A

Project Report

On

“A Study of Market Potential of Saving Account”

IN

HDFC BANK

Submitted to:

University of Pune, Pune

In partial fulfillment of the requirement for the award of
Post Graduate Degree in
Master of Marketing Management

Submitted by:
Mamraj Jangid

Under the guidance of:

Prof. NILESH GOKHALE

Submitted Through:-
Sinhgad Technical Education Society’s
Sinhgad Institute of Management
Vadgaon (BK), Pune

2009-2011
 DEDICATION

Dedicated to

My Beloved Family and Friends

Who has been the foundation of inspiration to me.

 DECLARATION

I, the undersigned, hereby declare that the project report entitled “A study of Market
Potential of Saving Account in HDFC BANK” written and submitted by me to the
University of Pune, in partial fulfillment of the requirement for the award of degree of
master of marketing management under the guidance of Prof. NILESH GOKHALE, is
my original work and the conclusions drawn therein are based on the material collected
by myself.

The source of material and data used in this study has been acknowledged.

I further declare that the information presented in this project is true and original
to the best of my knowledge.

Place: Pune MAMRAJ JANGID

Date: Course: MMM

 TOPIC PAGE
NO.
S.R. NO.

1. Executive Summary

2. Introduction 9

3. Organization Profile 12-29

4. Research Methodology 30-35

5. Data Analysis And Interpretation 36-44

6. Findings 45

7. Conclusion And Suggestions 46-47

8. Annexure 48
Sr. no. Table no. Description Page no.
1 1 37
Age of the respondent.

2 2 38
Marital status of the respondent.

3 3 39
Education qualification of the respondent.

4 4 40
Number of years of respondent staying in Udaipur.

5 5 41
Occupation of the respondent.

6 6 42
Annual household income of the respondent.

7 7 Perception of the respondent about different 43

products/services provided by HDFC bank.

8 8 Respondent opinion to open an account with HDFC bank. 44

9 9 Respondent have all the documents which are required to 45

open an account.

10 10 Respondent awareness about different terms and 46

conditions which are very much essential to maintain an
account at HDFC Bank.
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to Prof. M.N.Navale

founder president, Dr. (Mrs.) S.M.Navale, secretary, the Sinhgad Technical
Education Society, Pune, Dr. Daniel Panker, Director and Dr. Shivaji V. Gawade,
Head Research, The Sinhgad Institute of Management, Pune. For their continuous
encouragement, invaluable guidance and help for completing the present project
work. They have been a source of inspiration to me and I m indebted to them for
initiating me in the field of marketing.

I am completely indebted to Prof. NILESH GOKALE, my research guide, the

Sinhgad Institute of Management, Pune without his help completion of the project
was highly impossible.

I take this Opportunity as privilege to articulate my deep sense of gratefulness to

Mr. LALIT SHRIMALI, Manager, HDFC BANK for his help and positive
encouragement.

I wish to express a special thanks to all teaching and non-teaching staff members,
the Sinhgad Institute of Management, Pune for their forever support,
encouragement, valuable guidance are gratefully acknowledged. I would like to
acknowledge my Family members and friends for their support, love, help and
encouragement.

Place: Pune Mamraj Jangid

Date:
 Executive Summary

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

My training period was of two months which started on with my orientation and
introduction program with my mentor Mr. Lalit Shrimali, and other staff members
of the department, followed by allotment of my topic for SIP (summer Internship
Program) project which is “A Study of market potential of saving account in
HDFC Bank.”

As a part of my training my first task in the organization was to study about the
different products of the HDFC Bank and to prepare questionnaire. Followed by
this my next task was to visit people and collect information about their saving
account. This activity was done to identify the factors which impact on the saving
account in the bank and the action required to be taken to increase the sale.

In the following project I tried to get maximum understanding of marketing so that

it helps me in upgrading of personality.
 INTRODUCTION TO THE PROJECT

It gives me immense pleasure to present this entire project. The project emphasis on the
“A Study of Market Potential of saving account in HDFC bank.” The study is undertaken
at HDFC Bank, Udaipur [Raj.]

