hdfc Bank project

A

PROJECT RPORT

ON

“IMPACT OF NON HUMAN BANKING CHANNELS LIKE NET BANKING ON CUSTOMER ENGAGEMENT”

FOR

SUBMITTED TO

BALAJI INSTITUTE OF TELECOM AND MANAGEMENT

BY

DEVENDRA PAL JADON

Roll No.-TM1312422

Class-Finance and Marketing

IN FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGENENT (PGDM)

2013-2015

BALAJI INSTITUTE OF TELECOM AND MANAGEMENT

(BITM),PUNE

Balaji Institute Of Telecom & Management,pune (Maharashtra)

ACKNOWLEDGEMENT

A project usually falls short of its expectation unless guided by the right person at the

right time.Success of a project is an outcome of sincere efforts ,channeled in the right

direction ,efficient supervision and valuable professional guidance.

This project would not have completed without the direct and indirect help and

guidance of such luminaries.They provide me with the necessary resources and

atmosphere conductive for healthy learning and training .

At the outset I would like to take this opportunity to gratefully acknowledge the very

kind and patient guidance I have received from my project mentor Mr.Shubhan

sundaray ,Branch Manager ,HDFC Bank and Himanshu Joshi,personal

banker.Without his critical evaluation and suggestion at every stage of the

project,this report could not have reached its present form.In addition,my internal

guide Associate prof.Dr.Chitta Shyamsunder and Associate prof Ashish Gadekar

has critically evaluated my each step in developing this report.

A special thanks to Mr.Quresh Moochhala who guided me alot in my project.

Lastly ,I would like to thank all the members of HDFC Bank and my colleagues who

gave me fruitful informatio to finish my project.

Devendra pal jadon


TABLE OF CONTENTS

Sr.No Title Page No.

1 Certificates 1

2 Executive Summary 5

3 Introduction 8

4 Company & product profile 11

5 Secondary Research Data 32

6 Analysis of Questionnaires & interpretation

35

7 Conclusions 47

8 Recommendations 47

9 Bibliography 48

10 Appendix 49


CERTIFICATES


EXECUTIVE SUMMARY

Summer Project is business organization in fuse among student a sense of

critical analysis of the real managerial situation to which they are exposed.This gins

them an opportunity to apply their conceptual theoretical & imaginative skills in a

real life situation and to evaluate the results there of.

HDFC is a name of renowned not only in Housing but also in Banking and

Insurance sector.HDFC Bank is now a brand image in private banking setor.While

my 60 days project, I Mainly focused on Digital Banking Channel for Banking

oprations and impact of Nonhuman banking channel like Net banking on customer

Engagement for HDFC bank.practical training through experts of HDFC Bank gave

me actual input to fulfill my real aim.

This report is the written account of what I learnt during my training. I

wish those going through it will not only find it real but also get usefull information.

:: Objective of Study ::


Impact of Non Humen banking Channel like Net banking on Customer

Engagement.

Internet Banking ia an electroic transaction system which allow customer of a

financial institutes to conduct financial transactions on a secured websisite operated

by the institution,which can be a retail bank,virtual bank,credit union or building

society.

To access a financial institution’s online banking facility,a customer having personal

internet access must register with the institution for the service ,and set up some

password for customer varification.Financial institutions now routinely allocate

customer numbers(customer ID),whether or not customers intend to access their

online banking facility.customer’s ID are normally not the same as account

numbers,because numbers of account can be linked to the one customer.The customer

will link to the customer ID any of those accounts which customer controls ,which

may be cheque,savings,loan creditcard and other accounts.

To access online banking ,the customer would go to the financial institution’s website

,and enter the online banking facility using the customer number and

password .customer also can download applcation for net banking from internet.

Online banking facilities offered by HDFC Bank have many featured and capabilities

in common,but also have some that are applicable specific.

A bank customer can perform non –transaction tasks through online

banking,including-

Viewing account balances

Viewing recent transactions

Downloading bank statements,for example in pdf format

Ordering check book

Download periodic account statements


Fund tranfer between the customer’s linked accounts

Paying third parties,including bill payments.

Register utility billers and make bill payments

So the objective of project is very much concentrating only on net bankig and its

uses by customer.HDFC bank have Net banking facility by which customer can

perform all the banking related task online from anywhere.

A Net banking Demo is given to every customer for engaging them more and

more on Net Banking.

The objective of project is fulfilled by conducting practical demo about Net

banking uses and conducting customer survey about their engagement in Net

banking. This survey conducted on 50 HDFC bank’s customers randomly chosen

from various branches of HDFC bank


INTRODUCTION


Background of study

Impact of Nonhuman banking chennanls like Net banking on customer

Engagement,with reference to HDFC Bank LTD.

