Project On

RETAIL BANKING AN OVERVIEW OF HDFC BANK

Master of Business Administration (Finance)

Submitted in partial fulfillment of the requirements for award of master

of business administration of Tilak Maharashtra University, Pune.

Submitted by

Mr. Rajesh Agamudyar .p

PRN No.

of

_______________________

Guided by Prof. Subramaniam

Tilak Maharashtra University

Gultekdi, Pune 411037.

0

Tilak Maharashtra University, Pune

(Deemed under Section 3 of UGC Act 1956 Vide notificationNo. F.9-19/85 – U3 dated 24th April 1987 By the Government of India)

Vidyapeeth Bhavan, Gultekdi, Pune – 411037

CERTIFICATE

This is to Certify that the project titled “Retail Banking An

Overview of HDFC BANK” is a bonafide work carried out by

Mr./Ms. Rajesh Agamudyar .P a student of Master of Business

Administration Semester 3rd/5th, Specialization Finance

PRN__________ under Tilak Maharashtra University, in the

year 2008.

Head of the Department

Examiner Examiner

Internal External

Date:

Place:

University Seal

1

Certificate

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr/Ms Rajesh Agamudyar .P

MBA student of Tilak Maharashtra University, Pune has

successfully collected the data for the project report for

award of Master Degree of Business Administration.

He/she has done the project on “Retail Banking An

Overview of HDFC BANK”.

Company Name Company Seal

Designation

Signature

2

Certificate of Internal Guide

This is to certify that the project titled “Retail Banking An

Overview of HDFC BANK” is a bonafide work carried

out by Mr. Rajesh Agamudyar. P. a candidate for the

award of Master of Business Administration of Tilak

Maharashtra University, Pune under my guidance and

direction.

Signature of guide

Date: Name:Place: Designation:

Institute:

3

4

Tilak Maharashtra University, Pune(Deemed Under Section 3 of UGC Act 1956 Vide notification

No. F.9-19/85 – U3 dated 24th April 1987 By the Government of India)Vidyapeeth Bhavan, Gultekdi, Pune – 411037

CERTIFICATE

This is to Certify that the

project titled “Retail Banking An Overview of

HDFC BANK” is a bonafide work

carried out by Mr./Ms. Rajesh

Agamudyar .P a student of Master of

Business Administration

Semester 3rd/5th, Specialization

Finance PRN__________ under

Tilak Maharashtra University,

in the year 2008.

INDEX

SR. NO. CONTENT

1. Rationale for the study

2. Objective of the study

Title of the Project

Objective of the study

Scope of the study

3. Profile of the company

4. Theoretical Perspective

5. Research Methodology

6Data analysis and interpretations using various chart and graphs.

7. Findings

8. Limitation

9. Expected contribution from the study

Appendix:-

Copies of Questionnaire

Bibliography

5

EXECUTIVE SUMMARY

Retail banking refers to provision of banking services to individuals and small

business where the financial institutions are dealing with large number of low

value transactions. The concept is not new to banks but is now viewed as an

important and attractive market segment that offers opportunities for growth and

profits.

Excess of liquidity, increased dependence of corporate on capital markets, the

rising income of middle class with increase in purchasing power and ability to

handle debts, the increasing amount of NPA’s from corporate portfolio and the

growth and future growth potential of the credit card business has induced banks

to shift from wholesale banking to retail banking.

Retail banking has immense opportunities in a growing economy like India. As

the growth story gets unfolded in India, retail banking is going to emerge a major

driver. Some of the key policy issues relevant to the retail-banking sector are:

financial inclusion, responsible lending, and access to finance, long-term savings,

financial capability, consumer protection, regulation and financial crime

prevention.

The credit portfolio of banking business is fast changing in India. Retail lending is

becoming an important segment of bank credit. Large credit exposures are linked

to bank’s capital. Limits have to be fixed for single exposure in relation to the

capital funds. A paradigm shift from corporate lending and disintermediation are

reasons responsible for resurgence. Banks are facing fierce competition not only

amongst themselves but also from aggressive NBFC's. As a result, interest rates

on retail lending too have come down.

6

Risk management for banks as far as retail banking goes should focus on risk

and return characteristics of consumer loans, revenues from consumer loans,

losses from consumer loans, and the collection strategies, product structuring

and lending policies.

Retention of consumers is going to be a major challenge. Second, rising

indebtedness could turn out to be a cause for concern in the future. Third,

information technology poses both opportunities and challenges. Even with ATM

machines and Internet Banking, many of the customers still prefer the personal

touch of their neighborhood branch bank. Fourth, KYC Issues and money

laundering risks in retail banking is yet another important issue.

Customer service is perhaps the most important dimension of retail banking

followed by constant product innovation. Quality and pace in delivery,

introduction of new channels of delivery, cross selling of products, price bundling,

and most important of all by become technology savvy.

7

CHAPTER- 1

RATIONAL FOR THE STUDY

8

Concept of Retail Banking:-

Retail banking is, however, quite broad in nature - it refers to the dealing of

commercial banks with individual customers, both on liabilities and assets sides

of the balance sheet. Fixed, current / savings accounts on the liabilities side; and

mortgages, loans (e.g., personal, housing, auto, and educational) on the assets

side, are the more important of the products offered by banks. Related ancillary

services include credit cards, or depository services. Today's Retail banking

sector is characterized by three basic characteristics:

Multiple products (deposits, credit cards, insurance, investments and

securities);

Multiple channels of distribution (call centre, branch, Internet and

kiosk); and

Multiple customer groups (consumer, small business, and corporate).

What is the nature of Retail banking? In a recent book, Retail banking has been

described as "hotter than vindaloo". Considering the fact that vindaloo, the

Indian-English innovative curry available in umpteen numbers of restaurants of

London, is indeed very hot and spicy, it seems that Retail banking is perceived to

be the in-thing in today's world of banking.

There are various banks providing the retail services to the consenter all over

India namely HDFC Bank, ICICI Bank, SBI, HSBC Bank, Axis Bank etc.

9

WHY ARE BANKS CHANGING TO RETAIL BANKING?