The project commences with the brief introduction of HDFC Bank. HDFC Bank is the
largest international banking group in India. The key business of HDFC Bank in India
include consumer banking-primarily credit cards, mortgages, personal loans and wealth
management and wholesale banking, where the bank specializes in the provision of cash
management, trade, finance, treasury and custody services. The Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in
1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

The project further relates to the market potential of the saving account of HDFC
bank. The savings account market is marked by heavy competition, with the major
players in the market being the private and the multinational banks. These banks have off
lately stated aggressive marketing of their products and provide a variety of features to
their customer.

The project describes about the customer’s perception about the different products of the
bank, how these products can attract them and how the company can generate maximum
profit by convincing.
 OBJECTIVE OF THE STUDY

1. To analysis the savings accounts potential in today’s scenario in Udaipur.

2. To analysis the market potential of saving account of HDFC bank in Udaipur.

3. To compare other bank with HDFC on various banking parameters.

4. To find out the various factors of saving account on which the bank leads

5. To suggest ways to increase its market share.

6. To open new savings accounts by convincing customers and to promote the benefits of
those which are provided by the Bank.
 Scope of the Project

The scope of the study is to know the strategies adopted by HDFC Bank in the past years
and what will be their future strategies. The project will also help to find out the branding
techniques and promotional activities adopted by the Bank. It will help to find out the
potential customers for the bank. The scope is to find out how the various products are
positioned in the market. The scope is to understand why HDFC Bank is different from
other banks, what are benefits that are provided to the people. This research will also serve
as a reference material for those researchers who are going to conduct studies in the related
field.

LIMITATIONS OF THE STUDY

The scope of study is limited due to the following reasons:
1) Time constraint - since the time span for the thesis is only two months so for
depth study and analysis will become a little difficult.

2) Sample size - the sample size of the study is only 200 which would not give a
Comprehensive result. Many important samples may not be considered at all. The
Conclusion of the study may not result to an accurate outcome due to the sample size
being small.

3) The Project is done only in Udaipur city so it is valid for this region only.

4) Inadequacy of sampling frame hence 100% probability sampling could not be

followed.

5) Probes were involved in collecting data from respondents. Hence there may be some

reliability issues.
 ORGANIZATION PROFILE

FORMATION OF THE COMPANY

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank
in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in
1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

 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, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

 BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
  CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is
Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about
17.6% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and 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'.

 TIMES BANK AMALGAMATION

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. 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. The acquisition added
significant value to HDFC Bank in terms of increased branch network, expanded geographic
reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage
alternative delivery channels.

 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1229 branches spread over 444 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
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 centers where the NSE/BSE has
a strong and active member base.

The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover,
HDFC Bank's 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. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was
a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, 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.

 TECHNOLOGY

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. The Bank's business is
supported by scalable and robust systems which ensure that our clients always get the finest
services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core 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.
  BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values - Operational Excellence, Customer Focus, Product Leadership
and People.

 RATING

I. Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research
Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme
has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered
to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's
Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for
repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary
of Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Bank's deposit programme, with the
outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated
by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated
Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the
Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /
Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating agency for
those instruments.
 II. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance
and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services
of India Limited (CRISIL). The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and corporate governance
practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates
that the bank's capability with respect to wealth creation for all its stakeholders while adopting
sound corporate governance practices is the highest.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises.

For individuals, the company has a range accounts, investment, and pension scheme, different
types of loans and cards that assist the customers. The customers can choose the suitable one
from a range of products which will suit their life-stage and needs.

For organizations the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans
apart from providing long term value to the employees help in enhancing goodwill of the
company.

The products of the company are categorized into various sections which are as follows:

 Accounts and deposits.

 Loans.
 Investments and Insurance.
 Forex and payment services.
 Cards.
 Customer center.
 PR
ODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING

