Rescued Document 12
-
Upload
kamal-kant-saini -
Category
Documents
-
view
218 -
download
0
Transcript of Rescued Document 12
-
8/4/2019 Rescued Document 12
1/42
A
PROJECT REPORT
ON
CHARACTER ETHICS AND BUSINESS VALUES
IN CONTEXT OF HDFC BANK
SUBMITTED BY:
KAMAL KANT SAINIENROLMENT NO : 04611301710
BBA II YR (3 rd SEMESTER)
In partial fulfillment of the requirementsFor the reward of the degree
OF
BACHELOR OF BUSSINESS ADMINISTRATION
Under the supervision of
MISS CHITRA KHARI
BERI INSTITUTE OF TECHNOLOGY, TRAINING ANDRESEARCH
TIKRI KALAN, DELHI
(Affiliated to Guru Gobind Singh Indraprastha university )
-
8/4/2019 Rescued Document 12
2/42
CERTIFICATE
Certificate that this project report titled character ethics and business values is the
bonfide work of Mr. Kamal Kant Saini who carried out the research under my
supervision. Certified further that to the best of my knowledge the work report here in
does not form part of any other project report or dissertation on the basis of which degree
or award was confirmed on an earlier occasion on this or any other candidate.
Miss. CHITRA KHARI
( )
-
8/4/2019 Rescued Document 12
3/42
PREFACE
Initial in the one module of the project, which is allotted to me, CHARACTER
ETHICS AND BUSINESS VALUES is covered in this project report.
The report contains very nice and well arranged topics related to the subject
CHARACTER ETHICS AND BUSINESS VALUES. The main contents of this project
describes that That what are ethics, Code of Ethics, Business Ethics and many other
topics which is countable in the CHARACTER ETHICS AND BUSINESS VALUES.
The project report also contains a description of Business Ethics which is very
important for an organization to work fairly in an environment.
Overall this reports my work like a guide for the subject CHARACTER ETHICS AND
BUSINESS VALUES.
-
8/4/2019 Rescued Document 12
4/42
ACKNOWLEDGEMENT
I would like to take this opportunity to sincerely thank Miss. Chitra khari for her valuablesupport, guidance and suggestion. Under his able to accomplish my project with
confidence. I would also like to thanks my friends and my siblings who directly or indirectly helped me in my project. I would also like to sincerely thank our Beri InstituteOf Technology Training And Research. Where, I spared my time to have access to wideinformation on internet.
DATE:
PLACE:
-
8/4/2019 Rescued Document 12
5/42
OBJECTIVE OF STUDY
The main objectives of the project were: To gain more information about values and character ethics
To know the importance of values in business.
To study and evaluate human conduct in the light of moral principles.
To collect information about the involvement of ethics in human activities
including business.
-
8/4/2019 Rescued Document 12
6/42
CONTENTSCERTIFICATE..(ii)
PREFACE...(iii)
ANCKNOWLEDGEMENT..(iv)
CHAPTER - 2
CONCEPTUAL DISCUSSION
CHAPTER 4
DATA ANALYSIS AND FINDINGS
CHAPTER-5
SUGGESTION AND CONCLUSIONS
BIBLIOGRAPHY
CHAPTER -1
INTRODUCTION
a.) INDUSTRIAL
REVIEW
b.) COMPANEY PROFILE
c.) SWOT ANALYSIS
d.) COMPETITOR
ANALYSIS
CHAPTER - 3
a.) RESEARCHMETHODOLOGY
-
8/4/2019 Rescued Document 12
7/42
INDUSTRIAL REVIEW
-
8/4/2019 Rescued Document 12
8/42
HDFC bank was among the few private banks to have started their operations in 1994
after the government of India allowed new private banks to emerge in Indian banking
sector. Housing development and Finance Corporation of India has been credited with
being one of the best financial bank in India with the track record of giving the best
financial advice to its customers and offering the best products and services in banking
area. Due to its impeccable service offered to the customer as per their demand and
convenience, HDFC bank has become one of the leading banks in India offering
customer service. In fact customers credit it for being one of the finest in customer
service leading to easy and convenient banking. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC has positioned itself as being the bank that cares for the customers.
HDFC Bank provides a variety of wholesale, retail, and depository financial services
through more than 1,400 branches and some 3,000 ATMs throughout India. Established
by the Housing Development Finance Corporation in 1994, the bank offers deposit
accounts, loans, credit cards, insurance, investments, and related services. HDFC Bank
targets individual customers in the middle and upper-class, as well as trusts, small
businesses.
COMPANY PROFILE
HDFC bank is a leading private sector bank and financial services company in India. The
bank aspires to be the preferred provider of financial services to upper- and middle-
-
8/4/2019 Rescued Document 12
9/42
income individuals and leading corporations in India. The strategy of the bank over the
years have been to provide a comprehensive range of financial products and services for
the customers through multiple distribution channels, with high quality service and
superior execution of the services offered. The bank principally deals into mainly three
business activities which can be categorized as: retail banking, wholesale banking and
treasury operations.
The bank has achieved tremendous growth since it started its operations in January 1995.