Banks are awash with liquidity. Prime corporates do not borrow from banks

except at sub-PLR rates. Banks do not favor other corporates. Suddenly there is

a great change in attitude of banks. The name of the game is no longer ‘Lending

to big corporates, huge amounts to create loan assets’. Banks invest their

resources in government paper to the hilt and then scout for hitherto neglected

retail borrowers for lending. Retail credit is now welcomed even from RBI’s

perspective. There are no longer any regulatory hurdles. Consumer credit is no

longer considered as unproductive, as it triggers demand for consumer products,

which in turn help manufacturers in a period of economic slowdown. Retail to

project credit stands to a ratio of 3: 1. While the rates of interest on consumer

credit have still fallen, there is a scope for further reduction. Perhaps, competition

will further bring down the interest rates.

Fixed interest rates on housing loan have sharply fallen, but not the floating

rates, which are linked to medium and long-term PLRs. Banks, refuse to reduce

these rates, which appears rather unfair. But then the consumers still needs

innovative products like graduated payment mortgages etc., in place of stand

alone EMI structures.

SME sector borrowers still appear to be suffering from inadequate and delayed

credit delivery this sector has immense potential for growth and banks have to

devise innovative strategies to fund their ventures on the principle of

entrepreneurship and bank ability rather than mere collateral securities.

Micro finance, another area of retail credit, has unfortunately become a so-called

priority sector credit. Perhaps it will be a great idea if it is delinked from the

obnoxious priority tag and thereby allow banks to display creativity in financing

10

the sector, especially in rural and semi-urban areas where its potential for

positive transformation of socio-economic conditions is immense. Banks are

gradually appreciating the virtue of spreading the credit risk by financing large

number of small (Retail) borrowers.

Credit card business is growing and even government banks have started

marketing cards. Surprisingly, they still do not leverage the network of branches

and availability of surplus manpower into effective marketing. The interest rates

on credit cards that are 30 percent per annum refuse to come down. May be with

the active participation of many banks in this lucrative business, the customer will

eventually have the benefit of low rates. Thanks to the on set of ATMs, channel

migration is visible.

The personal banking segment customers have become the center of attraction.

It is their deposit and savings account that are actively sought after, and not

mega deposits at a slightly higher rate of interest. Banks are truly spreading their

deposit net rather widely.

It perhaps apt to quote what Hugh McCulloch, secretary of the treasury – UK,

said long ago – ‘Distribute your loans rather than concentrate them in a few

hands. Large loans to a single borrower or a firm, although some times proper

and necessary, are generally injudicious and frequently unsafe. Large borrowers

are apt to control the bank, and when this is the relation between a bank and its

customers, it is not difficult to decide which one in the end will suffer”.

11

Characteristic of Retail Banking:-

Let me briefly highlight some of the basic reasons.

1. Economic prosperity and the consequent increase in purchasing power have

given a fillip to a consumer boom. Note that during the 10 years after 1992,

India’s economy grew at an average rate of 6.8 percent and continues to grow at

the almost the same rate – not many countries in the world match this

performance.

2. Changing consumer demographics indicate vast potential for growth in

consumption both qualitatively and quantitatively. India is one of the countries

having highest proportion (70%) of the population below 35 years of age (young

population). The BRIC report of the Goldman-Sachs, which predicted a bright

future for Brazil, Russia, India and China, mentioned Indian demographic

advantage as an important positive factor for India.

3. Technological factors played a major role. Convenience banking in the form of

debit cards, internet and phone- banking, anywhere and anytime banking has

attracted many new customers into the banking field. Technological innovations

relating to increasing use of credit / debit cards, ATMs, direct debits and phone

banking has contributed to the growth of retail banking in India.

4. The Treasury income of the banks, which had strengthened the bottom lines of

banks for the past few years, has been on the decline during the last two years.

In such a scenario, retail business provides a good vehicle of profit maximization.

Considering the fact that retail’s share in impaired assets is far lower than the

overall bank loans and advances, retail loans have put comparatively less

provisioning burden on banks apart from diversifying their income streams.

5. Decline in interest rates has also contributed to the growth of retail credit by

generating the demand for such credit.

12

RETAIL BANKING:-

The Retail Banking environment today is changing fast. The changing customer

demographics demands to create a differentiated application based on scalable

technology, improved service and banking convenience. Higher penetration of

technology and increase in global literacy levels has set up the expectations of

the customer higher than never before. Increasing use of modern technology

has further enhanced reach and accessibility.

The market today gives us a challenge to provide multiple and innovative

contemporary services to the customer through a consolidated window as so to

ensure that the bank’s customer gets “Uniformity and Consistency” of service

delivery across time and at every touch point across all channels. The pace of

innovation is accelerating and security threat has become prime of all electronic

transactions. High cost structure rendering mass-market servicing is

prohibitively expensive.

Present day tech-savvy bankers are now more looking at reduction in their

operating costs by adopting scalable and secure technology thereby reducing

the response time to their customers so as to improve their client base and

economies of scale.

The solution lies to market demands and challenges lies in innovation of new

offering with minimum dependence on branches – a multi-channel bank and to

eliminate the disadvantage of an inadequate branch network. Generation of

leads to cross sell and creating additional revenues with utmost customer

satisfaction has become focal point worldwide for the success of a Bank.

Retail Banking solution centre in Polaris has established itself as a “One-stop

solution for Retail Banking” to cater to the customers with an aim to create a

sustainable profitable core proposition.

Maximum services availing by customer:-

13

Our Major Offerings:-

Retail Banking solutions and services.

Credit cards

Internet Banking.

Mortgages practice.

Multi-Channel Integration.

Business Rule Engine.

Customer Relationship Management.

ATM Solutions and services

Key Benefits Associated with Offerings:-

On-line, real time processing and cost saving thru Multi channel

Transactions.

Relationship banking enabled through extensive mining of all customer

transactions.

Rapid time-to-market with new product and service offerings.

Rapid Customer Acquisition. Multi-currency and multi-language support

so as to ensure geographic reach across continents.

Multi-layer security, monitoring and reporting.

Seamless integration with advanced delivery systems including teller and branch

automated teller

Retail Banking in India 2008:-

14

Retail banking in India is not a new phenomenon. It has always been prevalent in

India in various forms. For the last few years it has become synonymous with

mainstream banking for many banks.