A. Accounts & Deposits

- Regular Savings Account

- Savings plus Account

- Savings Max Account

- Senior Citizens Account

- No Frills Account

- Institutional Savings Account

- Payroll Salary Account

- Classic Salary Account

- Regular Salary Account

- Premium Salary Account

- Defence Salary Account

- Kid's Advantage Account

- Pension Saving Bank Account

- Family Savings Account

- Kisan No Frills Savings Account

- Kisan Club Savings Account

- Plus Current Account

- Trade Current Account

- Premium Current Account

- Regular Current Account

- Apex Current Account

- Max Current Account

- Reimbursement Current Account

- RFC - Domestic Account

- Regular Fixed Deposit

- Super Saver Account

- Sweep-in Account

- HDFC Bank Preferred

- Private Banking

B. Loans

- Personal Loans

- Home Loans

- Two Wheeler Loans

- New Car Loans

- Used Car Loans

- Overdraft against Car

- Express Loans

- Loan against Securities

- Loan against Property

- Commercial Vehicle Finance

- Working Capital Finance

- Construction Equipment Finance

- Offers & Deals

- Customer Center
C. Investments & Insurance

- Mutual Funds

- Insurance

- Bonds

- Financial Planning

- Knowledge Centre

- Equities & Derivatives

- Mudra Gold Bar

D. Forex Services

- Trade Finance

- Travelers’ Cheques

- Foreign Currency Cash

- Foreign Currency Drafts

- Foreign Currency Cheque Deposits

- Foreign Currency Remittances

- Cash To Master

- ForexPlus Card

E. Payment Services

- Net Safe

- Prepaid Refill

- Bill Pay

- Direct Pay

- Visa Money Transfer

F. Access Your Bank

- One View

- Insta Alerts

- Mobile Banking

- ATM

- Phone Banking

- Branch Network

G. Cards

- Silver Credit Card

- Gold Credit Card

- Woman's Gold Credit Card

- Platinum plus Credit Card

- Titanium Credit Card

- Value plus Credit Card

- Health plus Credit Card

- HDFC Bank Idea Silver Card

- HDFC Bank Idea Gold Card

- Compare Cards

- Transfer & Safe

- Track your Credit Card

H. Get More from Your Card

- Offers & Savings

- My Rewards

- Insta Wonders

- Add-On Cards

- Credit Card Usage Guide

- Easy EMI

- Net safe

- Smart Pay

- Secure Plus

- My City Benefit Card

- Debit Cards

- Easy Shop International Debit Card

- Easy Shop Gold Debit Card

- Easy Shop International Business Debit Card

- Easy Shop Woman's Advantage Debit Card

- Prepaid Cards

- Forex Plus Card

- Kisan Card

I. Customer Centre

- Offers & Deals

- Winners of Contests & Promotions

2. Wholesale Banking

A. Corporate

Funded Services

Non Funded Services

Value Added Services

Internet Banking

B. Small & Medium Enterprises

Funded Services

Non-Funded Services

Specialized Services

Internet Banking

C. Financial Institutions & Trusts

Banks

Financial Institutions

Mutual Funds

Stock Brokers
 MI
LESTONES IN THE HISTORY

HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, they are proud to say that they are well on our way towards that
goal.

It is extremely gratifying that their efforts towards providing customer convenience have been
appreciated both nationally and internationally.

 2007

Business Today-Monitor Group survey One of India's "Most Innovative

Companies".
Financial Express-Ernst & Young Award Best Bank Award in the Private Sector
category.
Global HR Excellence Awards - Asia ‘Employer Brand of the Year 2007-
Pacific HRM Congress: 2008’-Award- First Runner-up.
Business Today ‘Best Bank Award’.
Dun & Bradstreet – American Express ‘Corporate Best Bank’-Award.
Corporate Best Bank Award 2007
The Bombay Stock Exchange and Nasscom ‘Best Corporate Social Responsibility
Foundation's Business for Social Practice’ Award.
Responsibility Awards 2007
Outlook Money & NDTV Profit Best Bank Award in the Private sector
category.
The Asian Banker Excellence in Retail Best Retail Bank in India.
Financial Services Awards
Asian Banker Managing Director Aditya Puri won the
Leadership achievement Award for
India.

