Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Submitted to Punjab Technical University In partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY:
SUPERVISOR:
DECLARATION
I, ", hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.
Date:__________________
ACKNOWLEDGMENT
If words are considered as a symbol of approval and token of appreciation then let the words play the heralding role expressing my gratitude. Firstly I am thankful to that Gracie GOD who blessed me with all kinds of facilities that had been provided to me for completion of my report. I acknowledge my deepest sense of gratitude and sincere feeling of indebtness to my divine teacher and all my faculty members whose guidance and through their sustained efforts and encouraging attitude I was able to complete my project. I am extremely grateful to the management of the Bank for permitting me to take a training and also for spending their precious time and sharing the valuable information with me and in helping my project to be a success.
PREFACE
Theory & practice are the two aspects of the management education .In order to produce dynamic & promising executive, the two have to be blend together. Practical training exposes the potential manager to the actual work environment & provides them rich insight into what actually goes on in the industrial climate of India. In fact the implementation of theory in practice is the life of management. I had the privilege of doing my Project on HDFC Bank credit card. I must say that the staff provided me with an excellent work atmosphere for doing the project. The project report is on Consumer Perception regarding the Credit Card of HDFC Bank. I have gained precious & valuable knowledge regarding practical aspects while prepare my project report.
Executive summary
India is the second fastest growing market for financial cards in the Asia-Pacific region. The countrys credit card base, pegged at 27 million in 2007, is growing at an annual rate of 30-35%. The cardholders are increasingly using credit/debit cards for dining, purchasing clothing, petrol, durable goods and jewellery. Most Indians now have multiple cards, through which they utilize balance transfers to reduce their interest burden over the short term. A thriving economy, substantial increase in disposable incomes and consequent rise in consumer expenditure, growing affluence levels and consumer sophistication have all led to robust growth in credit cards, and each issuer has posted an enviable annual growth rate for several years. New products, foreign participation and a booming tourism industry are combining to create high levels of growth in Indias nascent financial cards market, helped by product innovation and a supportive regulatory environment HDFC Bank Ltd. is one of the new private sector banks in India, which commenced business in early 1995. In this relatively short span of less than 10 years, the bank has built for itself a reputation of being one of Indias leading, innovative customer focused bank, with a consistent record of accomplishment of superior financial performance and impeccable asset quality. Some of the activities of the bank are: Loan from other bank, RBIs Legal formalities, Deposit Formalities, Lending Formalities, R & D Formalities, Analyzing loan, Auto Loan, Loan against marketable securities, Personal loan, Loan for two wheeler, Credit Card Facilities, Debit Card Facilities, Investment Advisory services, Alternative Delivery Channels, ATM, Phone Banking, Net Banking, Mobile Banking, Depository Participant Services for retail customers, Working capital Finance, Trade services, Transactional Services, Cash Management Services, Solutions to Corporate customers, Mutual funds, Stock exchange member, Accounts and deposit products, Investment and insurance, Payment services
Despite the high demand, the quality of services has not declined. Product features match the best anywhere in the world. Almost all the credit cards come with standard benefits such as free accident insurance, medical insurance at a heavy discount and much more. The cardholder is offered the option of converting a big purchase made on a credit card into a loan at a lower rate of interest spread over a long period. Banks even offer details of expenses incurred on credit cards under different headings such as food, clothes and jewellery - to enable easier tracking by the customer. E-mail alerts and mobile alerts on credit cards are commonplace. Indias regulators have been generally supportive in the development of the financial cards industry in the country. The Reserve Bank of India recently allowed certain non-banking finance companies to issue co-branded credit cards with commercial banks, though the non-bank partners activities are restricted to the marketing and distribution of the co-branded cards. The government has also been a leading player in encouraging access to financial cards for Indias poor, especially in rural areas, through schemes such as the Kisan Credit Card, which is aimed at the farming community. Nevertheless the companys mission and vision statement are mentioned to be the same, which should not be the case since the mission of the company sets apart one company from other companies in the same area of business. The mission identifies the scope of companys operations, describes companys product market and technological area. It also gives thrust to companys strategically decisions. So HDFC should have an alternate elaborated mission statement, which could be: To be a financial bank which offers wide range of financial instrument which works to deliver quality service to its customers equipped with latest technologies and novelty of international standards. Some of the strengths of HDFC bank found were: Company image and technological capability. Weaknesses included: High cost involvement and undifferentiated products, amongst opportunities were: International market and
recent technological development, and lastly the threats posed were: Price wars with competitors and competitors having superior access to channels of distribution. Another contributing factor was the quiet but aggressive promotion campaign launched by key `producers' in this sector. The growth of credit cards in number and transaction volumes in India was low compared to other countries in the AsiaPacific region. But there is definitely room for further growth. Debit cards, too, have yet to realise their full potential. Among the factors that limited growth was the comparatively slow rate of growth of ATMs in India. This is not the way most Indians perceive this issue, but cross-country statistics very definitely bear out the position as stated in the Executive Summary of a $1400-report on `Financial Cards in India', published by Euromonitor International. Though Credit card is very old concept. But it gains more importance since last few years only. It is clear from the research that majority of people have started to purchase it since last 1 - 2 years only. The main purpose of using credit card according to majority of people is shopping because at most of the times the amount to be spent on shopping is not pre planned and with the help of credit cards they do not have to worry for the cash which they need if the shopping expenses rises.