Objectives

Primary objective – Impact of Netbanking on customer Engagement with bank

Secondary Objective – Impact of Netbanking on customer Retention with bank

Research Methodology

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.

In it we study the various steps that are generally adopted by a researcher in studying

his research problem along with the logic behind them. It is necessary for the

researcher to know not only the research methods/techniques but also the

methodology.

Here in this projet we used Conclusive research and Descriptive research.

Descriptive research: Studies are those studies which are concerned with

describing the characteristics of a particular individual, or of a group.


The main goal of this type of research is to describe the data and characteristics about

what is being studied. This often includes fact finding enquiries and surveys.

The major purpose of descriptive research is to describe characteristics of objects,

people, groups, organizations, or environments. In other words, descriptive research

tries to “paint a picture” of a given situation by addressing who, what, when, where,

and how questions.

Conclusive research: Conclusive research is structured and definite in orientation.

These studies are usually conducted to validate formulated hypotheses and specified

relationships. In contrast to Exploratory, these are more structured and definite. The

time frame of the study and respondent selection is more formal and representative.

Data source:

primary Data:-it is collected through questionnaire,dirct observation of customer

interview.

Secondary Data:-Data was collected from magazine websites and catalogues to

understand the product of the different players.

Sampling Method:

Sampling Units:-HDFC bank customer,

Sampling Size: 50 units

Sampling Technique:Rondom sampling,

Research design:Descriptive

Data Collection Tools :

The questionnaires consisted of

Muliple choice questions

Openended questions


Research Dsign:

A two stage Research eas conducted :condary Research

1.Secondary Research:

Data was collected from websites and catalogues to understand the product of the

different players

2.primary Research:

A primary Research was conducted :

The questionnaire was prepared for HDFC customers and following area was

covered:

Customer’s uses of Net banking.

Rating For different parametrs of Net Banking

Uses Digital banking channels

Net Banking Features

Engagement of customer in Net Banking

Sample salection: A size of 50 random samples of Questionnaire is taken from

various HDFC Branches of pune.Random sampling is use for Sampling

purpose.This project will help a lot to HDFC Bank to study the impact of

Netbanking in customer Engagement along with customer retention.


Company and product profile

HDFC Bank Limited is an Indian financial services company based in Mumbai,

Maharashtra. It was incorporated in 1994. HDFC Bank is the fifth largest bank in

India by assets. It is the largest bank in India by market capitalization as of 24

February 2014. As on Jan 2 2014, the market cap value of HDFC was around USD

26.88B, as compared to Credit Suisse Group with USD 47.63B. The bank was

promoted by the Housing Development Finance Corporation, a premier housing

finance company (set up in 1977) of India.

As of 31 March 2013, the bank had assets of INR 4.08 trillion.For the fiscal year

2012-13, the bank has reported net profit of INR 69 billion, up 31% from the

previous fiscal year. Its customer base stood at 28.7 million customers on 31 March

2013.

History

HDFC Bank Limited was incorporated in August 1994. It was promoted by Housing

Development Finance Corporation Limited (HDFC), India's largest housing finance

company. It was among the first companies to receive an 'in principle' approval from

the Reserve Bank of India (RBI) to set up a bank in the private sector.The Bank


started operations as a scheduled commercial bank in January 1995 under the RBI's

liberalization policies.

On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett,

Coleman & Co.) was merged with HDFC Bank Ltd. This was the first merger of two

private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank

for every 5.75 shares of Times Bank.

On 23 May 2008, HDFC Bank acquired Centurion Bank of Punjab taking its total

branches to more than 1,000. The amalgamated bank emerged with a base of about

Rs. 1,22,000 crore and net advances of about Rs. 89,000 crore. The balance sheet size

of the combined entity is more than Rs. 1,63,000 crore.

Capital structure

as on March 31, 2014 the authorized share capital of the Bank is Rs. 550 crore. The

paid-up capital as on the said date is Rs 479,81,00,870/- ( 2399050435 ) equity shares

of Rs. 2/- each). The HDFC Group holds 22.64 % of the Bank's equity and about

16.97 % of the equity is held by the ADS / GDR Depositories (in respect of the

bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)

Issues). 34.11 % of the equity is held by Foreign Institutional Investors (FIIs) and the

Bank has 4,22,314 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock

Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed

on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's

Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under

ISIN No US40415F2002

Operations


As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in

2,022 cities in India, and all branches of the bank are linked on an online real-time

basis.The Bank has overseas branch operations in Bahrain and Hong Kong.