Over the last five years it has expanded operations from 231 branches and 732 ATMs in
122 cities to 1,412 branches and 2,890 ATMs in 527 cities in India as on December 31,
2008. Additionally the Bank has a branch in Bahrain and representative offices in the
U.A.E and Kenya. During the five years, banks customer base grew from 3.40 million
customers to over 17 million customers. As with time the HDFC bank expanded itsgeographical reach and market penetration, with this the banks assets also increased, and
it grew from Rs. 30,424 crore as of March 31, 2003 to Rs. 183,185 crore as of December
31, 2008. The net income also recorded an increase from Rs. 388 crore for the fiscal year
2003 to Rs. 1,590 crore for the fiscal year 2008 at a compounded annual growth rate of
32.60%.
Notwithstanding the pace of growth, the bank has maintained a strong balance sheet and
a low cost of funds. As of December 31, 2008 net non-performing assets constituted
0.6% of net advances. The average non-interest bearing current accounts and low-interest
savings accounts represented 51.70% of total deposits for fiscal 2008. These low-cost
deposits, which include the cash float associated with banks transactional services, led to
an average cost of funds including equity for fiscal 2008 of 4.10%.
HDFC bank is a part of the HDFC group of companies founded by our principal
shareholder, Housing Development Finance Corporation Limited (HDFC Limited),
which is a public limited company established under the laws of India. HDFC Limited
and its subsidiaries owned 19.38% of banks outstanding equity shares as of February 06,
2009.
The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial
Services
-
8/4/2019 Rescued Document 12
10/42
Limited (HDBFS). HSL is primarily in the business of providing brokerage services
through the internet and other channels. HDBFS is a non-deposit taking non-bank finance
company (NBFC), for the establishment of which the Bank received Reserve Bank of
India (RBI) approval during the fiscal year 2008.
HDFC bank is a commercial bank of India, promoted by the housing development
finance corporation, a premier housing finance company of India. The company
headquarters are situated in Mumbai and has around all the branches in 528 cities which
are all linked on an online real- time basis. HDFC bank is a type of public company and
was founded by Mr. Deepak Parekh. The bank has approximately total assets of INR
1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,
244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09.
The chairman of HDFC is Mr. Jagdish capoor and Mr. Aditya Puri serves as the company
managing director. They have been responsible for making the company peoples
company with their efforts. The company revenue in 2009 Rs. 197.5 billion and its profit
has been Rs. 2.24 billion. The company now has total assets of Rs. 1.8 trillion and has
52,687 employees currently working with HDFC. The bank has about 570,000
shareholders. The shares are listed on the Stock Exchange, Mumbai and the National
Stock Exchange. The bank's American Depository Shares are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB'.
Acquisitions and Mergers
In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted
by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000.
This was the first merger of two private banks in India. 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.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more
than 1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,
-
8/4/2019 Rescued Document 12
11/42
22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the
combined entity is over Rs. 1, 63,000 crore. 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. The mergers can be termed as a quest for growth
in the Indian banking environment.
Board committees
The Board has constituted committees of Directors to take informed decisions in the best
interest of the Bank. These committees monitor the activities falling within their terms of
reference. Various committees of the Board were reconstituted during the year due to
induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are
as follows: The Board's Committees are as follows:
Audit and Compliance Committee
Compensation Committee
Investors' Grievance (SHARE) Committee
Risk Monitoring Committee
Credit Approval Committee
The Premises Committee
Nomination Committee
Fraud Monitoring Committee
Compensation Committee
The Compensation Committee reviews the overall compensation structure and policies of
the Bank with a view to attract, retain and motivate employees, consider grant of stock
options to employees, reviewing compensation levels of the Bank's employees vis--vis
other banks and industry in general. The Bank's compensation policy is to provide a fair
and consistent basis for motivating and rewarding employees appropriately according to
their job / role size, performance, contribution, skill and competence. The Committee met3 (three) times during the year.
The Premises Committee
The Premises Committee approves purchases and leasing of premises for the use of
Bank's branches, back offices, ATMs and residence of executives in accordance with the
-
8/4/2019 Rescued Document 12
12/42
guidelines laid down by the Board. The Committee is chaired by Mrs. Renu Karnad. The
Committee met 4 (four) times during the year.
Fraud Monitoring Committee
Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud
Monitoring Committee, exclusively dedicated to the monitoring and following up of
cases of fraud amounting to Rs.1 crore and above. The objective of this Committee is the
effective detection of frauds and immediate reporting thereof to regulatory and
enforcement agencies and actions taken against the perpetrators of frauds.
Customer Service Committee
Committee monitors the quality of services rendered to the customers and also ensures
implementation of directives received from RBI in this regard. The terms of reference of
the Committee are to formulate comprehensive deposit policy incorporating the issues
arising out of death of a depositor for operations of his account, the product approval
process, and the annual survey of depositor satisfaction and the triennial audit of such
services. The Committee met 4 (four) times during the year.