CONTENTS
Sr. No. I. CHAPTER INTRODUCTION TO PROJECT
SECTION A: THEORETICAL FOUNDATION A.1 INTRODUCTION
A.2 History
A.3 How credit cards work 3.1 Interest charges 3.2 Benefits 3.3 Grace period 3.4 Merchant's side 3.5 Parties involved 3.6 Transaction steps 3.7 Prepaid credit cards A.4 Features A.5 Security A.6 Problems A.7 Profits and losses 7.1 Costs 7.2 Revenues A.8 Credit card numbering: A.9 Credit cards in ATMs
II.
48-55 56 57-64
C.22 PERFORMANCE OF HDFC BANK C.23 FINANCIAL RESULTS C.24 Financial Analysis of HDFC Bank Limited
65-100
III IV
Objective of study
Research Methodology RATIONALE OF THE PROJECT
101-105 106-109
Data Analysis and Interpretation Finding & Suggestion LIMITATIONS OF THE STUDY
110-113
BIBLIGRAPHY
Chapter I
INTRODUCTION TO THE SUBJECT
SECTION A
THEORETICAL FOUNDATION
A.1 INTRODUCTION Competition across the 1990s has changed credit card issuers pricing strategy. Credit card issuers are competing by waiving annual fees, providing enhancements, and since the early 1990s, lowering interest rates. In the past, credit card issuers offered programs with a single interest rate, but more recently many of them have offered a broad range of card plans with differing interest rates depending on consumers credit risk and usage patterns. For example, they offer lower rates to existing customers who have good payment records (prime or A markets) while maintaining relatively high rates for higher-risk (sub-prime or B/C markets) or late-paying cardholders. Card issuers have expanded into the subprime markets not only through pricing but also by offering an array of different types of cards, including secured cards in which the credit limit is tied to a security deposit provided by the consumer. This aggressive approach has resulted in widening the
variety of credit card choices for consumers, as well as increasing potential problems. Credit is a method of selling goods or services without the buyer having cash in hand. A credit card is only an automatic way of offering credit to a consumer. Today, every credit card carries an identifying number that speeds shopping transactions. Imagine what a credit purchase would be like without it, the sales person would have to record your identity, billing address, and terms of repayment. A credit card is a system of payment named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer to be paid later to the merchant. It is different from a charge card, which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the same shape and size, as specified by the ISO 7810 standard. A.2 History The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel. The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s, in the United States, specifically to sell fuel to a growing number of automobile owners. In 1938 several companies started to accept each other's cards. The concept of paying merchants using a card was invented in 1950 by Ralph Schneider and Frank X. McNamara in order to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card, which is similar but
required the entire bill to be paid with each statement; it was followed shortly thereafter by American Express and Carte Blanche. Western Union had begun issuing charge cards to its frequent customers in 1914. Bank of America created the Bank Americard in 1958, a product which eventually evolved into the Visa system ("Chargex" also became Visa). MasterCard came to being in 1966 when a group of credit-issuing banks established Master Charge. The fractured nature of the US banking system meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. In 1966 Barclaycard in the UK launched the first credit card outside of the US. There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on. In contrast, although having reached very high adoption levels in the US, Canada and the UK, it is important to note that many cultures were much more cash-oriented in the latter half of the twentieth century, or had developed alternative forms of cash-less payments, such as Carte bleue or the EC-card (Germany, France, Switzerland, among many others). In these places, the take-up of credit cards was initially much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US, Canada or UK. In many countries acceptance still remains poor as the use of a credit card system depends on the banking system being perceived as reliable. In contrast, because of the legislative framework surrounding banking system overdrafts, some countries, France in particular, were much faster to
develop and adopt chip-based credit cards which are now seen as major anti-fraud credit devices. The design of the credit card itself has become a major selling point in recent years. The value of the card to the issuer is often related to the customer's usage of the card, or to the customer's financial worth. This has led to the rise of Co-Brand and Affinity cards - where the card designs is related to the "affinity" (a university, for example) leading to higher card usage. In most cases a percentage of the value of the card is returned to the affinity group. A.3 How credit cards work Credit cards are issued after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates his/her consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction. Electronic verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. A.3.1 Interest charges Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.