The typical products offered in the Indian Retail banking segment are housing

loans, consumption loans for purchase of durables, auto loans, credit cards and

educational loans. The loans are marketed under attractive brand names to

differentiate the products offered by different banks. Credit card is another rapidly

growing.

While new generation private sector banks have been able to create a niche in

this regard, the public sector banks have not lagged behind. Leveraging their

vast branch network and outreach, public sector banks have aggressively

forayed to garner a larger slice of the retail pie. By international standards,

however, there is still much scope for Retail banking in India. After all, retail loans

constitute less than seven per cent of GDP in India vis-à-vis about 35 per cent for

other Asian economies — South Korea (55 per cent), Taiwan (52 per cent),

Malaysia (33 per cent) and Thailand (18 per cent). As Retail banking in India is

still growing from modest base, there is a likelihood that the growth numbers

seem to get somewhat exaggerated. One, thus, has to exercise caution is

interpreting the growth of Retail banking in India.

The annual growth in bank credit to the commercial sector is at 25.4%as on

March 31, 2007 and was lower than 27.2% against previous year. Till 2010, retail

banking is expected to grow at a CAGR of 28% to touch a figure of INR 9,700

billion. This requires expansion and diversification of retail product portfolio,

better penetration and faster service mechanism.

15

The Retail Banking Industry in India covers industry segments like housing loan,

auto loan, personal loan, education loan, consumer durable loan, credit card etc.

Total 22 major retail banks in India are covered in terms of their performance,

strategy and outlook.

Key Highlights Covered:-

- During 2006-07, gross credit extended by Indian commercial banks grew by

34.83% to touch INR 19,495 billion.

- Bank increase deposit Rs.57988 crores during the period of 2007 against

Rs.45, 384 crores during the period of 2006. And that is 19.3% from 16.3% o

HDFC Bank.

- Retail credit constitutes about 25% of the total credit and has grown by 28.0%

to INR 4,218.3 billion

- The annual growth in bank credit to the commercial sector is at 25.4% as on

March 31, 2007 and was lower than 27.2% against previous year.

- Till 2010, retail banking is expected to grow at a CAGR of 28% to touch a figure

of INR 9,700 billion.

16

ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING

ADVANTAGES:-

Retail banking has inherent advantages outweighing certain disadvantages.

Advantages are analyzed from the resource angle and asset angle.

RESOURCES SIDE

Retail deposits are stable and constitute core deposits.

They are interest insensitive and less bargaining for additional interest.

They constitute low cost funds for the banks.

Effective customer relationship management with the retail customers built

a strong a strong customer base.

Retail banking increases the subsidiary business of the banks.

ASSETS SIDE

Retail banking results in better yield and improved bottom line for a bank.

Retail segment is a good avenue for funds deployment.

Consumer loans are presumed to be of lower risk and NPA perception.

Helps economic revival of the nation through increased production activity.

Improves lifestyle and fulfills aspirations of the people through affordable

credit.

Innovative product development credit.

Retail banking involves minimum marketing efforts in a demand –driven

economy.

Diversified portfolio due to huge customer base enables bank to reduce

their dependence on few or single borrower

Banks can earn good profits by providing non fund based or fee based

services without deploying their funds.

17

DISADVANTAGES:-

Designing own and new financial products is very costly and time

consuming for the bank.

Customers now-a-days prefer net banking to branch banking. The banks

that are slow in introducing technology-based products, are finding it

difficult to retain the customers who wish to opt for net banking.

Customers are attracted towards other financial products like mutual funds

etc.

Though banks are investing heavily in technology, they are not able to

exploit the same to the full extent.

Major disadvantages are monitoring and follow up of huge volume of loan

accounts inducing banks to spend heavily in human resource department.

Long term loans like housing loan due to its long repayment term in the

absence of proper follow-up, can become NPAs.

The volume of amount borrowed by a single customer is very low as

compared to wholesale banking. This does not allow banks to exploit the

advantage of earning huge profits from single customer as in case of

wholesale banking.

18

CHAPTER - 2

OBJECTIVE OF THE STUDY

19

TITLE OF THE PROJECT:-

“RETAIL BANKING PRODUCTS AND SERVICES PROVIDED BY

HDFC BANK”

OBJECTIVE OF THE STUDY:-

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

full range of financial products and banking services.

Giving the customer a one-stop window for all his / her banking

requirements. The products are backed by world class service and

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

through alternative delivery channels like ATMs, Phone Banking, Net

Banking and Mobile- Banking.

To provide customer satisfaction through retail banking services.

To study the needs of the middle-class, higher middle-class in the banking

segment and provide solutions.

To identify the extent of households / customers availing retail banking

facilities.

To study the issues and challenges in retail banking

20

To study the recent trends in retail banking

To analyze the transforming retail banking processes and focus on

evolving process models.

To emphasize on the trends of customer relationship management in retail

banking.

To estimate the future growth of Indian retail banking.

To understand Optimization of retail banking channels.

SCOPE OF THE STUDY:

Study related to the products and services of retail banking provided by

HDFC Bank.

All Over India HDFC Bank centers

Objective of rationale study.

Need and dislike of customers related to products and services.

Measures to improve the level of customer’s expectation.

21

CHAPTER - 3

PROFILE OF THE COMPANY

22

About HDFC Bank:-

The Housing Development Finance Corporation Limited (HDFC) was amongst

the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI)

to set up a bank in the private sector, as part of the RBI’s liberalization of the

Indian Banking Industry in 1994. The bank was incorporated in August 1994 in

the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India.

HDFC Bank commenced operations as a Scheduled Commercial Bank in

January 1995.

HDFC is India’s premier housing finance company and enjoys an impeccable

track record in India as well as in international markets. Since its inception in

1977, the Corporation has maintained a consistent and healthy growth in its

operations to remain the market leader in mortgages. Its outstanding loan

portfolio covers well over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and

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

its experience in the financial markets, a strong market reputation, large

shareholder base and unique consumer franchise, HDFC was ideally positioned

to promote a bank in the Indian environment.