Corporate governance
HDFC Bank recognizes the importance of good corporate governance, which is generally
accepted as a key factor in attaining fairness for all stakeholders and achieving
organizational efficiency. This Corporate Governance Policy, therefore, is established to
provide a direction and framework for managing and monitoring the bank in accordance
with the principles of good corporate governance.
Code of corporate governance
The Bank believes in adopting and adhering to best recognized corporate governance
practices and continuously benchmarking itself against each such practice. The Bank
understands and respects its fiduciary role and responsibility to shareholders and strives
hard to meet their expectations. The Bank believes that best board practices, transparentdisclosures and shareholder empowerment are necessary for creating shareholder value.
The Bank has infused the philosophy of corporate governance into all its activities. The
philosophy on corporate governance is an important tool for shareholder protection and
maximization of their long term values. The cardinal principles such as independence,
-
8/4/2019 Rescued Document 12
13/42
accountability, responsibility, transparency, fair and timely disclosures, credibility etc.
serve as the means for implementing the philosophy of corporate governance in letter and
spirit.
Progress
The Banks staffing needs continued to increase during the year particularly in the retail
banking businesses in line with the business growth. Total number of employees
increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank
continues to focus on training its employees on 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 Banks employee stock option scheme
so far covers around 9000 employees.
HDFC Bank has demonstrated very consistent delivery of performance over the last so
many years and has already notched up its place as the one of the largest private sector
bank in the country and the growth momentum is expected to continue. The bank has
stepped up to retail customer acquisition with deposit accounts increasing from 6.2
million to 8.7 million and total cards issued (debit and credit cards) increasing from 7
million to 9.2 million (approx). Not only the retail banking of HDFC is blooming day by
day but its services offered in wholesale banking has also given tremendous growth to the
bank. The online banking system i.e. net banking has been an eye attraction for the
customers as it gives them fast and convenient banking. As already mentioned about its
growing distribution network the bank is continually planning for expansion of the
branches of the bank. Customers are efficiently serviced through telephone banking also.
The Bank's expansion plans take into account the need to have a presence in all major
industrial and commercial centers where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
-
8/4/2019 Rescued Document 12
14/42
centers where the NSE/BSE has a strong and active member base. With the excellent
distribution network HDFC aspires to have as strong position in the market and with the
customers.
HDFC bank has always aspired to become a world class bank and has been trying toadopt an efficient and effective approach to understand the ever changing customer
demands and to offer them superior service. HDFC thus has been marketing itself with
the tagline saying we understand your world.
Now if one observes the revenue earned by HDFC during last year than it can be said that
revenue growth was driven principally by an increase in net income. The other income
(non interest revenue) increased primarily due to fees and commissions , profit/ (loss) on
revaluation / sale of investment and income from foreign exchange and derivates income.
Operating (non-interest) expenses increased due to higher infrastructure and staffing
expenses in relation to the expansion in the branch network, and growth in the retail loan
and credit card businesses.
net income69%
fee income18%
forex income9%
treasury and otheroperating income
4%
net revenue breakdown FY09
Figure- HDFC bank revenue breakdown
Awards and achievements
-
8/4/2019 Rescued Document 12
15/42
HDFC has earned several awards for its growth and progressive services offered to the
customers. A few are listed below:
Corporate best bank award Dun and Bradstreet American Express corporate
best bank award 2007 Best Bank Award in the private sector category- outlook money and NDTV profit
Best Retail Bank in India The Asian banker excellence in retail financial
services awards.
Euromoney Awards 2009 -'Best Bank in India'
Economic Times Brand Equity & Nielsen Research annual survey 2009 Most
Trusted Brand - Runner Up Asia Money 2009 Awards - 'Best Domestic Bank in India'
IBA Banking Technology Awards 2009-'Best IT Governance Award - Runner up'
Global Finance Award -'Best Trade Finance Bank in India for 2009
COMPETITIVE ANALYSIS
ICICI bank
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for
the year ended March 31, 2010. The Bank has a network of 2,009 branches and about
5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
-
8/4/2019 Rescued Document 12
16/42
established branches in Belgium and Germany. The bank has a presence in around 18
countries across the globe. They offer a wide gamut of retail products to its retail
customers and as well as other banking products related to the corporate segment. These
include ICICI personal loan, ICICI home loan, ICICI car loan, ICICI credit cards, ICICI
LAP etc. They also offer financial services that span asset management, venture capital,
investment banking, life and non-life insurance. ICICI equity shares find a place in the
Bombay Stock Exchange and National Stock Exchange in India with its American
depositary receipts listed in the New York Stock Exchange. ICICI Bank is one of the
most popular banks in recent times with its presence felt through a huge network of 1,495
branches and 4,816 ATMs across the country, with profits running into 8.8 billion in the
quarter ended June 2009. The bank also has a presence in around 18 countries across the
globe. They offer a wide gamut of retail products to its retail customers and as well asother banking products related to the corporate segment.
Milestones
In 1999, ICICI become the first Indian company and the first bank or financialinstitution from non-Japan Asia to be listed on the NYSE.
Merger of ICICI Bank with Bank of Madura Limited in fiscal 2001 and 2002.