For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. A.3.2 Benefits Because of intense competition in the credit card industry, credit card providers often offer incentives such as frequent flyer points, gift certificates, or cash back (typically up to 1 percent based on total purchases) to try to attract customers. Low interest credit cards or even 0% interest credit cards are available. The only downside to consumers is that the period of low interest credit cards is limited to a fixed term, usually between 6 and 12 months after which a higher rate is charged. A.3.3 Grace period A credit card's grace period is the time the customer has to pay the balance before interest is charged to the balance. Grace periods vary, but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met. Usually, if a customer is late paying the balance, finance charges will be calculated and the grace period does not apply. A.3.4 Merchant's side For merchants, a credit card transaction is often more secure than other forms of payment, such as checks, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the
consumer defaults on the credit card payment (except for legitimate disputes and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. For each purchase, the bank charges the merchant a commission for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee. In addition, a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges as a result of disputes. Some small merchants require credit purchases to have a minimum amount to compensate for the transaction costs, though this is not always allowed by the credit card consortium. A.3.5 Parties involved
Cardholder: The holder of the card used to make a purchase; the
consumer.
Card-issuing bank: The financial institution or other organization that
issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case.
Merchant: The individual or business accepting credit card payments for
independent sales organization, but in general is the organization that the merchant deals with.
Credit Card association: An association of card-issuing banks such as
Visa, MasterCard, Discover, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
Transaction network: The system that implements the mechanics of the
electronic transactions. May be operated by an independent company, and one company may operate multiple networks. Transaction processing networks include: Cardnet, Nabanco, Omaha, Paymentech, NDC Atlanta, Nova, Vital, Concord EFS net, and Visa Net.
Affinity partner: Some institutions lend their names to an issuer to attract
customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities and charities. A.3.6 Transaction steps
Authorization: The cardholder pays for the purchase and the merchant
submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction.
Batching: Authorized transactions are stored in "batches", which are sent
to the acquirer. Batches are typically submitted once per day at the end of the business day. If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after
which the held amount will be returned back to the cardholder's available credit (see authorization hold).
Clearing and Settlement: The acquirer sends the batch transactions
through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction.
Funding: Once the acquirer has been paid, the acquirer pays the merchant.
The merchant receives the amount totaling the funds in the batch minus the "discount rate," which is the fee the merchant pays the acquirer for processing the transactions.
Charge backs: A chargeback is an event in which money in a merchant
account is held due to a dispute relating to the transaction. Charge backs are typically initiated by the cardholder. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it. A.3.7 Prepaid credit cards A prepaid credit card is not a credit card since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent or employer. However, it carries a credit-card brand (Visa, MasterCard, American Express or Discover) and can be used in similar ways just as though it were a regular credit card. After purchasing the card, the cardholder loads it with any amount of money, up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over
secured credit cards is that you are not required to come up with $500 or more to open an account. With prepaid credit cards you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card. A.4 Features As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cash back. A.5 Security Credit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. Therefore, whenever a person other than the card owner has access to the card or its number, security is potentially compromised. Merchants often accept credit card numbers without additional verification for mail order purchases. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature. Thus, a stolen card can be cancelled, and if this is done quickly, no fraud can take place in this way. For internet purchases, there is sometimes the same level of security as for mail order (number only) hence requiring only that the fraudster take care about collecting the goods, but often there are additional measures. The main one is to require a security PIN with the card, which requires that the thief have access to the card, as well as the PIN.
A.6 Problems The low security of the credit card system presents countless opportunities for fraud. This opportunity has created a huge black market in stolen credit card numbers, which are generally used quickly before the cards are reported stolen. The goal of the credit card companies is not to eliminate fraud, but to reduce it to manageable levels. This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction. Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the web server to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank, a security risk is created. However, many banks offer systems where encrypted card details captured on a merchant's web server can be sent directly to the payment processor. A.7 Profits and losses In recent times, credit card portfolios have been very profitable for banks, largely due to the booming economy of the late nineties. However, in the case of credit cards, such high returns go hand in hand with risk, since the business is essentially one of making unsecured (uncollateralized) loans, and thus dependent on borrowers not to default in large numbers.
A.7.1 Costs Credit card issuers (banks) have several types of costs:
Interest expenses: Banks generally borrow the money they then lend to
their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates.
Operating costs: This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder's balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings.