HDFC Bank has two subsidiaries:

HDB Financial Services Limited (‘HDBFS’): HDBFS is engaged in retail asset

financing. It is a non-deposit taking non-bank finance company (NBFC). Apart from

lending to individuals, the company grants loans to micro, small and medium

business enterprises. It also runs call centers for collection services to the HDFC

Bank’s retail loan products. HDFC Bank holds 97.4% shares in HDBFS. As of March

31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-13, HDBFS

had turnover of INR 9.6 billion and profit after tax of INR 1 billion.[2] It has 6,404

employees as of 31 March 2013.

HDFC Securities Limited (‘HSL’): HSL is engaged in stock broking. As of March

31, 2013, HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1%

shareholding in HSL. During the FY 2012-13, HSL had turnover of INR 2.3 billion

and profit after tax of INR 668 million.[2] During the year, the Company received the

“Best e-Brokerage Award - 2012” in the Outlook Money Awards in the runner up

category.

Promoter

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

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain 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, strong

market reputation, large shareholder base and unique consumer franchise, HDFC was


ideally positioned to promote a bank in the Indian environment.

CBOP &time Bank amalgamation

The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of March 31, 2014, the Bank’s distribution network was at 3,403 branches in 2,171 cities.All branches are linked on an online real-time basis. Customers in over 1397 locations are also serviced through Telephone Banking. The Bank’s expansion plans take into account the need to have a presence in all major industrial and commercial centres, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active member base.

The Bank also has a network of 11,256ATMs across India. 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.

Management

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector.


The Managing Director, Mr. AdityaPuri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength

HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank’s branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

Listings and shareholding

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange, where it

is a constituent of the BSE SENSEX index,and the National Stock Exchange of

India,where it is a constituent of the CNX Nifty.Its American Depositary Shares are


listed on the NYSE.Its Global Depository Receipts (GDRs) are listed on the

Luxembourg Stock Exchange where 2 GDRs represent one underlying equity share

of HDFC Bank.

Shareholding: On 30 September 2013, the promoter group Housing Development

Finance Corporation held 22.72% of its equity shares. 33.61% of the shares were

owned by the Foreign Institutional Investors (FII). Around 428,000 individual public

shareholders own approx. 8.43% of its shares. The remaining 35.24% shares are

owned by others.

Promoter Group (HDFC)

23%

Foreign Insti-tutional In-vestors (FII)

34%

Individual shareholders

8%

Bodies Corporate8%

Insurance com-panies

5%

Mutual Funds/UTI4%

NRI/OCB/Others0%

Financial Institu-tions/Banks

0%

ADS/GDRs17%

Shareholding

Employees

As of 31 March 2013, the company has 69,065 employees, out of which 12,295 are

women (17.80%). In June 2013, the company reported an annual attrition rate of

approx. 20%. During the financial year 2012-13, the company incurred INR 42 billion

on employee benefit expenses.


CSR Activities

HDFC Bank has taken several initiatives as part of its corporate social responsibility.

It has collaborated with several NGOs to assist in its activities.

Initiative Objective Activities Facts/figures

Sustainable

Livelihood

Provide livelihood

finance to empower

rural people, especially

women at the bottom of

the pyramid

Training for

Occupation Skills

Credit Counseling

Financial Literacy

Market Linkages

Reached 20 lakh

households across

24 states

Financial

Literacy

Provide affordable

access to basic banking

products and services to

excluded and

underprivileged

sections of the society

Literacy programs in

schools

‘Power of Banking’

workshops.

600 government

schools across

Andhra Pradesh &

Odisha in literacy

programs3365

students across 6

locations covered in

workshops

Education Spread the importance

of education by

providing quality

education to children

Galli School Project

Grow with Books

Library programs

Engineering

scholarships

Child development

program

Family based care

programs

A large number of

students reached

through various

programs across

the country

Training Enhance employability courses More than


of youth and women in

the weaker sections of

the society by providing

training and capacity

development

Technical &

vocational training

Basic computer

programming

Educational support

for children

1500 youth

benefitted through

various programs

across the country

Community Enable economic

growth and sustainable

development through

community building

programs

CommunityRain

water harvesting

programs

Setting up blood

storage facilities

Construction of

sanitation facilities in

schools

Child Aid Foundation

150 tribal girls

benefitted through

sanitation project

350 poor and

needy children

supported

1600+ children

rescued.