In October 2001, ICICI Personal Financial Services and ICICI Capital Services
wholly owned by ICICI Limited were allowed to be merged with ICICI Bank,
which was formally approved by the RBI in April 2002.
K.V. Kamath is the Chairman of the ICICI group. Chanda D. Kochhar, the
Managing Director & CEO of ICICI Bank was recently named in Forbes list of the Worlds 100 Most Powerful Women and ranked in the top 20 of the list
compiled by Forbes, sharing the honor with Sonia Gandhi, Congress President
who ranked 13 th.
-
8/4/2019 Rescued Document 12
17/42
ICICI bank retail products
Accounts and deposits
Savings account
ICICI bank savings account offers the customers following features:-
Debit-cum-ATM Card
Money Multiplier Facility
Internet Banking
Customer Care
Mobile Banking
Standing Instructions Nomination facility
DD Call and Collect
Debit-cum-ATM Card - With ICICI Bank Savings Account the customers will get a
debit card that one can use to withdraw cash from any ATM. Customers may also use
their debit card to directly make purchases through a Visa/MasterCard POS (Point of Sale) machine available at most stores, according to the bank this will help customers
access their money from anywhere. The ICICI Bank International debit card is a debit-
cum-ATM card providing customers with the convenience of acceptance at merchant
establishments and cash withdrawals at ATMs. If the customers want to withdraw cash
from their ICICI Bank Savings account, they can walk into any bank's ATM and use their
ICICI Bank ATM-cum-Debit card for free. The above benefit is available free of cost for
the first 5 transaction per month upto Rs 10,000 per transaction.
Money Multiplier Facility- The Money Multiplier feature gives customer the liquidity of
a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by
creating a Fixed Deposit linked to customers Savings Account providing them the
following facilities.
-
8/4/2019 Rescued Document 12
18/42
Maximum returns According to the bank the customers money is never idle.
Creation of a linked FD ensures higher rate of interest on their Savings Bank
Deposits. One can issue instructions through any channel such as the ICICI Bank
Branch, ICICI Bank Phone Banking and ICICI Bank's Internet Banking for
creation of Fixed Deposit(s) from the surplus funds in your Savings Bank
Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be
created in multiples of Rs. 5,000 for tenure of one year or more as instructed by
the customer.
Maximum Liquidity The customers can withdraw the funds from their savings
account through any channel such as the ICICI Bank ATM, ICICI Bank Internet
Banking or by issuing a cheque etc. All linked Fixed Deposits will be enabled for
automatic Reverse Sweep in multiples of Rs. 5000 on a Last-In-First-Out (LIFO)
basis when the balance in the Savings Account falls below Rs.10, 000. The
amount reverse swept will earn interest rates at the applicable rate for the period
that the deposit was held with the Bank. The remaining amount will continue to
earn higher interest at the original rate applicable to the fixed deposit.
Auto Renewal - Under this facility, when their deposits fall due, the bank will
automatically renew the principal and accrued interest for the same tenure as theoriginal deposit .
Internet Banking -For internet banking the customers need to log in with their user ID
and password and make banking a hassle-free routine. It is offered free of cost.
Customer Care The bank has 24-hour Customer Care service always available to
answer any query or take their instructions.
Mobile Banking The customers have an option of mobile banking through which they
can do Transferring of funds or getting to know their balance.
Standing Instructions - ICICI Bank accepts and supports Standing Instructions.
According to them the customers don't have to worry about the chore of carrying out a
-
8/4/2019 Rescued Document 12
19/42
routine transaction. They can just set up a Standing Instruction and then the bank will
manage.
Nomination Facility The customers may nominate a person as beneficiary to their
account proceeds. Nomination facility available for bank deposits.
There can be only one Nominee for a deposit account whether held singly or
jointly.
A person legally empowered to operate a minor's account can file a nomination on
behalf of the minor.
Applicants can make nomination by filling up the Form prescribed under the
Banking Companies (Nomination) Rules 1985
The nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985.
DD Call and Collect according to the bank the customers need to wait in bank to
collect DD they can do so on the way to the branch, by just calling Customer Care and
providing them details of the DD to be prepared and collect it ready and signed at the
branch .
Salary accounts
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and
Employees. As an organization, one can opt for Salary Accounts to enable easy
disbursements of salaries and to have access to other benefits too. According to the bank
with ICICI Bank Salary Accounts employees will enjoy the convenience of having the
largest network of ATMs, free 24 hour phone banking and free internet banking. What
the customers would require to do is to send ICICI Bank an advice (in form of a
-
8/4/2019 Rescued Document 12
20/42
cheque/debit instruction, ecs, etc) for the total salary amount along with the salary details
of the designated employees in a soft and hard copy format and bank will credit the
respective employees' accounts as per the companys statement of advice.
ICICI Bank Salary Accounts has the benefits of reduce paper work and saves remittance
costs and also the employees receive instant credit of salaries. Besides all of the above,
employees will automatically become ICICI Bank account holders with special benefits
and privileges of 8-8 banking, Investment advisory and much more. ICICI Bank also has
a special offering: Defense Banking Services designed exclusively for the armed forces.