(often at the point of six months without payment), the creditor may declare the debt to be a charge-off. It will then be listed as such on the debtor's credit bureau reports (Equifax, for instance, lists "R9" in the "status" column to denote a charge-off.) The item will include relevant dates, and the amount of the bad debt.
Rewards: Many credit card customers receive rewards, such as frequent
flier points, gift certificates, or cash back as an incentive to use the card. Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spend.
Fraud: The cost of fraud is high; in the UK in 2004 it was over 500
million. When a card is stolen, or an unauthorized duplicate made, most card issuers will refund some or all of the charges that the customer has
received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card A.7.2 Revenues Interchange fee: Bank card associations such as Visa and MasterCard require merchants to pay billions of dollars in Interchange fees to banks that issue their credit and debit cards. Card-issuing banks obtain these interchange fees in addition to the enormous revenue they receive from card holder interest and fees. Interchange fees are the single largest component of the various fees that banks deduct from merchants' credit card sales. Merchants pay their banks fees of 1 to 6 percent of each sale (for large merchants these fees may be negotiated , but will vary not only from merchant to merchant, but also from card to card, with business cards and rewards cards generally costing the merchants more to process), which is why many merchants prefer cash, PIN-based debit cards, or even cheques, or will add a percentage to the sale price to cover the interchange fee. Traditionally, interchange fees have been set by the bank card associations and their major card-issuing banks, who are the primary beneficiaries of these fees. Interest on outstanding balances: Interest charges vary widely from card issuer to card issuer. Often, there are "teaser" rates in effect for initial periods of time, whereas regular rates can be as high as 40 percent. Fees charged to customers: The major fees are for: Late payments or overdue payments Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake), called over limit fees
Returned cheques fees or payment processing fees (e.g. phone payment fee) Cash advances and convenience cheques. Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this. Membership fees (annual or monthly), sometimes a percentage of the credit limit. Exchange Rate Loading Fees (May not even appear on your statement!) A.8 Credit card numbering: The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code. In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits. A.9 Credit cards in ATMs Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date.
A.10 Types of credit cards When we look back at the history of credit cards, they started out simple and standard: Each issuer produced one card with one set of features. Today, credit cards come in multiple levels with ranging interest rates, fees and reward programs, so before you fill out an application, it's important to know which will best suit your financial situation and lifestyle. The following is a brief description of the most common types of credit cards available. 1) Standard credit cards: These credit cards are the most common and are readily available from most banks and financial groups. They are unsecured, which means you do not have to put down a security deposit to prove the money can be repaid. The way the annual percentage rate is offered or calculated for these cards can vary. Here are two examples:
Balance transfer credit cards allow consumers to transfer a high interest
credit card balance onto a credit card with a low interest rate. Typical in the market today are balance transfer credit cards with an introductory annual percentage rate (APR) of 0 percent, with that introductory or "teaser" rate lasting several months up to a year. The terms of balance transfer credit cards varies between offers.
Low interest credit cards offer either a low introductory APR that jumps
to a higher rate after a certain period, or a single low fixed-rate APR. Low interest cards can be very useful when consumers need make a large purchase because it allows several months to a year to pay it off with very low or no interest.
2) Credit cards with rewards programs: Reward credit cards allow users to earn incentives for making purchases with their credit card. Reward cards usually require better-than-average credit for approval. There are seven major types:
Cash back credit card: Cash back credit card allows you to earn cash
rewards for making purchases. The more the card is used, the more cash rewards you receive. Most cash back cards earn users around 1 percent of total purchases, excluding interest and finance charges.
Reward credit cards: Reward credit cards are similar to cash back cards in
that cardholders can accumulate points toward a reward structure, which is based on how much the card is used over time. General reward cards offer cardholders a variety of items to cash points in for: gift cards, electronics, hotel stays, plane tickets, jewelry, pet supplies and more.
Hotels or traval point credit cards: This is a genre of credit cards specific
to hotels and travel. Some cards are co-branded with hotels, such as the Marriott Rewards Visa card, or the Hilton HHonors American Express card. These credit cards allow you to earn points for all purchases, in addition to bonus points for dollars spent on stays at the respective hotel chain.
Retail rewards credit cards: These credit cards are co-branded with a
major retailer, such as Disney, Amazon.com or Best Buy. Points are accumulated by making everyday purchases, though cardholders are awarded with double or triple points for making purchases from the cobranded retailers.
Gas cards with points: Gas cards come in two species: general and brand-
specific. General cards treat all gas companies equally, while brandspecific cards favor one gas company. The Discover Open Road card, a general gas rebate card, gives you 1 percent cash back for general
purchases but rewards you with 5 percent back for buying gas or having auto maintenance done at any company.