Capital Structure:-

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

capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the

bank’s equity and about 19.4% of the equity is held by the ADS Depository (in

respect of the bank’s American Depository Shares (ADS) Issue). Roughly 31.3%

of the equity is held by Foreign Institutional Investors (FIIs) and the bank has

about 190,000 shareholders. The shares are listed on the ‘The Stock Exchange,

Mumbai and the National Stock Exchange. The bank’s American Depository

23

Shares are listed on the New York Stock Exchange (NYSE) under the symbol

“HDB”.

Distribution Network:-

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

network of over 761 branches spread over 327 cities across India. All branches

are linked on an online real-time basis. Customers in allover 120 locations are

also serviced through Telephone Banking.

The Bank also has a network of about over 1977 networked ATMs across these

cities. Moreover, HDFC Bank’s ATM network can be accessed by all domestic

and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and

American Express Credit / Charge cardholders.

Technology:-

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

technology and communication systems. All the banks branches have online

connectivity, which enable the bank to offer speedy funds transfer facilities to its

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

branch network and Automated Teller Machines (ATMs).

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

technology available internationally, to build the infrastructure for a world class

bank. The Bank’s business in supported by scalable and robust systems which

ensure that the bank clients always get the finest services.

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

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

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

24

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

build market share.

Businesses:-

HDFC Bank offers a wide range of commercial and transactional banking

services and treasury products to wholesale and retail customers. The bank has

three key business segments are follows.

Wholesale Banking Services:-

The Banks target market ranges from large, blue-chip manufacturing companies

in the Indian corporate to small & mid-sized corporate and agri-based business.

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

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

transactional services, cash management, etc. the bank is also a leading

provider of structured solutions, which combine cash management services with

vendor and distributor finance for facilitating superior supply chain management

for its corporate customers. Based on its superior product delivery / service levels

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

banking consortia of a number of leading Indian corporate including

multinationals, companies from the domestic business houses and prime public

sector companies. It is recognized as a leading provider of cash management

and transactional banking solutions to corporate customers, mutual funds, stock

exchange and banks.

25

Retail Banking Services:-

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

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

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

class service and delivered to the customers through the growing branch

network, as well as through alternative delivery channels like ATMs, Phone

Banking, Net-Banking and Mobile Banking.

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

Bank Plus and the Investment Advisory Services programs have been designed

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

information and advice on various investment avenues. The Bank also has a

wide array of retail loan products including Auto Loans, Loans against

marketable securities, Personal Loans and Loans for Two-wheelers. It is also a

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

providing customers the facility to hold their investments in electronic form.

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

association with VISA (VISA Electron) and issues the MasterCard Maestro debit

card as well. The Bank launched its credit card business in late 2001. By

September 30, 2005, the bank had a total card base (Debit and credit cards) of

5.2 million cards. The Bank is also one of the leading players in the “merchant

acquiring” business with over 50,000 Point-of –sale (POS) terminals for debit /

credit cards acceptance at merchant establishments.

Treasury:-

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

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

With the liberalization of the financial markets in India, corporate need more

sophisticated risk management information, advice and product structures.

These and fine pricing on various treasury products and provided through the

26

bank‘s Treasury team. To comply with statutory reserve requirements, the bank

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

business is responsible for managing the returns and market risk on this

investment portfolio.

Awards:-

HDFC Bank has won many awards for its excellent service. Major among

them are “Best Bank in India” by Hong Kong based Finance Asia

Magazine in 2005.

“Company of the Year” Award for Corporate Excellence 2004-05.

Asian Banker Best Retail Bank in India Award 2007 for outstanding

performance.

27

CHAPTER - 4

THEORETICAL PERSPECTIVE

28

Focus shifts to retail banking

With spreads shrinking, Indian banks are following their global counterparts and

focusing on increasing the share of their fee – based income. The ratio of non-

interest income to total funds has already increased for some banks and the first

quarter results of the current fiscal affirm this fact.

Within the banking sector, increasing competition and growing risk remain

important challenges, as banks concentrate on consolidation to meet

competition, the key driver in staying ahead of the competition is technology and

how well banks use it to meet the needs of their customers. In today’s

sophisticated market, credit risk along with market risk and operational risk are

the real challenges before banks”.

During April to mid-June, the increase in deposits was Rs.57, 988 crores during

the period of 2007 against Rs.45, 389 crores during the period of 2006 in the

previous year, that is, a rise of 19.3 percent as against 16.3 percent in the same

period last year. The proportion of time deposits as compared to demand

deposits was higher indicating spreads may shrink further. “In 2001-02, the

overall growth in deposits is expected to be lower at around 16 percent, largely

due to slower growth in money supply compared with that in 2000-01, lower

interest rates on deposits especially bulk deposits and reduction in dividend

distribution taxes from 20 percent to 10 percent on mutual funds making mutual

funds a more tad-efficient investment.” Said Mr. M.M. Joseph, Research Head of

SBI Capital Markets.

29

As the growth in scheduled commercial banks credit slowed down to 15.6

percent on a year-on-year basis from 23 percent a year ago. There was the

lowest growth recorded in year 1999 when the year on year increase in bank

credit was 15 percent. In absolute terms total credit increase by Rs.7743 crores

during 2001 against Rs.10965 crores during the corresponding period of the

previous year credit growth remained around 16.5 percent on a year-on-year

basis.

The slowdown could be attributed to lack of credit off-take by the industrial sector

even as food credit continued to surge. Because of the recession and industrial

slowdown, most corporate appear to have postponed their expansion plans and

have put on hold Greenfield projects.

Moreover big corporate are bypassing banks and raising money through the debt

market and commercial papers, which are cheaper than bank credit.

Therefore, banks are being forced to look at the mid-corporate. But, this is a risky

strategy as the risk is concentrated and delinquency higher.

To compensate, most banks have devised strategies to go in for retail banking as

a major thrust area.

“The risk here is distributed and there is a huge market to be tapped,” Some of

the banks which have been aggressive in this area are HDFC Bank, ICICI Bank,

State Bank of India (SBI) and Corporation Bank. Interest rates, especially on

short tenure declined due to a reducing in the Bank rate and cut in interest rates

on contractual savings such as Public Provident Fund (PPF). Some of the major

banks have reduced their prime lending rates (PLRs) and others are likely to

follow suit. “The spreads have been shrinking and banks are searching for other

avenues to protect their bottom lines,”

30

A comparison of old and new private sector banks indicates a clear difference in

profitability. New private sector banks have shown higher ROA and a higher

RONW as compared to old private sector banks. It is also interesting to see the

performance of banks over the previous year.

