periods. ;ther features include%

    M,',mum !ala'ce

    +ustomers can aail of !+!+! )ank 8i0ed Deposits for a minimum deposit of Rs 6B1BBB.

    Nom,'at,o'

    Nomination facility aaila$le for $ank deposits.

    There can $e only one Nominee for a deposit account whether held sin#ly or jointly.

    - person le#ally empowered to operate a minorKs account can file a nomination on $ehalf

    of the minor.

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    -pplicants can make nomination $y fillin# up the 8orm prescri$ed under the )ankin#

    +ompanies 'Nomination( Rules 6C7.

    The nomination details can $e chan#ed durin# the su$sistence of the account relationship

    $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules

    6C7.

    +hoice of two inestment plans%

    Tra?,t,o'al

    !nterest paya$le monthly or "uarterly as per your conenience

    Maturity period ran#es from 67 days to 6B years

    Re,'e&tme't

    !nterest is compounded "uarterly and reinested with principal amount

    Maturity period ran#es from 5 months to 6B years

    !e'ef,t&

    8i0ed Deposits at !+!+! )ank comes with nomination facility. The $ank also offers online access

    to 8i0ed Deposits throu#h their !nternet )ankin# channel. !nternet )ankin# at !+!+! )ank allows

    customers to connect to their +redit +ard1 oan and their 8i0ed Deposit with their sain#s

    account. !n reinestment deposits1 the interest is compounded "uarterly and reinested with the

    principal. Traditional term deposits proide ta0 shelter and shield you from factors affectin#

    fi0ed deposits in !ndia oer lon#er periods of fi0ed time.

    -ll the facilities aaila$le with !+!+! $ank can $e listed as follows.

    C+a''el&

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    !+!+! )ank has the followin# channels throu#h which it offers its products and serices to its

    customers.

    )ranches

    -TMs

    !nternet )ankin#

    Mo$ile )ankin#

    Phone )ankin#

    Products and serices

    !+!+! )ank offers a host of products and serices to its clients1 which include Deposits1 oans1

    +ards1 !nestments1 !nsurance1 Demat1 NR! &erices and ;nline &erices etc.

    DeBo&,t&

    8ollowin# deposits are offered%

    &ain#s -ccount

    -danta#e Deposit

    &pecial &ain#s -ccount

    ife Plus &enior +itiAens &ain#s -ccount

    8i0ed Deposits

    &ecurity Deposits

    Recurrin# Deposits

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    Ta0&aer 8i0ed Deposit

    Loun# &tars &ain#s -ccount

    +hild *ducation Plan

    )ankU+ampus

    &alary -ccount

    -danta#e @oman &ain#s -ccount

    **8+ -ccount

    Resident 8orei#n +urrency 'Domestic( -ccount

    Priile#e )ankin#

    No 8rills -ccount

    Rural &ain#s -ccount

    PeopleKs &ain#s -ccount

    &elf ,elp Group -ccounts

    ;utward Remittance

    8reedom &ain#s -ccount

    8amily )ankin#

    Loa'&

    !+!+! )ank offers followin# loan facilities%

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    ,ome oans

    oan -#ainst Property

    Personal oans

    +ar oans

    Two @heeler oans

    +ommercial >ehicle oans

    oans -#ainst &ecurities

    oan -#ainst Gold ;rnaments

    Preapproed oans

    Car?&

    !+!+! )ank is !ndiaKs lar#est issuer of credit cards. !t also offers other types of cards. The arious

    cards offered $y !+!+! $ank are as $elow%

    +onsumer +ards

    +redit +ards

    Trael +ards

    De$it +ards

    +ommercial +ards

    +orporate +ards

    Prepaid +ards

    Purchase +ards

    Distri$ution +ards

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    +orporate &alary -ccount