Automobile manufacturers credit cards: Auto rewards cards allow
consumers to earn points that can be redeemed toward the purchase of a new or used car, auto-related expenses or merchandise. With the GM Flexible Earnings MasterCard, for example, cardholders can opt for cash back rewards, or apply their earnings toward the purchase of a new GM vehicle. This card is most beneficial to those looking to purchase a vehicle in the near future.
Home improvement reward credit cards: These credit cards allow
consumers to earn reward points for all purchases, while earning extra points for home-related expenditures. For example, with the Citi Home Rebate MasterCard, you earn 1 percent back on regular purchases, but 6 percent back on purchases involving utilities, cable/satellite TV, Internet connection and telecom for the first year. 3) Airline mile frequent flier credit cards: While certain general reward credit cards allow points to be redeemed for plane tickets among other things, there is a subset of reward cards specifically for air travel. This type of card allows consumers to earn airline mile credits whenever they make purchases. Some cards are co-branded with a specific airline, while some are generic and can be redeemed for tickets with a variety of airlines. Points can be redeemed for airline travel, much like frequent flier miles.
Airline specific credit cards:These cards are associated with one airline.
Typically, the cardholder accumulates points from both making purchases with the card and by flying on the specified airline.
Generic airlines miles cards: Credit cards such as Miles by Discover
allow you to redeem your reward points for air travel through any airline,
travel agent or online travel site. This is a great option for people who aren't involved in a frequent flier program and aren't loyal to any particular airline. 4) Bad credit and/or credit repair cards: Credit can easily go from good to bad due to poor budgeting or simply by an overlap between jobs. If your credit score is less than satisfactory, it does not mean you cannot qualify for a credit card. There are several options available to those who have had bad credit in the past and for those who are currently trying to repair their credit. Depending on your specific situation, debt consolidation or use of introductory APRs on balance transfers may be wise choices. If you still need credit or want to start repairing your credit by proof of action, there are several credit cards designed to help rebuild poor credit histories. 5) Specialty credit cards: These types of cards are for consumers with unique needs for their credit use, such as business professionals and students. These credit card programs are designed specifically to meet the needs of those individuals.
Business credit cards: These cards are available for business owners and
executives and have many of the same features as traditional credit cards: low introductory rates, cash back programs and airline rewards.
Student credit cards: Many college students need a credit card, but they generally have little or no credit history, which makes it difficult to get approved for a traditional card. Student credit cards are specifically designed for those enrolled in accredited four-year colleges and universities to help them build a credit history from the ground up.
A.11 Detail of HDFC Bank Credit Card HDFC Bank has range of Cards help you meet your financial objectives. their Credit Cards are designed to meet your unique needs.
List of hdfc credit cards: Classic Cards Silver Credit Card Premium Cards Gold Credit Card Titanium Credit Card Woman's Gold Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Credit Card Special Benefit Cards Value Plus Credit Card Health Plus Credit Card Commercial Cards Corporate Credit Card Business Credit Card
The HDFC Bank Silver Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, fuelling up vehicle, railway ticket reservations just about any financial requirement, planned or on impulse. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.) 21 60 Rs. 200,000/- p.a. Self Employed 21 65 Rs. 150,000/- p.a.
A true value card that enables you to avail 5% cash back on all your purchases. It's power packed with a host of unmatched features that provides your family with true Value and savings. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.)
Cashless Mediclaim, discounts at participating hospitals, extra protection for the family. It brings unique features like the Cashless Mediclaim facility and discounts at leading hospitals which make it an unmatched product.
Imagine a Credit Card that takes care of your financial health as well as your family's health and fitness. This is not just a card but a guarantee of a healthy and secure future. Introducing the HDFC Bank Health Plus International Credit Card - India's first health Care Credit Card with a free inbuilt Cashless Mediclaim. This card comes to you from HDFC Bank in association with the United India Insurance Company (UIIC), one of the leading insurance service providers. This card is designed keeping your good health in mind. It brings you unique features like the Cashless Mediclaim facility and discounts at leading hospitals which make it an unmatched product. Eligibility Criteria
Salaried Minimum Age Maximum Age Annual Income (Rs.) 21 60 Rs. 200,000/- p.a.
A card to match premium lifestyle with features like special offers on air and train ticketing, assured 50% discounts on hotel tariffs, and rewards redemption against air miles. It's overloaded with travel benefits - discounts, cashback offers, air miles redemption. Eligibility Criteria
21 60 Rs 200,000/- p.a.
The unique reward points structure gives 2 reward points for every Rs150 on domestic spends and 5 reward points for every Rs150 on international spends
The customers can Enjoy the benefits of the best premium card made specifically for women. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.)