With spreads shrinking, Indian banks are following their global counterparts and

focusing on increasing the share off their fee-based income. “Fee-based income”

may increase marginally in future.

The ratio of non-interest income to total funds has increased for some banks. A

rising ratio is expected in the future.

The increase in net sales of Corporation Bank is only 5 percent while the rise in

other income is 34 percent. ICICI also raised its other income by 307 percent as

compared to a net sales increase of only 65 percent.

The growth in the economy has been sluggish and banks can no longer afford to

rely on big corporate customers. There is a shift in focus towards retail banking.

Most banks are targeting in middle class and lower middle class segment. Huge

Non-Performing Assets (NPAs) are plaguing old private sector banks. The asset

quality of banks in largely dependent on economic growth and makes it difficult

for them to recover loans till the economy revives.

Some positive policy initiatives have been taken by the Government which will

give an impetus to consolidation in the banking industry. The limit of foreign

direct investment (FDI) in private sector banks has been raised to 49 percent

form 33 percent. This will allow foreign banks to buy a strategic stake in private

sector banks having the latest technology and better quality assets. This year,

the banking industry has witnessed two big mergers. Times Bank Centurion bank

and Punjab bank merged with HDFC Bank and Bank of Madura with ICICI Bank.

Banks could increase their revenue base and leverage on their distribution

31

network by investing in the growing insurance sector. However, the inflows would

be slow to being with. There has also been a thrust on the housing sector.

Flexible financing with lower interest rates has resulted in brisk activity in the

sector. SBI and other banks have launched voluntary retirement scheme (VRS),

and effort to bring down operating cost. There is an increased focus towards auto

loans, car loans, funding for infrastructure, and other fee-based services such as

guarantees and commissions on drafts, gold banking, derivatives and the like.

“Overall, HDFC Bank, ICICI Bank and SBI have shown good performance and

appeared to be geared to take on the challenges,”

These banks are changing their strategy and shifting focus from big corporates to

mid-corporates and also retail banking and housing finance. The Indian banking

system is in the midst of a technological revolution with banks offering anywhere

banking, 24/7 and also attempting to become a one stop financial shop offering

all financial solutions.

It is believed that new private sector banks such HDFC Bank and ICICI Bank has

demonstrated their ability to improve other income, which was previously the

forte of foreign banks due to good service.

This trend is expected to continue. Nationalized banks and old private sector

banks will also follow suit and there is hardly any progress in this area. If old

private sector banks have to service they will have to compete on service.

Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to

2006-07.

In terms of ownership, debit cards are more in number than credit cards but in

terms of transactions, use of credit cards is more prevalent than debit cards.

32

The ATM outlets in India increased at a rate of 28.09% from March 2006 to

March 2007.

Outstanding Education loan segment is expected to grow at 36.41% till March

2009 from March 2007 onwards to Rs. 27000 Crore Mark.

Two wheeler finance industry is projected to forge ahead at a CAGR of 14.21%

till 2009-10 from 2005-06.

Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to

May 2007, and a higher 215.61% growth was recorded in closed ended

schemes.

Increasing number of millionaires in India is increasing the scope of Wealth

Management Services.

Bankable households in India are estimated to move up at a CAGR of 28.10%

during 2007-2011.

Study of Retail Banking Products and Services by HDFC Bank

Wide range of retail banking products and services are offered by the banks,

which cover both Depository and Advances to suit various segments of customer

like salaried persons, businessmen, traders, professionals, pensioners etc. are

as follows:-

Housing loan.

Personal loan.

Vehicle or automobile loan.

Loan for consumer goods.

Credit and Debit cards-Global and international.

33

Loan for holidays.

Insurance products.

Gold loans.

Event loans.

Overdraft.

Mutual funds etc.

Leasing, hire purchase and factoring services

Retail banking depositories in various segments like children, housewives,

salaried class, professionals etc. include the following: -

Flexi deposit accounts.

Savings bank accounts.

Recurring deposit account.

Fixed deposit

Lockers.

Other short-term deposits.

Banks are coming out with more features to add value to retail banking products

and services. These are called VALUE ADDED PRODUCTS AND SERVICES.

These include the following: -

Free collection of specified number of outstation instruments per month.

Instant credit of outstation cheque.

Concession in commission, exchange for issuance of pay orders and

demand drafts.

Issuance of free chequebooks.

Issuance of free ATM cards.

Interest rate options (fixed or floating)

Waiver of credit card issuance fees.

Free issuance of Add On cards to the members of the cardholders.

34

Accident insurance cover.

Arranging for insurance cover on the lockers in the bank.

Reducing the fees charged on locker facilities.

Free execution of standing instructions of customers.

Free investment advisory services.

Legal services for documentation

Services to senior citizens

Other services include: -

Payment of utility bills like electricity bills, telephone bills and water bills

etc. on due date.

Payment of monthly or quarterly education fee for children.

Payment of insurance premium on or before due dates.

Demating of shares, debentures and bonds.

Telephone banking.

Internet banking.

Making payments at doorsteps.

NRI ACCOUNTS

The present menu of bank accounts for Non-Resident Indians (NRIs) has three

categories:

1. Non-Resident (External) Rupee Accounts (NRE)

2. Non-Resident (Ordinary) Rupee Accounts (NRO)

3. Foreign Currency Non-Resident (Banks) Accounts FCNR (B)

35

Opportunities and Challenges of Retail Banking in India:-

Opportunities:-

Retail banking has immense opportunities in a growing economy like

India. As the growth story gets unfolded in India, retail banking is going to

emerge a major driver, recently identified India as the "second most attractive

retail destination" of 30 emergent markets.

The rise of the Indian middle class is an important contributory factor in

this regard. The percentage of middle to high income Indian households is

expected to continue rising. The younger population not only wields increasing

purchasing power, but as far as acquiring personal debt is concerned, they are

perhaps more comfortable than previous generations. Improving consumer

purchasing power, coupled with more liberal attitudes toward personal debt, is

contributing to India’s retail banking segment.