    @omenKs &ain#s -ccount

    Demat -ccount

    &enior +itiAenKs -ccount

    Defence salary -ccount

    Trust/NG; &ain#s -ccount

    R8+'D( -ccount

    -AAadi No 8rills

    Pension &ain#s -ccount

    DeBo&,t&

    8i0ed Deposits

    Recurrin# Deposits

    *ncash 3

    Ta0 &aer 8i0ed Deposit

    Loa'&

    ,ome oan

    +ar oan

    Personal oan

    oan -#ainst &hares

    oan -#ainst Property

    oan -#ainst &ecurity

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    *&tatement

    Cre?,t

    ar#e +orporate

    @orkin# +apital 8inance

    Term oans

    Trade &erices

    &tructured 8inance

    &upply +hain Mana#ement

    ;erseas Transactions

    -#ri )usiness

    :isan Power

    Powertrac

    +ommodity Power

    +ontract 8armin#

    -rthia Power

    &M* &tandard

    &M* 8ast Track

    Microfinance

    $r,or,ty )a'(,'@

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    8ollowin# serices are offered under this cate#ory%

    Accou't&

    Resident NR!

    DeBo&,t&

    8i0ed Deposits

    Recurrin# Deposits

    *ncash 3

    Loa'&

    ,ome oan

    Personal oan

    oan -#ainst Property

    oan -#ainst &ecurity

    +ar loans

    +onsumer Power

    &tudy Power

    Car?&

    Priority De$it +ard

    +redit +ards

    Platinum +redit +ard

    Gold Plus +redit +ard65

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    Gold +redit +ard

    &iler +redit +ard

    &ecured +redit +ard

    e&hop +ard

    Trael +urrency +ard

    Remittance +ard

    Gift +ard

    Ot+er Ser,ce&

    o Mo$ile Refill

    o ocker

    o ;nline &hoppin#

    72 +our )a'(,'@ &er,ce&

    8ollowin# serices are offered under 3 0 F )ankin#%

    I'ter'et !a'(,'@

    Mo),le !a'(,'@

    &ain#s -ccount

    NR! -ccount

    +urrent -ccount

    $+o'e !a'(,'@

    V,&a Mo'ey Tra'&fer

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    $o*er Tra'&fer

    ATM

    KOTAK MAHINDRA !ANK

    :otak Mahindra is amon# the leadin# financial or#aniAation of !ndia1 with a ran#e of

    financial serices that caters to all customersK day to day re"uirements. Their products

    spans from commercial $ankin#1 to stock $rokin#1 to mutual funds1 to life insurance1 to

    inestment $ankin# dierse needs of indiiduals and corporate are catered to. The :otak

    #roup has a net worth of more than Rs. 51FCC crore with the $ranches1 franchisees1representatie offices and satellite offices spread across cities and towns in !ndia. They

    also hae #lo$al offices in New Lork1 ondon1 &an 8rancisco1 Du$ai1 Mauritius and

    &in#apore. The :otak Group offers their serices to appro0imately 5. million customers.

    The :otak Mahindra Group #ot incepted in 6C7 in the form of :otak +apital

    Mana#ement 8inance imited1 $ein# promoted $y Ser,ce&

    6. )ank

    3. +redit +ards

    E. ife !nsurance

    . Mutual 8unds

    7. +ar 8inance

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    5. &ecurities

    F. !nstitutional *"uities

    . !nestment )ankin#

    C. !nternational )usiness

    6B. :otak Priate *"uity

    66. :otak Realty 8und

    63. @ealth Mana#ement

    A)out Kota( Ma+,'?ra !a'(

    The fla#ship company of :otak Mahindra Group1 :otak Mahindra 8inance td was esta$lished

    in 6C7. The same #ot conerted into a $ank :otak Mahindra )ank td in March 3BBE. :otak

    Mahindra $ank has presence in commercial ehicles1 retail finance1 corporate $ankin#1 treasury

    and housin# finance.

    Ser,ce& of Kota( Ma+,'?ra !a'(

    DeBo&,t Accou't&

    &ain#s account

    +urrent -ccount

    Term Deposits

    Loa'&

    Personal oans

    ,ome oans

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    oan -#ainst Property

    I'e&tme't Ser,ce&

    Demat

    Mutual 8und

    !nsurance

    Gold

    Co'e',e'ce !a'(,'@ Net )ankin#

    Mo$ile )ankin#

    Phone )ankin#

    -TM Network

    $N%A! NATIONAL !ANK

    The Punja$ National )ank or PN) is one of the well known commercial and $ankin#

    institutions in !ndia. !t is the second lar#est #oernment owned and re#ulated commercial

    $ank in the country and offers specialiAed solutions and financial serices in a num$er of

    sectors. -round EF million customers are sered $y the $ank on an aera#e $asis. The

    customiAed facilities and serices make it a trusted name in the domain of $ankin#.