21 60 Rs 200,000/- p.a.
India's only Platinum Credit Card with exclusive travel and preferential benefits a recognition of those who have "arrived in life". Enjoy a world of exclusive privileges on your HDFC Bank Platinum Plus Credit Card.
A card for the rarest of the rare A card with unique and exclusive privileges that complement your refinement and style.
HDFC Bank presents the World MasterCard Credit Card - a very premium offering for the truly elite. A card with tailor-made premium privileges that complement a discerning lifestyle A.11.4 Commercial Cards
HDFC Bank Corporate card is the first among few to provide you with truly world beating features on your credit card. It comes with a unique 24x7 Expense management solution called SMART DATA ONLINE, powered by Mastercard International
It makes Perfect Business Sense - Better Business with HDFC Bank International Business card. Welcome to the world of exclusive privileges and world class services. The HDFC Bank International Business Card is designed to add value to your business, while keeping in mind the conveniences and lifestyle benefits for business owners and the self employed community specifically.
Bankers expect their credit card business to grow by over 30 per cent in 200708. Credit cards have seen a gradual growth from about 7.1 million in 2003 to 22.6 million in 2007. There has been approximately a 30-40 per cent growth in the number of cards in force and also the amount of annual spends on cards on a yearon-year basis.The number of cards in force this year is about 30 per cent more than that in 2006, which was at about 17.5 million.
Review of Literature Here, an attempt is made to glance through the research carried out earlier in the field of Consumer Perception regarding Bank. This chapter deals with the review of the empirical studies by the experts and the researchers, no doubt there have been large number of studies in the literature in this field and it is not possible to comment on all these studies, but it is useful to briefly look at, as many as possible. Parasuraman, (1984): identified a set of discrepancies, or gaps, between how executives perceive the quality of the service they provide and the tasks associated with delivering those services to customers. They found that the customer's perception of service quality depends upon the size and direction of the gap between the service the customer expects to receive and what he or she perceives to have been received. The magnitude of this gap (which can be either positive or negative) was determined by four interrelated variables: (1) the difference between actual consumer expectations and management perceptions of those expectations; (2) between management perception of expectations and the translation of those perceptions into service quality specifications; (3) between service quality specifications and service delivery; and (4) between both service quality specifications and service delivery, and external communications to customers. Parasuraman, noted that these gaps "can be a major hurdle in attempting to deliver a service which consumers would perceive as being of high quality." Because this study focused on the interaction between the firm's representatives and its customers, this author found the fourth gap (between both service quality specifications and service delivery, and external communications to customers) to be of particular relevance. Schlesinger and Heskett (1991):Citing research on customer loyalty conducted by the Forum Corporation, Schlesinger and Heskett (1991) noted that only 14% of customers stopped patronizing service business because they were dissatisfied by
the quality of the product, while more than two-thirds defected because of what they judged to be indifferent or unhelpful service. This finding supported the observation of Parasuraman, (1984) that customers' judgments of high and low service quality depend on "how consumers perceive the actual service performance in the context of what they expected." Zeithaml, (1990):studied whether customers' perceptions of quality were influenced by whether or not they had experienced a recent service problem they examined customers who had experienced recent service problems and those who had not. They found that service problems adversely affect customers' perception of service quality, and that customers who were dissatisfied with the resolution of their problems were twice as dissatisfied as those whose problems were resolved to their satisfaction Lees (2001) Study has also shown that the more competitive the market, the greater the importance of customer satisfaction and customer loyalty. In the credit card market loyalty is typically measured by recency, frequency, and amount of purchase Paturi (2006): The advent of contact less payment technology brings with it new opportunities for stealing information from a credit card without the owners notice. A person with a credit card in a wallet is at a busy public place (say, on a train), and a miscreant with a tag reader within the read range of the card. The miscreant, after reading the cards tag without the owners permission, would be able to identify the cardholder, steal whatever data was transmitted and potentially use that information to commit crimes. Of course, the information on the credit card may not be complete enough to enable many kinds of fraud. A card is just one of many sources of personal information a thief can get, but thieves can do extra homework to fetch additional details of a particular cardholder.