The combination of the above factors promises substantial growth in the retail

sector, which at present is in the nascent stage. Due to bundling of services and

delivery channels, the areas potential conflicts of interest tend to increase in

universal banks and financial conglomerates. Some of the key policy issues

relevant to the retail banking sector are: financial inclusion, responsible lending,

and access to finance, long-term savings, financial capability, consumer

protection, regulation and financial crime prevention. What are the challenges for

the industry and its stakeholders?

36

Challenges:-

What are the challenges for the industry and its stakeholders?

1. Retention of customers is going to be a major challenge. According to a

research by Reichheld and Sasser in the Harvard Business Review, 5 per cent

increase in customer retention can increase profitability by 35 per cent in banking

business, 50 per cent in insurance and brokerage, and 125 per cent in the

consumer credit card market. Thus, banks need to emphasize retaining

customers and increasing market share.

2. Rising indebtedness could turn out to be a cause for concern in the future.

India’s position, of course, is not comparable to that of the developed world

where household debt as a proportion of disposable income is much higher.

Such a scenario creates high uncertainty. Expressing concerns about the high

growth witnessed in the consumer credit segments the Reserve Bank has, as a

temporary measure, put in place risk containment measures and increased the

risk weight from 100 per cent to 125 per cent in the case of consumer credit

including personal loans and credit cards (Mid-term Review of Annual Policy,

2004-05).

3. Information technology poses both opportunities and challenges. Even with

ATM machines and Internet Banking, many consumers still prefer the personal

touch of their neighborhood branch bank. Technology has made it possible to

deliver services throughout the branch bank network, providing instant updates to

checking accounts and rapid movement of money for stock transfers. However,

this dependency on the network has brought IT department’s additional

responsibilities and challenges in managing, maintaining and optimizing the

performance of retail banking networks. Illustratively, ensuring that all bank

products and services are available, at all times, and across the entire

organization is essential for today's retails banks to generate revenues and

remain competitive. Besides, there are network management challenges,

37

whereby keeping these complex, distributed networks and applications operating

properly in support of business objectives becomes essential. Specific

challenges include ensuring that account transaction applications run efficiently

between the branch offices and data centre.

4. KYC Issues and money laundering risks in retail banking is yet another

important issue. Retail lending is often regarded as a low risk area for money

laundering because of the perception of the sums involved. However,

competition for clients may also lead to KYC procedures being waived in the bid

for new business. Banks must also consider seriously the type of identification

documents they will accept and other processes to be completed. The Reserve

Bank has issued details guidelines on application of KYC norms in November

2004.

38

CASE STUDY:-

The HDFC Bank face the problem on E-Remittance flows comes from foreign

country for this they prepaid case study for this to solve the problem on e-

remittance the case study are follow.

Challenge:-

There are large sums remitted into the country by the NRI community. A large

quantum of the flows comes in from the Gulf (Middle East) region. Most of these

inward remittances come through the ' Rupee Drawing / Draft Drawing'

arrangements the Exchange Houses have with Indian Banks,

Solution:-

India Link System seeks to offer a compelling value proposition to the large high

net worth NRI Customer segment. The Service is to allow the NRI community to

remit funds to India efficiently, safely and speedily

Existing enterprise IT Architecture:-

At HDFC Bank Internet banking exists in the context of a mixed, integrated

enterprise IT architecture, featuring solutions deployed on latest hardware -

architecture systems

HDFC Bank's Internet banking solutions feature 3-tier, layered architecture with

distinct layers for presentation, application and enterprise application integration

that interfaces with the bank's host systems.

39

Transaction Flow Architecture

Core bank and corporate net banking interface:-

The “core bank” application system is built on SQL 2000 and is deployed on

EJB / Microsoft. Our corporate net banking developed on J2EE architecture with

Oracle 8.0.5 as database server. The transactions needs to be updated in core

bank are updated to core bank through external file upload a proprietary file

format of Core bank application.

Transaction process::-

The NRI transactions “Remittance details” are entered in the system based on

the remitter inputs. All authorized transactions are sent to banks’ back-end

application for updates. These transactions are basically for account-to-account

transfers.

India Link

MS SQL 2000

CORE BANK

CMS

SQL 2000

Oracle

File Upload

File Upload

40

CMS and corporate net banking interface:-

The core Cash Management System (CMS) is built on Oracle and Microsoft

technologies. Both E-net and CMS interface is done online for DD/PO status and

reference number.

Transaction process:

For beneficiaries not having account with bank, the payments are sent to

beneficiary through DD/PO.

The NRI transactions “Remittance details” are entered in the system based on

the remitter inputs. All authorized transactions details are sent to Cash

Management System (CMS) in external file format (DBF). The reference

numbers like CQ/DD number are fetched directly from CMS data base from ILK

online.

Solution NET Advantage

Multiple exchange supports.

Exchanges’ proprietary file uploads for remittances; there is no change in

the existing exchange operations for money transactions.

Relies on an open architecture

Powerful user management features

Track remittance online

Courier tracking for DD/PO dispatches

41

CHAPER – 5

RESEARCH METHODOLOGY

42

METHODOLOGY AND SAMPLE DESIGN

The unit of observation and analysis of this survey of the bank customers of

HDFC Bank. The sampling frame in the form of a list of all customers is neither

readily available nor can it be easily prepared. One of the notable features of the

design is that the sample has been taken from a cross section of customers in

Mumbai with the objective of enhancing the precision of the estimates. The total

number of branches in India is 761 out of which 70 branches are covered by

Mumbai city. Since most of the policy decisions are been taken by the head

office which is located at Mumbai most of the centers are located at Mumbai.

Hence Mumbai and its suburb were covered in the sampling survey. A total of

1000 customers in different branches of HDFC Bank were selected in the

Sample frame. Information on some basic characteristics of the customer along

with the service availed from HDFC Bank was collected from these customers. A

sub sample of 50 customers was then used for detailed canvassing.

Coverage: -

Mumbai City and its suburb have been covered by the survey.

Reference Period:

The field operation for the customer pre-tested questionnaire was carried out

during July and August, 2008.

Definition of Customer:

“An organization or individual that receives a product or service from a

company”.