Fixed deposits
The ICICI bank fixed deposits offer following advantages:-
Wide range of tenures.
Choice of investment plans.
Partial withdrawal permitted.
Safe custody of fixed deposit receipts.
Auto renewal possible.
Loan facility available.
Features
The customers can deposit any amount of money in Fixed Deposit for as long as
they wish between 15 days to 10 years. All fixed deposits come with a set choice
of investment plans. Fixed Rate Deposit accounts also provide Fixed Loans. Re-
investment Fixed Deposit rates do not change but works like a Recurring Debit
Account transaction. In other words, Re-investment Plans are compounded over
traditional deposits and hence are more lucrative over different time periods.
Other features include:
Minimum Balance
-
8/4/2019 Rescued Document 12
21/42
Customers can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs
10,000.
Nomination
Nomination facility available for bank deposits.
There can be only one Nominee for a deposit account whether held singly or
jointly.
A person legally empowered to operate a minor's account can file a nomination on
behalf of the minor.
Applicants can make nomination by filling up the Form prescribed under the
Banking Companies (Nomination) Rules 1985.The nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985.
Choice of two investment plans:
Traditional
Interest payable monthly or quarterly as per your convenience
Maturity period ranges from 15 days to 10 years
Reinvestment
Interest is compounded quarterly and reinvested with principal amount
Maturity period ranges from 6 months to 10 years
Benefits
-
8/4/2019 Rescued Document 12
22/42
Fixed Deposits at ICICI Bank comes with nomination facility. The bank also offers
online access to Fixed Deposits through their Internet Banking channel. Internet Banking
at ICICI Bank allows customers to connect to their Credit Card, Loan and their Fixed
Deposit with their savings account. In re-investment deposits, the interest is compounded
quarterly and reinvested with the principal. Traditional term deposits provide tax shelter
and shield you from factors affecting fixed deposits in India over longer periods of fixed
time.
All the facilities available with ICICI bank can be listed as follows.
Channels
ICICI Bank has the following channels through which it offers its products and services
to its customers.
Branches
ATMs
Internet Banking
Mobile Banking
Phone Banking
Products and services
ICICI Bank offers a host of products and services to its clients, which include Deposits,
Loans, Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.
Deposits
Following deposits are offered:
Savings Account Advantage Deposit
-
8/4/2019 Rescued Document 12
23/42
Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank@Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account People's Savings Account Self Help Group Accounts Outward Remittance Freedom Savings Account Family Banking
Loans
ICICI Bank offers following loan facilities:
Home Loans Loan Against Property Personal Loans Car Loans
-
8/4/2019 Rescued Document 12
24/42
Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Loan Against Gold Ornaments Pre-approved Loans
Cards
ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The
various cards offered by ICICI bank are as below:
Consumer Cards
Credit Cards
Travel Cards
Debit Cards
Commercial Cards
Corporate Cards
Prepaid CardsPurchase Cards
Distribution Cards
Business Cards
Axis bank
Axis Bank, previously known as UTI Bank, is one of the leading Banks of India along
with HDFC Bank and ICICI Bank. Established in 1994, it's the first of the new privatesector banks in India to start its operations, when Government of India opened the gate
for the private banks to flock into the Indian financial market. Though the bank started its
operation with the name UTI Bank, but later, in order to avoid ambiguities and confusion
with other discrete entities carrying the same name, it changed its name to its current
-
8/4/2019 Rescued Document 12
25/42
form (Axis Bank) in April 2007. Axis Bank Limited recorded a total income of Rs.
13,745.04 crore as on the year ended March 31, 2009. It also made a net profit of Rs.