Go Green Take responsibility for

the effects of the

operations of the Bank

on the environment and

the society. Promoting

paperless banking

Multi-channel delivery

(Internet, Mobile,

Phone, ATM)

Energy efficiency

Green infrastructure

Promoting paperless

banking

Multi-channel

delivery (Internet,

Mobile, Phone,

ATM)

Energy efficiency

Green infrastructure

As of Mar 2013,

82% of customer-

initiated retail

transactions direct

banking channels,

reducing the need

to commute

66 lakh retail

customers

subscribed for e-

statement

20 ATMs

operating on clean

energy


Awards and recognitions

2013

Awards Category

Outlook Money Awards 2013 Best Bank in Large Banks Category

[34][35]

IBA Innovation Awards Most Innovative Use of Technology

[35][36]

Dun & Bradstreet Polaris Financial

Technology Banking Award 2013

Best Private Sector Bank Technology

Adoption

Best Private Sector Bank Retail

Overall Best Private Sector Bank

Institutional Investor Best Bank in Asia

Mr. Aditya Puri Best CEO

Forbes Asia Fab 50 Companies List for the 7th year

Sunday Standard Best Banker Awards Best Private Sector Bank: Large

Mr. Aditya Puri: Top Achiever

Asia Money 2013 Best Domestic Bank in India


Mr. Aditya Puri Best Executive in India

MACCIA Awards 2013 Best in Financial Services: Bank

Category

UTI Mutual Fund CNBC TV 18

Financial Advisory Awards 2012

Best Performing Bank - Private [35][43]

Dun & Bradstreet Corporate Awards

2012

Best in Banking sector

NDTV Profit Business Leadership

Awards 2012

Winner in the banking category

NASSCOM CNBC–TV18 IT

Innovation Award

Best IT Driven Innovation in Banking

(COMMERCIAL)

The National Quality Excellence

Awards

Best Customer Service Result

FE Best Bank Awards Best Bank Best Bank New Private sector

Best in Strength & Soundness

Mr. Aditya Puri: Best Banker

Skoch Financial Inclusion Awards 2013 Organization of the Year

Guinness World Record For The Annual Blood Donation Drive

Controversies


Money laundering allegations

On 14 March 2013 an online magazine named Cobrapost.com released video footage

from Operation Red Spider showing high-ranking officials and some employees of

HDFC bank and two other leading banks, willing to turn black money into white, a

violation of Money Laundering Control Act.

Following the release of the footage, the Government of India and RBI ordered an

inquiry. The banks under question also conducted investigations of their own. HDFC

appointed Deloitte Touche Tohmatsu to conduct a forensic inquiry. The bank also

appointed Amarchand & Mangaldas & Suresh A Shroff & Co (AMSS), a law firm

based in India, to investigate in association with the internal departmental inquiry, the

breaches in the bank’s code of conduct and ethical standards by the officials

involved.[78] On March 16, 2013, HDFC released a statement announcing the

suspension of over 20 employees involved in the videotape to ensure fair and

unbiased investigation process.

The RBI forensic investigation did not reveal any prima facie evidence for the

allegations of money laundering. Deputy Governor at RBI, K.C. Chakrabarty, said in

an interview that no transactions had taken place. The Executive Director of HDFC,

Paresh Sukthankar, also confirmed that their investigations revealed the same on

April 24, 2013, “The issue is being reviewed and investigated from multiple quarters.

Clearly, all the investigations have shown that there have been no instances of

transactions actually taking place. Our belief is that the existing processes seem to

have worked in not allowing these transactions to happen.”


However, RBI investigations revealed violations of KYC (Know Your Customer)

norms, for which the three banks were imposed penalty, with Rs. 4.5 crores imposed

on HDFC.

Technology

HDFC bank operats in a highly automated environment in term of information

technology and communication systems.All the bank’s branches have online

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

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

branch Network and automated Teller Machines(ATMs).

Centrilized processing

Units

Derived Economic of Scale

Electronic Straight

Through processing

Reduced Transactions Cost

Data Warehousing ,CRM Improve cost efficiency,cross sell

Innovative technology Provide new or superior products

The Bank have made has made substantial efforts and invesments in acquiring the

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

bank.The Bank’s business is supported by scabable and robust systems which ensure

that our clients always get the finest serices we offer.

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

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

business.in each of its business,the bank has succeeded in leveraging its market


position,expertise and technology to creat a competitive advantage and build market

share.

Business Mix

HDFC Bank is a consistent player in the private sector bank and have a well

balanced product and business mix in the Indian as well overseas markets.

Customer segment (Retail & wholesale) account for 84% of Net

revenues(year)

Higher Retail revenues partly offset by higher operating and credit costs.

Equally well positioned to grow both segments.

Business strategy

HDFC BANK Mission is to be ‘a world class indian”,benchmarking themselves

against international standard and bst practices in terms of product

offering ,technology,service levels,risk management and audit & compliance.The

objective is to build sound customer franchises across distinct business so as to be a

preferred provider of banking services for target retail and wholesale customer

segment ,and to achieve a healthy grouth in profitability,consistent with the Bank’s

risk appetite.Bank is commited to do this while ensuring the highest levels of ethical

standard ,professional integrity ,corporate governance and regulatory

compliance.continue to develop new product and technology is the main business

strategy of the bank .