Bach (2007): Of all the games the credit card companies play, that end up costing the customers thousands of dollars (late fees, over-limit fees, transfer fees, and so on), it is always been the interest rate game that hurt the most. There is a new, completely legal game they are playing, and it can literally wipe the customer out financially if he is not careful. A customer own a credit card, he knows that if he is late with a payment the credit card company will charge him a late fee in addition to raising his interest rate. But he did not know that they can raise his interest rate if he has made a late payment on any of his other cards, including those issued by other companies. The customers may ask that why so. The answer is found in the fine print of their credit card agreement, and it's called a universal default clause. Weston (2007): The thrill of a credit card rewards program is so fleeting. Its wonderful to get free stuff travel, cash back, and money for college just by using credit card. But with so many rewards programs out there, it's hard not to second-guess your choice. Have you got the best card? Are you using it to its best advantage? Could you get more from a different one? But there is no single best card for everyone that the right card for a customer depends on the kind of rewards he wants and how much you charge. Bakshi (2008): Many of us do not realize that, when we use a credit card abroad the card issuer adds on a foreign usage loading. In fact, a recent Moneyfacts.co.uk user poll revealed that 67% of consumers do not know the charges for using their credit card abroad. Foreign usage loading on cards averages 2.75%. That means if we spent 1,000 on our credit card whilst on our holiday we would be charged 27.50. We also need to consider the fact that if we are withdrawing cash whilst abroad, we will also be charged our usual cash withdrawal fee, which averages 2%. Thus, if you withdrew 1,000 using your credit card abroad you would be charged 4.75% - 47.50.
Crystal (2008): This is a modern age of shopping malls, big cars, expensive clothes, watches, etc. If you want to live all the luxuries of life, you need to have a good bank balance. This is why this generation likes to own a credit card. The trend of using credit cards is increasing day by day. People like to be updated with the trend. It has become risky to carry cash on the move. Carrying a card is easier than carrying cash. On the other hand, expenses are on the rise and there can be times when are in need of money. Credit cards are also convenient for travelers and businessmen. So, you no longer need to save money each month to buy your preferred product. But when shopping for a card, one needs to keep several things in mind like the credit card interest rate, cost and rewards. Grant (2008): Some relief is being offered by a surprising source: credit cards. Now, consumers can earn cash for their health-savings accounts, and discounts on prescriptions, as well as dental and vision care by paying for their medical expenses with plastic. Bank of America offers two such credit cards. Citibank's card offers discounts of up to 60% on prescription drugs. HSBC is market testing a debit card linked to drugstore CSVs Extra Care rewards program. Even Target is in the game, offering a 10% discount coupon for every 10 prescriptions filled and paid for with your store credit card. Hynes (2008): Credit cards are convenient for buying things now and paying later. Credit card companies are in business to make money. Don't forget that every time you use your credit card you are borrowing money. You will pay a finance charge if you don't pay off your balance each month. The pitfalls of credit card use are the accumulation of large amounts of debt and the inability to make more than the minimum monthly payment. It's important to look out for your own interests. Limit the number of credit card applications you fill out. Consider what you are looking for in a credit card such as the interest rate, annual fee, grace period, and credit line.
Smart money (2008): When a customer is buried in debt, choosing a credit card is typically a question of finding the one with the lowest interest rate, not one that has a rewards program. After all, a 1% cash-back bonus isn't much of a perk when he is paying 18% or more in annual interest. Now some credit card companies, including Discover and Bank of America, are trying to convince the customers otherwise by launching credit cards that offer special cash-back rewards meant to appeal to those carrying a balance. According to Mr. Margo Georgialis, the chief marketing officer for Discover, We found 85% of (consumers who carry a balance) prefer rewards for paying on time versus rewards on spending," So they are trying to combine these both
INTRODUCTION TO ORGANISATION C.1 OVERVIEW HDFC or Housing Development Finance Corporation Limited, founded 1977 by Hasmukhbhai Parekh, is an Indian company which is primarily in the business of providing home loans.HDFC's distribution network spans 243 outlets that include 49 offices of HDFC's distribution company, HDFC Sales Private Limited. In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also marketed through HDFC Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA).To cater to nonresident Indians, HDFC has an office in London and Dubai and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.] HDFC Bank
Bank
Ltd.,
Mumbai, India Banking Industry Products Website Insurance Capital Markets and allied industries Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. www.hdfcbank.com
C.2 Mission and Business Strategy: Mission of HDFC Bank is to be "a World Class Indian Bank", benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Their business strategy emphasizes the following: C.3 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.
C.4 Capital Structure The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paidup capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". C.5 Merger of HDFC Bank and Centurion Bank of Punjab The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. The Scheme has been sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained. The combined entity would have a nationwide network of 1,167 branches; a strong deposit base of around Rs. 1, 22,000 crores and net advances of around Rs. 89,000 crores. The balance sheet size of the combined entity would be over Rs. 1, 63,000 crores. HDFC will also acquire a strong SME (small and medium enterprises) portfolio from CBoP. HDFC Bank Board on 25th February 2008 has approved the acquisition of Centurion Bank of Punjab (CBoP) for Rs 9,510 crore in one of the largest merger in the financial sector in India. CBoP shareholders will get one share of HDFC Bank for every 29
shares held by them. This will be HDFC Banks second acquisition after Times Bank.