    Gro*t+ of $u'Ja) Nat,o'al !a'(

    Punja$ National )ank was re#istered under the !ndian +ompanies -ct on 6C May in the year

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    6C and its first office was set up at -narkali )aAaar in ahore. &ince then1 the $ank has

    $ecome a #reat name in the field of $ankin# and is ery much preferred $y the customers for the

    wide ran#e of its serices. Today1 the $ank has around 1CB $ranches in around F5 cities. Due

    to its facilities and serices of hi#h standards1 Punja$ National )ank has also $een the recipient

    of a num$er of presti#ious awards. !t has $een adjusted as the 3th $i##est $ank across the

    #lo$e accordin# to a recent surey made $y )ankers -lmanac in ondon. The *conomic Times

    has also listed the $ank as Eth amon# the premier 7BB companies and the Cth amon# the most

    trusted $rands in !ndia. The total asset alue of the $ank amounts to around

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    Trade financial serices

    !nternational $ankin# serices

    PN) also has commercial relationship with more than 3BB presti#ious international $anks across

    the #lo$e. !t has the proisions of Rupee Drawin# -rran#ements with around 67 e0chan#e

    companies in the

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    Mutual fu'?& of $u'Ja) Nat,o'al !a'(

    The mutual funds of Punja$ National )ank are coered under the Principal PN) -sset

    Mana#ement +ompany. &ome of the well known schemes of mutual funds are%

    Principal Growth &cheme

    Principal $alanced 8und

    Principal !ncome 8und

    Principal #oernment &ecurities 8und

    Principal !ncome 8und &hort Term De$t

    Principal +ash mana#ement 8und

    Principal !nde0 8und

    Ta$le showin# analysis on different parameters%

    S.NO $ARAMETE

    RS

    HDFC

    !ANK

    ICICI

    !ANK

    A/IS !ANK KOTAK

    MAHINDR

    A

    !ANK

    $N%A!

    AND

    NATIONA

    L

    !ANK

    6. )R-N+,*& 663

    '!ND!-(

    66'D*,!

    (

    3BBC

    '!ND!-(

    6BC

    ' Delhi(

    6FBBW

    '!ND!-(

    F'D*,!(

    37

    '!ND!-(

    55'D*,!(

    E7B'!ND!

    -(

    36E'D*,

    !(

    3. -TMs 736C

    '!ND!-(

    B77

    '!ND!-(

    66Fappro0.

    '!ND!-(

    E. +,*?

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    . *-&L

    !NT*RN*T

    )-N:!NG

    L*& L*& L*& L*& L*&

    7. ->*R-G*

    ?!NG&

    -++;-!NG&

    R*G

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    &!NG&

    -++;!NG&

    -++;

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    8i0edDeposit

    -9!& )-N: 8!9*D

    D*P;&!T&

    3.7B4 R&. 6B1BBB ?

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    P&< $anks which are a dominatin# force in the !ndian $ankin# system hae lacked a

    proactie ,R enironment. ,oweer1 much has chan#ed with the openin# of other

    sectors and increased competition from newer $anks in the system. &o Punja$ national

    $ank has under#one a drastic chan#e with in time and has $een #iin# a serious

    competition to ,D8+ $ank. There is a realiAation that skill deelopment is e0tremely

    important for staff retention as well as the "uality of manpower1 and all $anks whether

    ,D8+ or any other $ank had in place a system of continuous professional learnin#. -

    few $anks like :otak Mahindra are time and a#ain in the process of reampin# their

    trainin# processes and their emphasis is $ein# laid on hard as well as soft skills. )anks

    are keen to tie up with e0ternal trainin# a#encies for inhouse trainin#. Now if one look

    at the retail products offered at different $anks then the sain#s account facility offered

    at Punja$ national $ank finds more takers in the middle leel earnin# #roup of people

    like for e0ample the total freedom sain#s account of PN) where there is no need to

    maintain an aera#e "uarterly $alance and een the fees that is deducted for other

    accounts where the customers are not a$le to maintain aera#e $alance is much less than