 2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50 companies.
Business world Best listed Bank of India.
The Asset Magazine's Triple A Country Best Domestic Bank.
Awards
Asiamoney Awards Best Local Cash Management Bank in
Large and Medium segments.
Euromoney Awards "Best Bank" in India.
 2005

Asiamoney Awards Best Domestic Commercial Bank

Asiamoney Awards Best Cash Management Bank - India .
The Asian Banker Excellence Retail Banking Risk Management
Award in India.
Hong Kong-based Finance Asia magazine Best Bank in India
Economic Times Awards "Company of the Year" Award for
Corporate Excellence.
The Asset Triple A Country Awards Best Domestic Bank in India Region –
2005
The Business Today-KPMG Survey Best Local Cash Management Bank in
India US$11-100m – 2005
The Business Today-KPMG Survey "Best Bank in India" for the third
consecutive year in 2005.
Economic Times - Avaya Global Connect "Most Customer Responsive Company -
Customer Responsiveness Awards Banking and Financial Services – 2005

 2004

Asiamoney Awards Best Local Cash Management Bank in

India US$11-100m
Asiamoney Awards Best Local Cash Management Bank in
India >US$501m
Asiamoney Awards Best Local Cash Management Bank in
India 1989-2004 (poll of polls)
Asiamoney Awards Best Overall Domestic Trade Finance
Services in India – 2004
Asiamoney Awards Most Improved company for Best
Management Practices in India – 2004
Business World One of India's Most Respected
Companies – 2004
Forbes Global Best Under a Billion, 100 Best Smaller
Size Enterprises in Asia/Pacific and
Europe – 2004
Asian Banker Awards Operational Excellence in Retail
Financial Services – 2004
The Asset Triple A Country Awards Best Domestic Bank in India – 2004
 2003

Forbes Global Best Under a Billion, 200 Best Small

Companies – 2003
The Asset Triple A Country Awards Best Domestic Bank in India -2003
BusinessWorld - The Business World Most One of India's Most Respected
Respected Company Awards Companies
The Asset magazine Best Cash Management Bank
The Asset magazine Best Trade Finance Bank
FE-Ernst & Young Best Banks Survey Best New Private Sector Bank – 2003
Outlook Money Best Bank in the Private Sector – 2003
Business Today Best Bank in India -2003
NASSCOM & economictimes.com - IT Best IT User in Banking -2003
Users Awards

 2002

Hong Kong-based Finance Asia magazine Best Local Bank – India

Hong Kong-based Finance Asia magazine "Best Local Bank - India"
Euromoney magazine "Best Bank in India
Asiamoney magazine Commercial Bank in India 2002

 2001

Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank – India
Hong Kong-based Finance Asia magazine "Best Domestic Commercial Bank –
India
Euromoney magazine "Best Bank in India
Forbes Global Named in The 300 Best Small
Companies one of the "20 for 2001" best
FE-E&Y Best Banks small companies
The Economic Times Awards for Corporate Excellence as the
Emerging Company of the Year

 2000

Hong Kong-based Finance Asia magazine
Hong Kong-based Finance Asia magazine
Euromoney magazine
Business India
Best Domestic Commercial Bank – India
"Best Domestic Commercial Bank –
India
Best Domestic Bank
" India 's Best Bank"
 Forbes Global Named in The 300 Best Small
Companies one of the "20 for 2001" best
FE-E&Y Best Banks small companies

MERGER

HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29

The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion
Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange
ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab.

The combined entity would have a nationwide network of 1,148 branches (the largest amongst
private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of
around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500
billion.

Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, “We were
amongst the first to get a banking license, the first to do a merger in the private sector with Times
Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector
banking space in India. HDFC Bank was looking for an appropriate merger opportunity that
would add scale, geography and experienced staff to its franchise. This opportunity arose and we
thought it is an attractive route to supplement HDFC Bank’s organic growth. We believe that
Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach
to business.”

Mr. Aditya Puri, Managing Director, HDFC Bank said, “These are exciting times for the
Indian banking industry. The proposed merger will position the combined entity to significantly
exploit opportunities in a market globally recognized as one of the fastest growing. I’m
particularly bullish about the potential of business synergies and cultural fit between the two
organizations. The combined entity will be an even greater force in the market.”

Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, “Over the last few years,
Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nationwide
network, an extremely valuable franchise, 7,500 talented employees, and strong leadership
positions in the market place. I believe that the merger with HDFC Bank will create a world class
bank in quality and scale and will set the stage to compete with banks both locally as well on a
global level.”

Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said,
“We are extremely pleased to receive the go ahead from our board to pursue this opportunity. A
merger between the banks provides significant synergies to the combined entity. The proposed
merger would further improve the franchise and customer proposition offered by the individual
banks.”