43

A Definition to Guide Customer Service:-

Define by Jack Speer, BizWatch Publisher “Excellent customer service is

the process by which your organization delivers its services or products in

a way that allows the customer to access them in the most efficient, fair,

cost effective, and humanly satisfying and pleasurable manner possible.”

Stratification and Selection of sample Customers:

The Customers are also classified into the following five income categories

based on the data collected on customer’s income. The income categories

were:-

Low, with monthly income of Rs.10, 000/- and below.

Lower Middle, with monthly income between Rs.10,000-Rs.25,000/-

Middle, with monthly income between Rs.25,000/- - Rs.50,000/-

Upper Middle, with monthly income between Rs.50,001 to Rs.1,00,000/-

High, with monthly income more than Rs.1,00,000/-

Customers in the higher income groups could generally utilize the

maximum product and services provide by the bank. And in the upper Middle

income group customer utilized the services and product in the same proportion

of higher incomer group of customers. And in the middle income and Lower

Middle incomer group customer utilized the services and product from the bank

comparatively less then the upper middle and higher income group customers.

Because high and upper income group customers expected to have larger

44

savings available for investment, which they invest in a variety of instruments

provided by the bank.

Sample Size and characteristics

Thus, a total of 20 sample customers were selected from each

sample, for canvassing the customer questionnaire. In all 50 customers were

selected and a detailed information was collected from these selected customers

through a pre-tested questionnaire

45

CHAPTER 6

DATA ANALYSIS AND

INTERPRETATIONS USING

VARIOUS CHARTS AND GRAPHS

46

Distribution of Sample Customers according to their Monthly income

Monthly Income Group No. of Customers

Unto Rs.10,000 07

Rs.10,001- Rs.25000 22

Rs.25001- Rs.50000 12

Rs.50001- Rs.100000 06

Rs.100001 and above 03

It can be seen from the above, that the data collected for sample

customers according to their monthly income. The Customers having a monthly

income of Rs.10001 to Rs.25000 was the maximum i.e. 22 numbers of

customers. And the second higher income group is from Rs.25001 to Rs.50000

i.e 12 numbers of customers. And least income monthly group is from Rs.100001

and above i.e. 3 numbers of customers.

Distribution of customer on the basic of only availing services out of 50

customers:-

Type of Services and Products No of customers

Net Banking 27

Phone Banking 15

E-Payment 07

Insta Alerts 20

Locker 04

ATMs 47

47

It can be seen from the above table and the diagram that maximum number of

customers using ATMs facility that is 47 number of customer utilized the ATMs

facility out of 50 numbers of customers and second higher services utilized by the

customers is Net banking that is 27 out of 50 customers. Third facility used by

customers is Insta Alerts that is 20 out of 50 customers. Minimum number of

customers using Locker and E-Payment services that is 04 and 07 out of 50

customers.

Since the purpose of the survey is only to estimate the number and level of

services availed of by the customers. The information on the type of the services

was also collected and the distribution is us under.

Distribution of customer on the basic of type of services availed:-

Type of Service

Income Level

Below

10000

10001 -

25000

25001 –

50000

50001 –

100000

Above

100000

Net Banking 2 10 8 4 3

Phone Banking 2 3 6 3 1

48

E-Payment - - 2 4 1

Insta Alerts - 8 6 3 3

Locker -- -- -- 1 3

ATMs 4 22 12 6 3

It can be seen from the above, that the data collected for sample customers

according to their monthly level of income. All kind off services are used by only

upper middle and high income group customers that can seen from the above

table. Below Rs.10000 monthly incomes group customers normally use ATMs,

net banking and phone banking services. And Rs.10001 to Rs.25000 monthly

income group customers use net banking, phone banking, insta Alerts and

ATMs. And above Rs.25001 to Rs.50000 income group customers use net

banking, phone banking, E-payment and ATMs services. But from the above

table Net banking, phone banking and ATMs services are used all kind of income

group customers and the service like locker and E-payment are used only upper

middle and high incomer group customers. But the maximum type of services

availed by the customer like ATMs, Net Banking and Phone Banking.

Profession wise Distribution of monthly income:-

ProfessionLess than

10000

Above 10001

– 25000

25001 –

5000050001 – 100000

Above 100001

Professional -- -- -- 1 1

Business Men -- 2 8 3 2

Salaried Person 2 20 4 2 --

Others 5 -- -- -- --

49

It can be seen from the above table that profession wise distribution off monthly

income are given in this salaried persons monthly income distribution are more

number i.e. less than 10000/- (2 persons), above 10001 – 25000/- (20 persons),

25001-50000/- (4 persons) and 50001 – 100000/- (2 persons). And the second

maximum distribution is Businessmen.

Age Wise Distribution of monthly income:-

AgeLess than

10000

Above 10001 – 25000

25001 – 50000

50001 – 100000

Above 100000

18 – 24 5 4 1

25 – 39 2 15 4 3

40 – 59 -- 2 7 2 2

60 and above -- 1 -- 1 1

From the above table the age wise distribution of monthly income are given in

this the age between 25 – 39 the monthly income group customers are more

comparatively other age group. And the second maximum monthly income age

group is 40 – 59. And the least income age group are 60 and above.

The level of services provided by the Bank:-

Level of Services

Number of

customers

Excellent 10

Very Good 9

Good 28

50

Average 7

Bad 2

It can be seen from the above table that the level of services provided by the

bank. In this table 28 % of customers say “Good”. And 10% of customers say

“Excellent”, 9% of customers say “Very Good”, 7% of customers say “Average”

and 2% of customers say “Bad”.

Ranking of the customers according to the factor are given under:-

Ranking

Number of customers

Advise

from

Friends

Independentl

y

Existing

Customers

Tele

Marketing

Economic

situation

1 19 23 1 3 4

2 18 18 7 5 2

3 10 5 16 9 10

4 2 2 14 16 16

5 1 2 12 17 18

51

From the above table and diagram we can see that the ranking of the customers

according to the factors the first rank is given to “Independently “ factors the

decision are taken by the customer itself rather then he ask other or other

factors. The second rank is given to “Advise from Friends” and “Independently” in

this customer takes some advice from friends and relative before take some

services from the bank. The third rank gives to “Existing customers” the customer

asks some kind of information from exiting customers before take the services

from the customers. Fourth rank gives to”Tele Marketing” and “Economic

Situation” in this the customer take some kind of advice from the tele-marketing

executives and customer itself analysis the economic situation regarding their

products and services accordingly the customer take the decision. And the fifth

rank is given to “Economic situation”. The services may be Phone Banking, Net

Banking, ATMs, Mobile Banking, E-Payment, Insta Alerts and Lockers Etc.

before use the services from the bank the customer are rank the services and

then he buy the services from the bank.