Human Resources

The bank’s staffing needs continued to increase during the year particularly in the

retail banking in line with the business growth. Total nubber of employees increased

from 21477 as of march 312077 to 69065 as of march 31,2013.the bank continues to

focus training its employeeson a continuing basis,both on the job and through training

programs conducted by internal and external faculty.the bank has consistently

believed that broader employee ownership of its shares has a positive impact on its

performance and employee motivation.The Bank’s employee stock option scheme so

far covers around 20000 employees.

Products-

HDFC Bank offers the following four core products:

1.Personal banking

Under Personal Banking, HDFC offers:

Accounts & Deposits

Loans

Cards

Demat

Investments

Insurance

Forex

Premium Banking

Forex

Premium Banking

Private Banking

2.NRI banking


Under NRI Banking, HDFC offers:

Accounts & Deposits

Money Transfer

Investments & Insurance

Research Reports

Payment Services

3.SME banking

Under SME Banking, HDFC offers:

Accounts & Deposits

Business Financing

Trade Services

Payments & Collections

Cards

4.Wholesale banking

HDFC offers Wholesale Banking for Corporates and Financial Institutions & Trusts.

The Bank also provides services such as Investment Banking and other services in the

Government sector.

Services

1.Wholesale banking services

HDFC Bank provides a range of commercial and transactional banking services,

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

management, etc. to large, small and mid-sized corporates and agriculture-based Balaji Institute Of Telecom & Management,pune (Maharashtra)

businesses in India. The bank is also a leading provider of these services to its

corporate customers, mutual funds, stock exchange members and banks.

2.Retail banking services

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

association with VISA (Visa Electron). The bank also issues the MasterCard Maestro

debit card. The Bank launched its credit card business in late 2001. By the end of

June 2013, it had a credit card base of 5.94 million. By March 2012, the bank had a

total card base (debit and credit cards) of over 19.7 million.The Bank is also one of

the leading players in the "merchant acquiring" business with over 240,000 point-of-

sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

The Bank is positioned in various net based B2C opportunities including a wide

range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

3.Treasury

The bank has three main product areas - Foreign Exchange and Derivatives, Local

Currency Money Market & Debt Securities, and Equities. These services are

provided through the bank's Treasury team. To comply with statutory reserve

requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market

risk on this investment portfolio.


Secondary

Research data


HDFC Bank offers you a comprehensive range of transactions across multiple

products through its NetBanking channel. So just log in to NetBanking and

conduct 135 + transactions from the comfort of your home or office.

You can check your Account Balance, book Fixed and Recurring Deposits,

Download A/c Statement up to 5 years, pay your Bills, Recharge your Mobile/ DTH

connection, and much more in a secure environment.

You can log in to NetBanking using your Customer ID and IPIN (password).

Experience Convenience ... Choose NetBanking!

Why use NetBanking?

Manage your account conveniently through the Internet.

135+ transactions available on NetBanking

Up-to-the-second details of your account

Access anytime, from anywhere

No queues to stand in, or turns to wait for

How Safe is NetBanking?

Our NetBanking service is secured with industry standard technology and

infrastructure

Know more

HDFC Bank has implemented an extra security solution for its customers - Secure

Access.

Secure Access is a simple three-step process that greatly enhances your online

security and allows you to transfer funds online.


Are you tired of heading down to a Bank branch? Of waiting in queues? Of not

knowing how to manage your account at your convenience? We have the answer!

NetBanking is an incredibly convenient and powerful tool, letting you do everything

you want with your accounts at the click of a mouse.

It is Real Time, giving you up-to-the-second details on your account.

All you need to do is Log in using your Customer ID and IPIN (NetBanking

password).

Your Customer ID is mentioned on your account statement/ account welcome letter/

chequebook. (Current account / HUF customers can obtain this from the branch).

You can re-generate your IPIN online in 3 easy steps.

Some of the transactions you can do through NetBanking are:

Check your account balances and download 5 year account statement in 5 formats,

instantly

Book Fixed Deposit / Recurring Deposit

Pay Utility Bills

View your Credit Card details and pay your Credit Card Bills

Recharge your Prepaid Mobile & DTH Connections

Invest in Mutual Funds Online

Book IRCTC Tickets online

Purchase a Gift Card

Pay your Taxes online

Update your PAN Details online

View your Tax Credit Satement (Form 26 AS)

Request for a Demand Draft/ Chequbook

Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card

View your Loan details

Apply for IPO

Request for Debit Card PIN Regeneration

Register for Third Party Transfer


Transfer funds between accounts within HDFC Bank and other Bank Accounts

These are just some of the 135+ transactions you can do through NetBanking.