FINANCIAL FIGURE

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008

Particulars Quarter Quarter Year

ended ended ended
30.06.08 30.06.07 31.03.08
Unaudited Unaudited Audited
1 Interest Earned (a)+(b)+(c)+(d) 362173 206916 1011500
a) Interest/discount on advances/bills 263638 145362 696673
b) Income on Investments 95121 56047 287204
c) Interest on balances with Reserve
Bank of India and other interbank funds 2426 5337 27239
d) Others 988 170 384

2 Other Income 59342 57254 228315

3 A) TOTAL INCOME (1) + (2) 421515 264170 1239815

4 Interest Expended 189826 108364 488712
5 Operating Expenses (i) + (ii) 128938 77438 374562
i) Employees cost 54058 28388 130135
ii) Other operating expenses 74880 49050 244427

6 B) TOTAL EXPENDITURE (4)+(5) 318764 185802 863274

(excluding Provisions & Contingencies)

7 Operating Profit before Provisions and 102751 78368 376541

Contingencies (3) -(6)

8 Provisions (Other than tax) and 34447 30712 148478

Contingencies
9 - - -
Exceptional Items
10 68304 47656 228063
Profit / (Loss) from ordinary activities
 before tax (7-8-9)
11 21869 15533 69045
Tax Expense
12 46435 32123 159018
Net Profit / (Loss) from Ordinary
Activities after tax (10-11)
13 - - -
Extraordinary items (net of tax expense)
14 46435 32123 159018
Net Profit / (Loss) (12-13)
15 42462 33319 35443
Paid up equity share capital (Face Value of
Rs.10/- each)
16 - - 1114280
Reserves excluding revaluation reserves
17 (as per balance sheet of previous
accounting year) NIL NIL NIL
Analytical Ratios 12.2% 13.1% 13.6%
(i) Percentage of shares held by
Government of India
(ii) Capital Adequacy Ratio 11.0 1 0.0 4 6.2
(iii) Earnings per share (Rs.)
(a) Basic EPS before & after extraordinary 10.8 1 0.0 4 5.6
items (net of tax expense) –not annualized
(b) Diluted EPS before & after
extraordinary items (net of tax expense) 150274 71016 90697
-not annualized 49607 21424 29852
(iv) NPA Ratios 1.5% 1.3% 1.3%
(a) Gross NPA 0.5% 0.4% 0.5%
(b) Net NPA 0.3% 0.3% 1.3%
18 (c) % of Gross NPA to Gross Advances
(d) % of Net NPA to Net Advances 342173776 250744008 27198992
(v) Return on assets (average) - not 80.6% 75.3% 0
annualized 76.7%
Public Shareholding
- No. of shares
- Percentage of Shareholding
QUALITY POLICY

 SECURITY: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products. 
 TRUST: The bank appreciates the trust placed by their policy holders in the bank.
Hence, it will aim to manage their investments very carefully and live up to this trust. 
 INNOVATION: Recognizing the different needs of our customers, the bank offers a
range of innovative products to meet these needs. 
 INTEGRITY
 CUSTOMER CENTRIC
 PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”
 TEAM WORK
 JOY AND SIMPLICITY
 RESEARCH METHODOLOGY

A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives determined
for carrying out the research study. 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. Researchers not only need to know how to develop certain indices or
tests, how to calculate the mean, the mode, the median or the standard deviation or chi-
square, how to apply particular research techniques, but they also need to know which of
these methods these methods or techniques, are relevant and which are not, and what
would they mean and indicate and why.
 Sampling methods

Before an organization conducts primary research it has to be clear which respondents it wishes
to interview. A company cannot possibly interview the whole population to get their opinions
and views. This simply would be to costly and unfeasible. A sample of the population is taken to
help them conduct this research. To select this sample there are again different methods of
choosing your respondents, a mathematical approach called 'probability sampling' and a non-
mathematical approach, simply called 'non-probability sampling'. Lets look at these in a little
more detail.

Probability Sampling Methods – A mathematical chance of selecting

the respondent.

Simple Random Samples

With this method of sampling the potential people you want to interview are listed e.g. a group
of 100 are listed and a group of 20 may be selected from this list at random. The selection may
be done by computer.