1,812.93 crore in the same financial year. Axis Bank offers a range of financial products
and services to its clients throughout the country. It also has special strength in retail and
corporate banking. Axis Bank offers following services:
Personal Banking Corporate Banking NRI Priority Banking
Personal banking
The Personal Banking of Axis Bank includes following services:
Accounts
Zero Balance Savings Account
Krishi Savings Account
Easy Access Savings Account
Prime Savings Account
Corporate Salary Account
Women's Savings Account
Demat Account
Senior Citizen's Account
Defence salary Account
Trust/NGO Savings Account
RFC(D) AccountAzzadi - No Frills
Pension Savings Account
Deposits
-
8/4/2019 Rescued Document 12
26/42
Fixed Deposits
Recurring Deposits
Encash 24
Tax Saver Fixed Deposit
Loans
Home Loan
Car Loan
Personal Loan
Loan Against Shares
Loan Against Property
Loan Against Security
Study Loan
Consumer Loan
Cards
Credit Cards
Debit CardsPrepaid Cards
Payments
Bill Pay
Electronic Clearing Service
Tax Payments
Tax e-Payments Direct Tax Payments
-
8/4/2019 Rescued Document 12
27/42
Pension Disbursement
Other Services
Mobile RefillLocker
Online Shopping
IPOS mart
E-Statement
Credit
Large Corporate
Working Capital Finance Term Loans Trade Services Structured Finance Supply Chain Management Overseas Transactions
Agri Business
Kisan Power Powertrac Commodity Power Contract Farming Arthia Power
SME Standard
SME Fast Track
Microfinance
-
8/4/2019 Rescued Document 12
28/42
Priority banking
Following services are offered under this category:
Accounts
Resident
NRI
Deposits
Fixed Deposits
Recurring Deposits
Encash 24
Loans
Home Loan
Personal Loan
Loan Against Property
Loan Against Security
Car loans
Consumer Power
Study Power
Cards
Priority Debit Card
Credit Cards
Platinum Credit Card Gold Plus Credit Card Gold Credit Card Silver Credit Card
-
8/4/2019 Rescued Document 12
29/42
Secured Credit Card eShop Card
Travel Currency Card
Remittance Card
Gift Card
Other Services
o Mobile Refill
o Locker
o Online Shopping
24 hour banking services
Following services are offered under 24 x 7 Banking:
Internet Banking
Mobile Banking
Savings Account NRI Account
Current Account
Phone Banking
Visa Money Transfer
Power Transfer
ATM
KOTAK MAHINDRA BANK
-
8/4/2019 Rescued Document 12
30/42
Kotak Mahindra is among the leading financial organization of India, with a range
of financial services that caters to all customers' day to day requirements. Their
products spans from commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking diverse needs of individuals and corporate are
catered to. The Kotak group has a net worth of more than Rs. 6,799 crore with the
branches, franchisees, representative offices and satellite offices spread across
cities and towns in India. They also have global offices in New York, London, San
Francisco, Dubai, Mauritius and Singapore. The Kotak Group offers their services
to approximately 6.4 million customers.
The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital
Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pintoand Kotak & Company. A stake in the group was taken in by industrialists Harish
Mahindra and Anand Mahindra and this is the time when the company changed its
name to Kotak Mahindra Finance Limited.
Kotak Group Products & Services
1. Bank
2. Credit Cards
3. Life Insurance
4. Mutual Funds
5. Car Finance
6. Securities
7. Institutional Equities
8. Investment Banking
9. International Business10. Kotak Private Equity
11. Kotak Realty Fund
12. Wealth Management
-
8/4/2019 Rescued Document 12
31/42
About Kotak Mahindra Bank
The flagship company of Kotak Mahindra Group, Kotak Mahindra Finance Ltd was
established in 1985. The same got converted into a bank - Kotak Mahindra Bank Ltd in
March 2003. Kotak Mahindra bank has presence in commercial vehicles, retail finance,
corporate banking, treasury and housing finance.
Services of Kotak Mahindra Bank
Deposit Accounts
Savings account Current Account Term Deposits
Loans
Personal Loans Home Loans Loan Against Property
Investment Services
Demat Mutual Fund Insurance Gold
-
8/4/2019 Rescued Document 12
32/42
Convenience Banking
Net Banking Mobile Banking Phone Banking ATM Network
PUNJAB NATIONAL BANK
The Punjab National Bank or PNB is one of the well known commercial and banking
institutions in India. It is the second largest government owned and regulated
commercial bank in the country and offers specialized solutions and financial services
in a number of sectors. Around 37 million customers are served by the bank on an
average basis. The customized facilities and services make it a trusted name in the
domain of banking.
Growth of Punjab National Bank
Punjab National Bank was registered under the Indian Companies Act on 19 May in the
year 1894 and its first office was set up at Anarkali Bazaar in Lahore. Since then, the
bank has become a great name in the field of banking and is very much preferred by the
customers for the wide range of its services. Today, the bank has around 4,904 branches
in around 764 cities. Due to its facilities and services of high standards, Punjab National
Bank has also been the recipient of a number of prestigious awards. It has been adjusted
as the 248th biggest bank across the globe according to a recent survey made by Bankers
Almanac in London. The Economic Times has also listed the bank as 38th among the
premier 500 companies and the 9th among the most trusted brands in India. The total
asset value of the bank amounts to around US$60 billion. There is also a subsidiary of the
-
8/4/2019 Rescued Document 12
33/42
PNB in the United Kingdom. In addition the bank also has branches in some other cities
like:
Kabul Honk Kong Oslo Shanghai Dubai
Services of Punjab National Bank
Punjab National Bank offers financial solutions and services in an array of sectors. All
these services that are offered keep pace with the changing market trends in order to
fulfill the needs and preferences of the customers. Some of the well known sectors on
which the main functions of the bank are based are:
Personal Banking Corporate Banking Agriculture finance services
Industrial finance services Trade financial services International banking services
PNB also has commercial relationship with more than 200 prestigious international banks
across the globe. It has the provisions of Rupee Drawing Arrangements with around 15
exchange companies in the UAE and 1 in Singapore. In case of the personal banking
segment, the bank offers customized solutions to take care of almost all financial needs of
the customers. Some of the well known services that are offered in the bank are:
Savings Fund Account Fixed Deposit scheme Current account Loan services
-
8/4/2019 Rescued Document 12
34/42
Punjab National Bank is also a well known name in housing loan benefits. The bank
offers both short term and long term loans. The rates are also affordable and can be paid
within a particular time. The housing loans are given for a number of purposes such as:
Construction of a building Purchase of a new house or a flat Purchase of flat or house on a First Power of Attorney basis For the purpose of repair or renovation of a house or a building
The PNB Housing Finance sanctions around 80% of the cost of the project. However,
the maximum amount is around Rs 50 lakh. The maximum loan amount for the
purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a
period between 5 and 20 years before one becomes 65 years of age. The interest of the
loan is based on the reducing balance and the principal amount of the loan is also
based on the repaying capability of the borrower.