    ,D8+1 !+!+!1 -9!& and :;T-: M-,!NDR- $ank. :otak Mahindra $ank seems to

    tar#et customers of hi#her lea#ue as they don2t hae many $ranches in Delhi as

    compared to ,D8+1 !+!+!1 and -9!& $ank. They hae their own e0clusie class of

    customers and they market their products like that only. The current and sain#s accountof :otak Mahindra $ank is marketed with terms likeJ the powerJ to hae an e0clusie

    $ankin# serice. Now ,D8+ $ank has a ery special way of treatin# its customers $y

    #iin# them the conenience of imperia customer pro#ramme1 classic customer

    pro#ramme and preferred customer pro#ramme. This helps the $anks in attractin# more

    and more customers for the retail products. This is referred as priority $ankin#. The plus

    current account of ,D8+ $ank is preferred more $y the customers the minimum $alance

    re"uired to $e paid is R&. 61 BB1BBB and the interest paid are nil. Punja$ national $ank

    actually has $een a$le to deelop a more trustworthy relation with the customers since

    it2s a pu$lic $ank and does not char#e much for not maintainin# -?). ,D8+ $ank has

    $een a leader clearly amon# the priate $anks and has its own stron# and loyal customer

    $ase !+!+! $ank has $een #iin# a close competition to ,D8+ $ank as told $y the

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    customers. -fter the customers were contacted !a'( FD emer@e& out to )e t+e mo&t

    Breferre?option for the clients to inest in the market after real estate. This is also

    dependant on arious reasons which are #ien as under%

    o *asy loans aaila$le a#ainst the )ank 8i0ed Deposits.

    o +lients can withdraw their money at almost any time #iin# them the option of

    maintainin# i"uidity.

    o @ith all this )ank 8D also proides a decent return concerned the minimum of

    the risk in any of the aaila$le inestment instruments.

    o @e hae seen a$oe in the analysis of nationaliAed s. priate $anks that

    nationaliAed $anks are the more preferred ones1 this also adds wei#ht to clients

    preferrin# )ank 8Ds due to trust $uild durin# all these years.

    T+e' 'et Breferre? oBt,o' for t+e cl,e't& ,& ',t l,'( Bla'I'&ura'ce. -nother thin# that

    was noted were that majority of clients preferred the short term fi0ed deposits as their faorite

    option. Most of the clients use the ideal money which they hae to meet the uncertainty or short

    term re"uirement. Now if we talk a$out insurances the preference of the people who had inested

    in the insurance sector1 it is ery clear that !+ is the leadin# company in this field1 $ecause of

    many factors such as%.

    !+ is leadin# in this field mainly1 $ecause it is the first moer in the insurance sector and

    there$y had captured most of the market.

    !+ had a ery #ood network of a#ents1 who can $e seen as the $ack $one of the

    company.

    !+ had proided $etter serice in the past which had made trust in the mind of the

    people and for that reason they feel more comforta$le.

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    ,D8+ and !+!+! are the second in this field mainly $ecause they had opened their

    $ranches recently $ut hae made pro#ress in capturin# a si#nificant share of the market

    and in the future the ratio is decrease1 $ecause there are many opportunity to cash in $y

    $oth the company .

    The features that distin#uish ,D8+ $ank from other $anks1 accordin# to the customers are%

    6. The customers feel that serices across different $ranches of the ,D8+ $ank differs since they

    hae different $ranches for arious departments for e0ample Dwarka sector 33 which deals with

    isa serices $ecause of this the customer hae an adanta#e of conenience $ankin#

    3. +ustomers hain# lon# relationship with $ank rely a lot on the inestment serices and

    adices offered $y the $ank since $ank throu#h one or the other way try to #ie some $enefits to

    such customers1 the $ank named them as Iclassic customersJ.