Systematic samples
Out of the 100 people we talked about above, systematic sampling suggests that if we select the
5th person from the above list, then we would select every 5th, 10th, 15th, 20th etc. The pattern
is the every consecutive 5th. If the 6th person was selected then it would be every consecutive
6th.

Multi-Stage Samples
With this sampling process the respondents are chosen through a process of defined stages. For
example residents within Islington (London) may have been chosen for a survey through the
following process:
Throughout the UK the south east may have been selected at random, ( stage 1), within the UK
London is selected again at random (stage 2), Islington is selected as the borough (stage 3), then
polling districts from Islington (stage 4) and then individuals from the electoral register (stage 5).

As demonstrated five stages were gone through before the final selection of respondents were
selected from the electoral register.

Non Probability Samples

Convenience Sampling
Where the researcher questions anyone who is available. This method is quick and cheap.
However we do not know how representative the sample is and how reliable the result.

Quota Sampling
Using this method the sample audience is made up of potential purchasers of your product. For
example if you feel that your typical customers will be male between 18-23, female between 26-
30, then some of the respondents you interview should be made up of this group, i.e. a quota is
given.

Dimensional Sampling
An extension to quota sampling. The researcher takes into account several characteristics e.g.
gender, age income, residence education and ensures there is at least one person in the study that
represents that population. E.g. out of 10 people you may want to make sure that 2 people are
within a certain gender, two a certain age group who have an income rate between £25000 and
£30000, this will again ensure the accuracy of the sample frame again.

To summaries there are two types of sampling frames - probability and non-probability, and
within these six types of sampling methods as discussed above.
Sampling is that part of statistical practice concerned with the selection
of an unbiased or random subset of individual observations within a
population of individuals intended to yield some knowledge about the
population of concern, especially for the purposes of making predictions
based on statistical inference. Sampling is an important aspect of data
collection.

Researchers rarely survey the entire population for two reasons (Adèr,
Mellenbergh, & Hand, 2008): the cost is too high, and the population is
dynamic in that the individuals making up the population may change
over time. The three main advantages of sampling are that the cost is
lower, data collection is faster, and since the data set is smaller it is
possible to ensure homogeneity and to improve the accuracy and quality
of the data.

Each observation measures one or more properties (such as weight,

location, color) of observable bodies distinguished as independent
objects or individuals. In survey sampling, survey weights can be
applied to the data to adjust for the sample design. Results from
probability theory and statistical theory are employed to guide practice.
In business and medical research, sampling is widely used for gathering
information about a population.
 RESEARCH DESIGN

 Formulation of objectives of the study.

 Designing methods for the data collection

 Select the sample size

 Collecting the data

 Processing and analysis of data

 Reporting the finding.

The research methodology used in this project is described below in detail:

Research Plan: The research plan used is convenience research plan.

Convenience Research is that kind of research which is carried out according to the
convenience of the researcher. The research depends on the area and the convenience of
the researcher carrying out the research.

Convenience sampling is a non probability sampling technique where subjects are

selected because of convenient accessibility and proximity to the researcher.

In convenient sampling subjects are selected because they are easiest to recruit for the
study. Subjects are representative of the entire population.

Designing a research plan calls for decisions on the following:

 Data Collection

 Research instruments

 Sampling plan

 Contact methods

Data Collection: A study is based on the information that is embedded in it. The data for
this study is obtained from both primary data and secondary data.

Primary Data: Primary data is collected for the research needs at hand and a formal and
structures questionnaire has been prepared and is presented and filled from the concerned
respondents.
Secondary Data: It has been gathered from the internet, books, company literature and
company’s past records etc. which has been tabulated and presented in the report.

Research Instrument: The main research instrument used in collecting the primary data
is the Questionnaire, a copy of which is attached in the annexure.

Sampling Design: Convenience sampling is used as the sampling plan.

Sampling Technique: I have used both Probability and Non Probability Techniques.

Sample Size: 50 respondents.

DATA ANALYSIS, INTERPRETATION AND

PRESENTATION

Data interpretation can be defined as applying statistical procedures

to analyze specific facts from a study or body of research. Data
interpretation questions are a part of many standardized tests. Data
interpretation is sometimes also called data analysis.
1. Age of the respondent.