Mutual funds of Punjab National Bank
The mutual funds of Punjab National Bank are covered under the Principal PNB Asset
Management Company. Some of the well known schemes of mutual funds are:
Principal Growth Scheme Principal balanced Fund Principal Income Fund Principal government Securities Fund Principal Income Fund Short Term Debt Principal Cash management Fund Principal Index Fund
Table showing analysis on different parameters:-
S.NO PARAMETE
RS
HDFC
BANK
ICICI
BANK
AXIS BANK KOTAK
MAHINDR
PUNJAB
AND
-
8/4/2019 Rescued Document 12
35/42
A
BANK
NATIONA
L
BANK 1. BRANCHES 1412
(INDIA)
141(DELHI
)
2009
(INDIA)
109
( Delhi)
1700+
(INDIA)
78(DELHI)
245
(INDIA)
66(DELHI)
3850(IND
A)
213(DELH
I)2. ATMs 5219
(INDIA)
4055
(INDIA)
117approx.
(INDIA)
3. CHEQUE
DEPOSIT
BOX
YES YES YES YES YES
4. EASY
INTERNET
BANKING
YES YES YES YES YES
5. AVERAGE
QUARTERLY
BALANCESAVINGS
ACCOUNTVALUE
ADDED
SAVINGS
REGULAR-
Rs.10,000
(URBAN
/METRO)
Rs. 5,000
(SEMI
URBAN)
SAVINGS
MAX
ACCOUNT
Rs. 25,000
Rs. 10,000
(URBAN
/METRO)
Rs. 5000
(SEMI
URBAN)
ZERO
BALANCE-
Rs.5,500
EASY
ACCESS-
Rs. 5,000 in
metro or urban
centers,
Rs. 2,500 in
semi urban
centers and Rs.
1,000 in rural
ACE:
Rs.50,000
PRO:
Rs.20,000
EDGE:
RS.10,000
PNB
PRIDENT
SWEEP-
Rs.10,000
(URBAN
/METRO)
Rs. 5,000
(SEMI
URBAN)
TOTAL
FREEDO
M
-
8/4/2019 Rescued Document 12
36/42
SENIOR
CITIZENS
Rs. 5000
NO
FRILLS-
NIL
KIDS
ADVANTA
GE
ACCOUNT
Rs. 5000
SUPER SAVINGS
ACCOUNT
Rs. 25000
centers.
PRIME
SAVINGS
ACCOUNT-
Rs 5,000 (urban
& metropolitan
branches) or Rs
2,500 (rural &
semi-urban
branches)
SAVINGS
FUND
SALARY
ACCOUN
T-
Rs. 0
6. RATE
APPLICABLE
ON SAVINGS
ACCOUNT
Saving A/c3.50% on
regular savingsaccount
Saving A/c3.50% and
interest paidHalf Yearly
3.50% andinterest paidQuarterly oneasy access
account
3.5% pa
3.50%
7. Gold debit card Yes yes yes Yes Yes8. Statement
charges
FreeQuarter
FreeQuarter
FreeQuarter
FreeQuarter
Free
monthly
9. 24 hour phone
banking
Yes yes yes Yes Yes
The following list of the fixed deposits that was created by interacting with the customers
as what they prefer most of the listed banks. The customers said that they are not aware
about the FDs of Kotak Mahindra bank and dont mind Punjab national bank as they trust
the bank with all of its products. The comparison is made on the basis of what customers
think was beneficial.
-
8/4/2019 Rescued Document 12
37/42
FIXED DEPOSITS
Account
name
Bank
Name
Type of
account
Rate Minimum
balance/deposits
Interest paid
FixedDeposit
ICICI
BANK
FIXED
DEPOSITS
9.5% Rs.10,000 QUARTERLY
Regular Fixed
Deposit
HDFC
BANK
FIXED
DEPOSITS
8.75% RS. 10,000 QUARTERLY
FixedDeposit
AXIS
BANK
FIXED
DEPOSITS
2.50% RS. 10,000 QUARTERLY
ANALYSIS
When discussed with customers regarding their preference for the various Private Banks
the analysis from that was that ICICI Bank and HDFC are the two leading private banks
of the city. This is mainly because. These two banks are the first private banks which has opened their branches in the
city.
ICICI and HDFC brands name, play an important part in their success in the city
because people usually go through the name the company.