    E. +ustomers call ,D8+ $ank as friendly and relia$le $ank $ecause of its +RM serices

    . ,D8+ $ank is also re#arded as a leader in deployin# technolo#y in its serices which makes it

    different from other $anks.

    7. ,D8+ $ank has $ecome relatiely lar#e especially $y the irtue of introducin# arious

    schemes for the $enefits of the customer.

    5. ,D8+ $ank has created a $rand e"uity that reflects trust and inte#rity.

    F. ,D8+ $ank has also tar#eted kids $y openin# accounts for them and $y introducin# kid2s

    adanta#e plan under mutual funds. Due to these efforts of ,D8+ $ank lots of kids hae $ecome

    loyal customers of ,D8+ already.

    . ,D8+ $ank has positioned itself more than just $ank. !t is already perceied as

    Icomprehensie financial supermarketJ. -ccordin# to the customers they hae created a irtual

    market place on the net.

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    C. ,D8+ $ank -TM serices hae $een considered remarka$le $y the customers. The $ank tries

    to handles the complaints it receies re#ardin# -TMs and D*)!T card as efficiently and

    effectiely as possi$le. This is $ecause one will find ma0imum takers of ,D8+ $ank2s -TM

    cards.

    6B. !n a nutshell what differentiates ,D8+ $ank is Ithe a$ility to add alueJ1 the I#lo$al ima#eJ

    and the personality of the $ank i.e. $ein# dynamic1 innoatie and i$rant .

    FINDINGS9

    Sale& Staff ?,ffer ,' t+e,r ,'format,o' a'? TeleB+o'e Call,'@ )y t+e HDFC )a'( ICICI

    )a'( a'? ICICI Bru?e't,al a'? HDFC &ta'?ar? l,fe A?,&or& are ?,&tur),'@ t+e cl,e't&9

    There is e0cess callin# $y the employee of the ,D8+ and !+!+! $anks and $y the -disors of

    insurance1 and this is one of the reasons why they are not interested in the $ank sometimes1 and

    the other reason is that most of the time the sales staff does not #ie what they promise1 their

    information #enerally differs from the $ankers in the $ank this create a $ad impression a$out the

    company.

    I' t+e )a'(,'@ &ector $u'Ja) 'at,o'al )a'( ,& t+e )a'( ma'y cu&tomer& Brefer 9

    PN) is the most preferred $ank $ecause of its $rand e"uity and also $ecause it has an old and

    loyal customer which has proed to $e a #reat adanta#e.. There are seeral thin#s which faor

    them includin#%

    The company2s ima#e in the mind of the people

    The company2s successful track record in proidin# life lon# serices to its customers79

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    - ery #ood a#ent $ase

    *0cellent relationship with clients

    A lar@e $art of t+e Mar(et yet to )e coere? )y Mutual Fu'?&9

    ar#e parts of the people do not know a$out the mutual funds inestment and insurance and

    other retail products schemes $ut they hae the power of Money. These clients should $e cash in

    $y the ,D8+ $ank.

    SERVICE MARKETING ANAL0TICAL STD0 ON THE

    !ASIS OF HDFC !ANK

    Ser=ual mo?el of mar(et,'@

    The &erice ?uality Model or &er?ual model is used to measure the differences $etween

    consumers2 perception and e0pectation of serice "uality.

    -ccordin# to the ser"ual model there are fie #aps%

    I GaB refers to the difference $etween customers2 e0pected serice and mana#ement2s

    perceptions of customers2 e0pectations.

    This #ap means that mana#ement may not correctly perceie customer e0pectations.

    II GaB refers to the difference $etween mana#ement perceptions of customers2 e0pectations

    and serice "uality specifications.

    This #ap means that althou#h the people in mana#ement leel may perceie the correct

    e0pectations of the customers1 they may not hae suita$le and sufficient serice "uality

    specifications.

    III GaB refers to the difference $etween serice "uality specifications and the real serice

    deliery.

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    This #ap means that althou#h the serice proiders may hae suita$le and sufficient serice

    "uality specifications1 they may not hae the satisfactory serice deliery in the real situat