HDFC Bank's NetBanking service is secure. Using industry-standard technologies

and infrastructures, our service gives you peace of mind.

HDFC Bank has implemented an extra security solution for its customers - Secure

Access

Secure Access is an additional layer of security that is essentially a solution

protecting your account from hackers and fraudsters. Secure Access requires a one-

time registration effort from your side.

All Third Party Transactions are covered under Secure Access

Let us take you through the steps involved in Secure Access and how it serves to

protect your account

HDFC Bank's NetBanking login is a two step process with Secure Access image and

text verification.

o Screen 1 is where you key-in your customer id

o Screen 2 is for your password

This is done as a security measure. On putting in your customer id, our backend will

verify if you are registered for Secure Access.

If you are not registered for Secure Access, the next screen will have a box to key-in

your password.

If, however, you are registered for Secure Access, you will be shown an image and

text that have been personalised by you during registration for Secure Access.


Analysis of questionnaires & Interpretation


Analysis of questionnaires & interpretation

The final Draft of the questionnaire was prepared on the basis of the observation

from the pilot study .These were then finally filled by 50 customer ,for the conclusive

study.

Finally the data collected was fed into data analysis software-SPSS and Excel,tobe

analyzed using statical techniques.

Types of Primary Data collected:

Socioeconomic Charateristics:

Socioeconomic Characteristics are sometimes called “states of being” in

that they represent the type of people.The factors on which we are working are

occupation. Monthly transaction is also an important parameter but it is

difficult to varify.Although the amount of money that business unit earns in a

month ia an absolute ,not a relative Quantity but it is a sensitive topic in our

society and it is difficult to determine.

Attitude/opinions:

Through the questionnaire we have tried to get hold of busines

preferences,inclination and requirement . Attitude is an importent notion in the

marketing literature,since it is generally thought that the attitude are related to the

behaviour of businessmen.

Motivation:

Through the questionnaire we have tried to find the hidden need or want of

businessmen and have tried to find if these people can be tapped as the

potential customer for HDFC Bank.

Behaviour concerns what subjects have done or are doing.through the

questionnaire we have tried to find ou t behaviour of the individual regarding the

product and their responses.if the responses are favorable then the person can be

said to be our potential customer. The primary data serves as an importent tool


to measur the behavioural trend of the customer.it helps in answering some of

the vital Questions.

Obtaining the primary Data:

The data collection was primarily done through communication.Communication

involves questioning respondents to secure the desired information ,using a data

collection instrument calld questionnaire ,the questions were in writing and so

were responses.

Versaility:

It is the ability of a technique to collect the information on the many types of

primary data of interest to marketers.it has been found that some of the peopledo

not answer tuthfully to all the questions especially in case of the personal details.

Data analysis and Interpretation


Q.1.Which type of Bank account do you have in HDFC bank.

(a) Current Account

(b) Saving Account

(c) salary Account

(d) Other account

casa Current a/c

Salary a/c sasa saving a/c

Total 8 7 17 5 23

2.5

7.5

12.5

17.5

22.5

Account types

No.

of

account

Interpretation:

According to the respondents to the study (38%) 23 out of 60 have

saving account ,(28% )17 have salary account followed by both

current and saving 8(13.3),and (11.6%) 7 out of 60 custome have

current account in HDFC Bank.

Q.2 Along with HDFC Bank in which other Bank do you have an account.


(a) ................................................................

(b) ................................................................

(c) ................................................................

(d) ................................................................

Total0

10

20

30

40

50

60

70

80

90 84

21

44

12

2 5

Sum of Total Sum of iciciSum of other bank Sum of sbiSum of kotak mahindra Sum of axis bank

Interpretation :

1.According to the respondent to the study 60 customer have 44 Banking Account in

other banks (excluding icici,sbi,axis and kotak mahindra Bank)

2. 60 HDFC bank account holder also have their bank accout in ICICI bank ,SBI ,kotak

mahidra and Axis Bank that is 21,12,2 and 5 respectively

3.Therefore 60 customers have total 84 account in other banks .


Q.3 For HDFC Bank Which Digital Banking channel you are using for carrying out

operations or Banking Activities.please Rank 1 to 4 according to your uses.

(a) Net banking

(b) SMS Banking

(c) Mobile Banking

(d) Telephone Banking

Total0

10

20

30

40

50

6051

25 25

7 6 3

15

2 1 2

Count of Net banking Count of SMS bankingCount of Mobile Banking Count of Tele.bankingCount of Net & SMS Banking Count of Net & MobileCount of Net & SMS &mobile Count of net ,mob& telCount of all Count of net & tele

Interpretation:

According to the respodents to the study 51 use Only net banking ,25 use Only SMS Banking and Momile banking,15 use three net,sms ,and moile banking,7 use telephone banking ,6 use Net & SMS Banking and 3 use Net & mobile Banking.