The difference lies within the few parameters that seem to differ with in the banking
structure of different banks especially public sector bank i.e. Punjab national bank and
private sector banks i.e. HDFC, ICICI, AXIS and KOTAK MAHINRDA bank. If one
closely observes there is not major difference between the services offered in these banks
what differs is their banking culture and how they offer their services. The factors which
distinguish are-
Business process re-engineering
-
8/4/2019 Rescued Document 12
38/42
Proper and timely management of changes
Large number of transactions and changes
Internal commitment
Availability of adequate finance
Strategic Human Resources changes
PSU banks which are a dominating force in the Indian banking system have
lacked a proactive HR environment. However, much has changed with the
opening of other sectors and increased competition from newer banks in the
system. So Punjab national bank has undergone a drastic change with in time andhas been giving a serious competition to HDFC bank. There is a realization that
skill development is extremely important for staff retention as well as the quality
of manpower, and all banks whether HDFC or any other bank had in place a
system of continuous professional learning. A few banks like Kotak Mahindra
are time and again in the process of revamping their training processes and their
emphasis is being laid on hard as well as soft skills. Banks are keen to tie up with
external training agencies for in-house training. Now if one look at the retail
products offered at different banks then the savings account facility offered at
Punjab national bank finds more takers in the middle level earning group of
people like for example the total freedom savings account of PNB where there is
no need to maintain an average quarterly balance and even the fees that is
deducted for other accounts where the customers are not able to maintain average
balance is much less than HDFC, ICICI, AXIS and KOTAK MAHINDRA bank.
Kotak Mahindra bank seems to target customers of higher league as they dont
have many branches in Delhi as compared to HDFC, ICICI, and AXIS bank.
They have their own exclusive class of customers and they market their products
like that only. The current and savings account of Kotak Mahindra bank is
marketed with terms like the power to have an exclusive banking service. Now
HDFC bank has a very special way of treating its customers by giving them the
-
8/4/2019 Rescued Document 12
39/42
convenience of imperia customer programme, classic customer programme and
preferred customer programme. This helps the banks in attracting more and more
customers for the retail products. This is referred as priority banking. The plus
current account of HDFC bank is preferred more by the customers the minimum
balance required to be paid is RS. 1, 00,000 and the interest paid are nil. Punjab
national bank actually has been able to develop a more trustworthy relation with
the customers since its a public bank and does not charge much for not
maintaining AQB. HDFC bank has been a leader clearly among the private banks
and has its own strong and loyal customer base ICICI bank has been giving a
close competition to HDFC bank as told by the customers. After the customers
were contacted Bank FD emerges out to be the most preferred option for the
clients to invest in the market after real estate. This is also dependant on variousreasons which are given as under:
o Easy loans available against the Bank Fixed Deposits.
o Clients can withdraw their money at almost any time giving them the
option of maintaining Liquidity.
o With all this Bank FD also provides a decent return concerned the
minimum of the risk in any of the available investment instruments.
o We have seen above in the analysis of nationalized vs. private banks thatnationalized banks are the more preferred ones, this also adds weight to
clients preferring Bank FDs due to trust build during all these years.
Then, next preferred option for the clients is Unit link plan/Insurance . Another thing
that was noted were that majority of clients preferred the short term fixed deposits as
their favorite option. Most of the clients use the ideal money which they have to meet the
uncertainty or short term requirement. Now if we talk about insurances the preference of
the people who had invested in the insurance sector, it is very clear that LIC is the leading
company in this field, because of many factors such as:-.
-
8/4/2019 Rescued Document 12
40/42
LIC is leading in this field mainly, because it is the first mover in the insurance
sector and thereby had captured most of the market.
LIC had a very good network of agents, who can be seen as the back bone of the
company.
LIC had provided better service in the past which had made trust in the mind of
the people and for that reason they feel more comfortable.
HDFC and ICICI are the second in this field mainly because they had opened
their branches recently but have made progress in capturing a significant share of
the market and in the future the ratio is decrease, because there are many
opportunity to cash in by both the company .
The features that distinguish HDFC bank from other banks, according to the customers
are:-
1. The customers feel that services across different branches of the HDFC bank differs
since they have different branches for various departments for example Dwarka sector 22
which deals with visa services because of this the customer have an advantage of
convenience banking
2. Customers having long relationship with bank rely a lot on the investment services and
advices offered by the bank since bank through one or the other way try to give some
benefits to such customers, the bank named them as classic customers.
3. Customers call HDFC bank as friendly and reliable bank because of its CRM services
4. HDFC bank is also regarded as a leader in deploying technology in its services which
makes it different from other banks.
-
8/4/2019 Rescued Document 12
41/42
-
8/4/2019 Rescued Document 12
42/42
bank sometimes, and the other reason is that most of the time the sales staff does not give
what they promise, their information generally differs from the bankers in the bank this
create a bad impression about the company.
In the banking sector Punjab national bank is the bank many customers prefer -
PNB is the most preferred bank because of its brand equity and also because it has an old
and loyal customer which has proved to be a great advantage.. There are several things
which favor them including:
The companys image in the mind of the people
The companys successful track record in providing life long services to its
customers
A very good agent base
Excellent relationship with clients
A large Part of the Market yet to be covered by Mutual Funds-
Large parts of the people do not know about the mutual funds investment and insurance
and other retail products schemes but they have the power of Money. These clients
should be cash in by the HDFC bank.