TABLE no. 1

Serial No. Age Category Number of Respondents Percentage

1. Under 25 14 28%
2. 25-50 Years 33 66%
3. 50-75 Years 3 6%
4. 75 above 0 0
Total 50 100%
Base 50 respondents

GRAPH no. 1

Number of Respondents
Under 25 25-50 Years 50-75 Years

6%

28%

66%
Interpretation

From the table and graph above it can be seen that

 28% respondent’s age are under 25 years.

 66% respondent’s age are 25 to 50 years.
 6% respondent’s age are 50 to 75 years.

2. Occupation of the Respondent.

TABLE no.2

Occupation Business Service Others

No. of respondent 18 24 8

Percentage 36 48 16

Base 50 respondents

GRAPH no.2

No. of respondent
Business Service Others

16%

36%

48%
 Interpretation

From the table and graph above it can be seen that

 48% respondent’s occupation is service.

 36% respondent’s occupation is Business.

3. Annual Income of the Respondent.

Table no. 3

Income Below-5000 5000-10000 10000-15000 15000-20000 Above 20000

No. of respondent 5 7 8 8 22

Percentage 10 14 16 16 44

Base 50 respondent

Graph no.3

No. of respondent
Below-5000 5000-10000 10000-15000 15000-20000 Above 20000
10% 14%

44%

16%
16%

Interpretation.
  The highest number of respondent that is 22(44%) is from the income group of above 20000

4. Respondents’ saving account in different banks.

Table no.4

Banks ICICI SC HDFC ABN AMBRO Others

NO. of respondent 15 O 8 2 25

Percentage 30 0 16 4 50

Base 50 respondent

Graph no.4

NO. of respondent
ICICI SC HDFC
ABN AMBRO Others
30%

50%

16%

4%

Interpretation

 16% of the respondents have their saving account in HDFC bank.

  30% of the respondents have their saving account in ICICI bank.
 50% of the respondents have their saving account in other banks.

5. Factors for Opening a saving account in bank by the respondent.

Table no. 5

Factors Interest rate Goodwill Facilities Others

Percentage 40 20 30 10
Base 50 respondent

Graph no.5

Percentage
Percentage
40

30

20

10

Intrest rate Goodwill Facilities Others

Interpretation

 40% of the respondent chooses Interest rate as a factor for opening saving account.
  30% of the respondent chooses Facilities as a factor for opening saving account.
 20% of the respondent chooses goodwill as a factor for opening saving account.

6. Preferred method by the respondent for banking transaction.

Table no.6

Preferred method Over the counter ATM Internet Doorstep banking

No. of respondent 11 18 14 7
Percentage 22 36 28 14
Base 50 respondent

Graph no.6

No. of respondent
Over the counter ATM Internet Doorstep banking
14% 22%

28%

36%

Interpretation

 36% of the respondent feels ATMs are the most preferable method of banking transaction.
  28% of the feels internet is the most preferable method of banking transaction.

7. Respondents satisfaction level towards banking service.

Table no.7

Satisfied Yes No
No. of respondent 31 19
Percentage 62 38
Base 50 respondent

Graph no.7

No. of respondent
Yes No

38%

62%

Interpretation

 62% of the respondent feels highly satisfied towards the services they availed.
 38% of the respondents are not satisfied towards the services they availed.
8. Changes that respondent wants towards banking service.

Changes Customer Multibranch & Extra futures for Others

relation multicity banking debit & credit cards

No. of 19 4 17 10
respondents

Percentage 38 8 34 20

Table no. 8

Base 50 respondent

Graph no. 8
 No. of respondents
Customer relation Multibranch & multicity banking
Extra futures for debit & credit cards Others
20%
38%

34% 8%

Interpretation

 38% of the respondent want changes in customer relation.

 34% of the respondent want extra facilities realted to debit and credit card.

FINDINGS
 Only 16% of the respondent contributes to the market share of HDFC Bank.

 ICICI is most preferred bank among all age group and among all
occupational and income profile.

 50% of the respondent finds services and facilities of the bank as the most
preferable factor for opening an account.
  Majority of the respondent that is 36% feels ATM’s are the most preferable
method of banking transaction.