Q.4. Please Rate Following parameters For Above gien Banking Chennels.Rate From

1 to 4 ,1 is worst,4 is best.

Banking Channel

Parameter

NET

Banking

SMS Banking Mobile

Banking

Telephone

Banking

Safety

Convenience

Range of product

/services

Fees /charges

1.Rating for safety

Total0

50

100

150

200

250

Sum of Net banking 196

Sum of Mobile Banking 133

Sum of Tele.banking 84

Sum of SMS banking 129

Axis Title

Interpretation:

According to the respodents to the study total point given by 60 respondents to Net

banking with reference to SAFETY is highest that is 196 followed by mobile

banking,SMS Banking and lastly Telephon Banking that is lowest safe with 84

points.


2.Rating for convenience.

Total0

50

100

150

200

250





Conveneince Rating for Banking Channels

Axis Title

Interpretation:


banking with reference to CONVENIENCE is highest that is 200 followed by mobile

banking,SMS Banking and lastly Telephon Banking that is lowest convenient with 82

points.


3.Rating for Range of product/services

Total0

50

100

150

200

250





Range of product /services Rating

Axis Title

Interpretation:


banking with reference to RANGE OF RODUCT is highest that is 208 followed by

Mobile banking,SMS Banking and lastly Telephon Banking that is lowest with 84

points.


4.Rating for Fess /charges

Total0

50

100

150

200

250

300





Chart Title

Axis Title

Interpretation:


banking with reference to FEES /CHARGES is highest that is 239 followed by

Mobile banking, Telephon Banking and lastly SMS Banking that is lowest with 60

points.


Q.5.If you have other Bank Account then please Mention Banking Channels for that account.

Channel Other Bank

Net Banking SMS Banking Mobile Banking

Telephone Banking

ICICISBIAxis Bank Kotak Mahindraother

Total0

5

10

15

20

25

7

23

9

12 12

2 20

Sum of all Sum of OnlyNet bankingSum of Only Tele.banking Sum of Only Mobile BankingSum of OnlySMS banking Sum of Net & smsSum of net & mobile Sum of Net & tele

Uses of Digital banking Channels for Non HDFC Bank

Interpretation:

According to the respodents to the study 23 people respondent out of 60 also using

net banking for Their Non HDFC Bank account that maximan among all digital

banking channels.

12 respondent out of 60 using only telephone and 12 respondent using sms banking.

Only 2 respondent using both net banking and mobile banking.


Q.6.By Whom did you learn Net Banking Features of HDFC Bank.

(a) Banking Staff

(b) Friend

(c) yourself

(d) Relatives

Banking Staff40%

friend10%

Relatives7%

still not8%

yourself35%

Who learn you Net Banking ?

Interpretation:

According to the respodents to the study 40% respondent learned Net banking by

Bank Staff,

35% learned Net banking themself

10% learned by friend and 7% by their relatives

8% respondest still unaware of Net banking or they dont want to learn ot use net

Banking .


Q.7 Which Transactions do you do through Net Banking .

Give, 1 for More frequently Transaction,2 for less frequently Transactions and

zero for not used.

(a) Account Balance and statement

(b)Fund transfer

(c) Bill Payment

(d)Purchase new product

(e) Ticket Booking(movie,travelling)

1.Less frequiently

Total

32

60

25 192 2

Types of Transaction through Net Banking (Less Fre-

quiently)

Sum of A/c BaL.& statementCount of NameSum of fund transferSum of Bill paymentSum of purchase new productSum of ticket Booking (movie,travel)

Interpretation:

According to the respodents to the study 32 respondents using net banking for

checking A/c Bal.and statement less frequiently,followed by fundtranfer and bill

payment .Only 2 peoply Net banking for product purchase.


2.More frequiently.

Total0

10203040506070

13 15

60

18 16 16

Sum of A/c BaL.& statementSum of fund transferCount of NameSum of Bill paymentSum of purchase new productSum of ticket Booking (movie,travel)

Types of transactions Through Net Banking (more fre-quintly)

Interpretation:

According to the respodents to the study only 18 respondents using net banking for

Bill payment out of 60 more frequiently.

16 respondent using Net Banking for New product purchase and 16 for ticket booking

out of 60 more frequiently

15 respondent using Net banking for balance check or a/c statement.


Q.8 Did you Purchase a FD or RD by net Banking .please specify period.