52

CHAPTER -7

FINDING

53

The survey findings are follows:-

Debit cards have become very popular in India. But, as of date, ATM/Debit

cards have still their primary usage for cash withdrawal from the ATM

machines.

While credit cards are more popular in making payments online. There is a

growing awareness regarding RTGS amongst Indians but still around 73%

of the respondents surveyed have never used RTGS.

Fund transfer and Online bill payment emerged as the most popular

payment options in internet banking, with over 60% of the respondents

using this method.

Interestingly, many customers have been unable to use internet banking

due to the non availability of site or connectivity problems. Moreover, a

trust in the security of internet banking is yet to develop amongst the

majority of bank customers.

As far as mobile banking is concerned, its popularity is limited mainly due

to the charges for sending SMS's are not justified. Despite the available

54

payment options, how well customers are able to use them is still a

question. The key differentiator in future will be how banks can increase

usage of these payment options by the end user. Competitive analysis of

Indian retail sector vis-à-vis global retail industry.

Supportive policies and regulations of government for the retail sector.

Issues and implications related to the current foreign direct investment in

the retail sector.

Market size and growth of Indian retail sector segmented by sectors, retail

formats, and regional segmentations.

Increasing employment opportunities with stepping up of international

retail brands in India.

Behavioral pattern, preferences and expenditure capacity of Indian

consumers.

Increasing acceptance of e-retailing among Indian consumers.

Evolution of franchise businesses in Indian retail sector.

IT trends in Indian retail industry and technological expansion leading to

the stores’ Security.

Customers’ preference to more and more alternate channels for

convenience.

Fee based income from remittance is shrinking due to RTGS and other

technology initiatives.

Rapid penetration of Personal Computers, Mobile phones and on-line

Trading and purchase options encouraged increased usage of technology

banking.

55

Booming economy and continuous per capita income will further push the

living standards of people.

Banks continue to offer valued added Products and Services for

customer acquisition and retention.

Retail Banking technology is gaining its importance due to the continued

demand

Retail Banking customers are demanding more and more features and

product differentiation.

More and more Retail customers in the age group of 25-39 with high

saving potential.

Every Bank has enough opportunities to perform without unhealthy

competition.

Business potential in Semi urban and rural areas are very high, which is

yet to be explored.

56

CHAPTER - 8

LIMITATION

From this report provides an insight into ATM users’ perceptions,

requirements and problems Report will help banks and vendors in making

ATM transactions user friendly and satisfying.

The findings of the survey were rather surprising – from more people

accepting the norms of depositing cash / cheques in these ATMs to

waiting in long queues and finding no money left in the machine.

57

As many banks encourage the use of ATMs to their clients, ATMs have

today become indispensable tools for majority of banking transactions.

But, the drawbacks still seem to outweigh the benefits.

The trends have changed with people visiting more frequently to these

machines than monthly and having started using value-added services like

bill-payment and mobile top-ups among others.

Also highlights minor issues generally overlooked by banks – like non

availability of deposit envelopes and not being able to print receipts after a

transaction.

Customer tendency to borrow more and repay less may adversely affect

the NPA levels in future.

Future delinquency rates are not properly factored in fixing the Retail

credit pricing by few banks

Increased risk weight of Consumer Credit

Liquidity mismatches may emerge as an issue

Slight change in economic scenario may affect the whole system

Existing Retail scoring models may not predict impact of mild recession

Growing incidents of frauds and cyber crimes

58

59

CHAPTER - 9

EXPECTED CONTRIBUTIION

FROM THE STUDY

Conclusion:-

The banking industry has a very important role to play in the

common man’s life. The middle class in India is big in number and ever growing.

Therefore, in order to satisfy the requirements of this growing middle class,

banks have to offer the best of financial products and services, and that too at an

attractive cost. Doing this project was a great experience and in the deal I learnt

quite a bit about the banking sector, specially the retail segment. In finding out

60

more about this sector, I have collected invaluable information about the banking

industry. What I have tried to do here is to gain an understanding of banks,

particularly focusing my attention on the retail segment, which is such an

important part of each one’s life today.

As a very famous saying goes “Degrees Can Be Put On

Display, But Knowledge Can’t”, what I have presented here is just a project but

what I have earned in the meanwhile is something which is much more precious

that anything in this world i.e. knowledge. So doing this project has definitely

added to my knowledge.

QUESTIONNAIRE

1) Name of the Customer: ___________________________

2) Address of the Customer: __________________________

__________________________

__________________________

61

3) Age: __________

4) Occupation______________________

5) Occupation_____________________

Less than Rs.10000/-

More than Rs.10001/-to 25000/-

More than Rs.25001/-to 50000/-

More than Rs.50001/-to 100000/-

Above 100000/-

         

6) What facilities you utilize from your bank

Home Loan Saving A/cCredit Card

Net Banking

ATM

         

E-Payment Insta Alerts Lockers.OD / FD / CC

       

7) Whether you are utilizing the services provided by the bank?

Yes No

   

8) How much time you utilized these services in a year?

Services Daily Weekly Monthly Quarterly YearlyATM          

E-Payment          

Insta Alerts          

Net Banking          Phone Banking          

Locker          

62

9) Please rank the factors according to you is necessary for utilizing the services of bank

Advise from Friends  

Independently  

Existing customers  

Phone Banking  

Economic Situation  

10) What is the level of service provided by HDFC BANK?

Excellent Very Good Good

     

Average Bad

   

11) Based on your past experience with bank, have you ever changed your Bank?

Yes No

   

12) What measures should be taken for improving the level of services of HDFC Bank. _________________________________________________________________

_________________________________________________________________

Bibliography

HDFC Bank brochures

www.hdfcbank.com

The Times of India

The Economics Times

63

Annual Report of HDFC Bank 2006-2007

64