 38% of the respondent wants changes in customer relation.

CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS:

HDFC Bank, the banking arm of HDFC is expected to go on stream. The important facts
which we could conclude from our data regarding the buying behavior of individual are
that people give maximum importance to quality of service and convince which going in
for a saving account. The minimum balance to be maintain in the account is not of much
importance to the individuals as initially thought to be; in fact people give little
importance to this attribute while opening a saving account. Also the brand name of the
bank is of little consideration and in fact quality of service is what is considered to be the
single most important factor while opening a saving account.

Regarding the acceptance of HDFC Bank our data shows that though the Bank is
considered to be an elite bank by the customers but the general perception among the
customer is as such as that it is an expensive and profit oriented bank and doesn’t give
much importance to the customer benefits.

The project opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to open an account so
that new Business Opportunities of the bank can be explored. Through this project, it
could be concluded that people are not much aware about the various products of the
bank and many of them not interested to open an account at all.

Services was considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate, the demand for
banking sector is increasing day by day.

So, at last the conclusion is that there is tough competition ahead for the company from
its major competitors in the banking sector.

Last but not the least I would like to thank HDFC Bank for giving me an opportunity to
work in the field of Marketing. I hope the company finds my analysis relevant.

SUGGESTIONS

Finally some recommendations for the company are as follows:-

1. Improve Print Media.

2. More Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
.
 The bank should provide life time valid ATM card to all its customers.
  Minimum balance for savings account should be reduced from Rs 5000 to Rs
1000, so that people who are not financially strong enough can maintain their
account properly

 The company should provide a pass book to all its customers

 Make people understand about the various benefits of its products.

 Company should organize the program in the society, so that people will be aware
about the company and different products of the bank

 Company should open more branches in different cities.

ANNEXURE

Dear Respondent,

I am a student of Sinhgad Institute of Management, Pune. As a part of my Summer

Internship Programme (SIP), I have framed this questionnaire with respect to market
potential of saving account in HDFC Bank. I request you to kindly fill it up and return
back to me. I assure you that the information provided by you should be kept strictly
confidential and will be used for only my academic purpose.
PRELIMINARY INFORMATION

Firm Name: _______________________________________________________

Person Name: _________________________________________________________

Address: __________________________________________________

Contact no.: __________________________________________________

Email id.(if any):

QUESTIONNAIRE

1. Respondent’s name:-

2. Telephone no:-

3. Age in years:-

(a) Under 25 [ ] (b) 25 to 50 [ ]

(c) 50 to 75 [ ] (d) Above 75 [ ]

4. Occupation.
  Business □
 Service □
 Others □
(Please mention below the type of business/profession you are in incase of service please
mention your organization name and designation)

5. Your annual household income.

(a) Below 5000 [ ] (b) 5000-10000 [ ]

(c) 10000-15000 [ ] (d) 15000-20000 [ ]

(e) more than 20000 [ ]

6. In which bank you have a saving account?

(a) ICICI □

(b) ABN AMRO □

(c) HDFC Bank □

(d) STANDARD CHARTERED □

(e) Others □

7. What factors you prefer in opening saving account ?

(a) Interest rate [ ] (b) Good will [ ]

(c) Facilities [ ] (d) Others [ ]

8. Which is the most preferred method of banking transaction?

(a) Over the counter [ ] (b) Goodwill [ ]

(c) Facilities [ ] (d) Others [ ]

9. Are you satisfied with your bank service?

 Yes □
 No □

10. What changes would you like to have in your existing bank?

(a) Good customer relation [ ]

(b) Multi branch and multicity banking [ ]

(c) Extra features for debit and credit cards [ ]

(d) Others [ ]

11. Comments (if any):-

 Date:

Place: Signature

BIBLIOGRAPHY

1.BOOKS AUTHORS

 Marketing Management (10th Edition) Philip Kotler

 Marketing Management (3rd Edition) V.S. Ramaswamy

 Research Methodology (2nd Edition) C.R.Kothary

 Research Methodology
S.P. Kasande

2. NEWS PAPERS

 Times of India
 Financial Express
3. WEBSITES

 www.hdfcbank.com
 www.google.com