FD =...............years

RD =..............years

Ambi

ka N

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Amit

Kumar

Chira

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sale

Dhira

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hans

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Divak

ar N

She

tty

G .vishn

uvar

dhan

a Re

ddy

Girish

N B

hosa

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Kunal

Distri

bute

r

Maz

dian

Ker

man

Paris

K ch

acha

d

Prad

eep Kul

Karni

R.K.G

HOtwal

Rajen

dra

Ramch

anda

ni

RamIt

Paga

ria

rosh

an p

andi

t

Sang

ana

H

Sanj

ay B

abam

Sant

osh

B.Raj

put

Shek

ar D

hum

al

sika

ndar

Swap

nil J

oshi

Ved K

umar

0123

1 1 1 1

3

1

3

1 12

1.3

Who purchased Product (RD /FD) through Net Banking ?

Total

Interpretation:

According to the respodents to the study Only 25 % (15 respondent out of 60)

purchased product(RD/FD) from Net Banking.

Conclusions and Recommendations


1.There is great scope in Online banking as it cost less to both customer and Bank.

2. 38% customer have saving account and 28% have salary account in HDFC Bank

but only 11% customer have current account ,so there is great scope for opening

Current accounts.

3. 60 customers(HDFC bank account holder) have total 84 account in other banks so

there is a need to recommend such customer to transfer their account to HDFC bank.

4. 85% customer using net banking that is a good figure but only 41% customer using

mobile Banking so there a scope to make customer use MOBile banking.

5. Among all digital Banking Net Banking is best with Reference parameters like

safety,Range of product /services,convenience and charges.

6.38% of hdfc customer also using Net Banking for their Non HDFC account that

maximan among all digital banking channels.

7. 40% customer of HDFC bank were given Net banking Demo by Banking

Staff .35% learned Net banking themself .10% learned by friend and 7% by their

relatives.8% respondest still unaware of Net banking or they dont want to learn ot use

net Banking

So there is a need to make them aware about internet banking and its all features.

8. Net Banking mainly use for checking account balance and satatement,bill

payment,fund transfer but less use for product (like RD /FD,insurance,credit card

purchase).

9. Only 25 % (15 respondent out of 60) purchased product(RD/FD) from Net

Banking.So HDFC Bank have scope to make people purchase product Online.

BibliographyBalaji Institute Of Telecom & Management,pune (Maharashtra)

Primary data:

Questionnaire

Supervisor and Project

Secondary

www.hdfc.com

o www.hdfcbank.com

o www.google.co.in

o www.wikipedia.org

o Research Methodology......................................By

M.V.Kulkarni

o Marketing Management.....................................By Philip Kotler


http://www.wikipedia.org/

http://www.google.co.in/

http://www.hdfcbank.com/

http://www.hdfc.com/

APPENDIX

Questionnaire


Dear Sir/Madam.

I am student of Balaji Institute of Telecom and Management, pune, conducting this survey, as a part of my project in HDFC Bank. The purpose of this activity is to study Impact of Non Human Banking channel like Net Banking on Customer Engagement.

A. Name: ..............................................................................(optional)

B. Age: 18-25 26-30 31-39 40-49 50-65 65+

C. Account opening year: ..........................................................................

D. Education till dat: High school UG PG PHD/OTHER

Q.1.Which type of Bank account do you have in HDFC bank.

(a) Current Account

(b) Saving Account

(c) Salary Account

(d) Other account

Q.2 Along with HDFC Bank in which other Bank do you have an account.

(a)................................................................

(b)................................................................

(c)................................................................

(d)................................................................

Q.3.For HDFC Bank Which Digital Banking channel you are using for carrying out operations or Banking Activities. Please Rank 1 to 4 according to your uses.(1 being avarage & 4 being exellent)

(a) Net banking

(b) SMS Banking

(c) Mobile Banking

(d) Telephone Banking


Q.4. Please Rate Following parameters For Above given Banking Channels .Rate From 1 to 4, 1 is worst, 4 is best.

Banking ChannelParameter

NET Banking

SMS Banking Mobile Banking

Telephone Banking

SafetyConvenience Range of product /servicesFees /charges

Q.5.If you have other Bank Account then please Mention Banking Channels for that account.

Channel Other Bank

Net Banking SMS Banking Mobile Banking

Telephone Banking

ICICISBIAxis Bank Co-operative BankOther

Q.6.By whom did you learn Net Banking Features of HDFC Bank.

(a) Banking Staff

(b) Friend

(c) Yourself

(d) Relatives

Q.7 Which Transactions do you do through Net Banking. Give, 1 for more frequently Transaction, and 2 for less frequently Transactions and zero for not used.

(a) Account Balance and statement (b) Fund transfer (c) Bill Payment(d) Purchase new product(e) Ticket Booking(movie, travelling)

Q.8 did you Purchase a FD or RD by net Banking .please specify period.

FD =...............years

RD =..............years

......Thanks for giving your valuable time........


hdfc Bank project

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