HDFC Bank, Centurion boards approve 1:29 share swap ratio Shareholders of Centurion Bank of Punjab would be eligible to exchange 29 shares into one share of HDFC Bank. This follows the board of directors of the two banks approving on Monday a share-swap ratio of 1:29.
C.6 Time banks 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 crosssell and leverage alternative delivery channels. C.7 Growth The Indian economy seems likely to see some moderation in growth rates in 200809 relative to 2007- 08. It is still likely to experience healthy growth in absolute terms and will probably remain one of the fastest growing economies in the world. Nonetheless, with a lower GDP growth coupled with tighter liquidity conditions (as RBI tackles concerns on inflation) and stable or slightly higher interest rates, system credit growth is likely to be lower than in 2007-08. Downward pressures on economic growth may not immediately translate into an expansionary monetary policy, given the continued risks of inflation from global energy and commodity prices. Thus, slightly slower credit growth could coexist with firm, if not rising, interest rates. Given Indias strong macro-economic fundamentals, however, structural drivers will continue to support growth which is a positive for banks as well. C.8 Subsidiaries and associate Companies HDFC Bank HDFC Mutual Fund
HDFC Standard Life Insurance Company HDFC Sales HDFC General Insurance Other Companies Co-Promoted by HDFC Financial Information with regard to Subsidiary Companies C.9 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 clients always get the finest services offered. 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. C.10 Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis. Customers in 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 1977 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
C.11 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. Board of Directors Jagdish Capoor Chairman / Chair Person Aditya Puri Managing Director Keki Mistry Director Vineet Jain Director Renu Karnad Director Arvind Pande Director
Ashim Samanta Director C M Vasudev Director Gautam Divan Director Pandit Palande Director Harish Engineer Executive Director Paresh Sukthankar Executive Director C.12 Business Profile of HDFC Bank HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: C.13 Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. C. 14 Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by worldclass service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. C.15 Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. C.16 RATING 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 programmed has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk. Both Credit Rating and Information Services of India Limited (CRISIL) and ICRA Limited (ICRA) have for the eighth consecutive year, reaffirmed their 'AAA' rating for HDFC's deposits and bonds. This rating represents 'highest safety as regards timely repayment of principal and interest'. 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. C.17 Awards and Recognition Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a number of organizations. As in the past years, awards and recognition have been conferred on your Bank by leading domestic and international organizations during the fiscal 2007-08. Some of them are: * For the fifth consecutive year, HDFC Bank has bagged the Business Today's Best Bank Award.
* Outlook Money and NDTV Profit's Best Bank in the private sector category. * Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Award. * 'Dun & Bradstreet -American Express Corporate Best Bank Award 2007.' There were 26 categories in all, including FMCG, Telecom and Software & IT. * The Financial Express-Ernst &Young Best Bank award in the Private Sector category - HDFC bank shared the top slot with another bank * The Asia Pacific HRM Congress in Mumbai - Bank bagged as many as ten awards including "Organization with innovative HR Practices". * Business Today Survey conducted by the Monitor Group Innovation Study HDFC Bank is one of India's most innovative 28 companies across ten major business sectors * The `Asian Banker Excellence in Retail Financial Service Awards'- The Best Retail Bank in India. C.18 Branches of HDFC Currently HDFC Bank has 758 branches, 1,716 ATMs, in 325 cities in India, and all branches of the bank are linked on an online real-time basis. The bank offers many innovative products & services to individuals, corporates, trusts, governments, partnerships, financial institutions, mutual funds, insurance companies.It is a path breaker in the Indian banking sector. In 2007 HDFC Bank
acquired Centurion Bank of Punjab taking its total branches to more than 1,000. Though, the official license was given to Centurion Bank of Punjab branches, to continue working as HDFC Bank branches, on May 23, 2008 C.19 HDFC Product Range HDFC Bank India provides the following range of products: 1. Accounts and Deposits Saving Account: An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. Need money urgently? Withdraw cash from any of the1794 ATM centers spread across the country. Current Account: Having a current account with HDFC Bank is the best way of conducting your financial activities with ease, allowing you to make your payments without carrying large sums of money with you. A Current account is ideal for carrying out day-to-day business transactions. Fixed Deposit: If you believe in long-term investments and wish to earn higher interests on your savings, NOW is the time to invest your money in our Fixed Deposit. Get up to 9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more no penalty if you withdraw part of the FD in times of need. Flexibility, Security and High Returns all bundled into one offering. Demat account: HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.
Hdfc bank preferred: How would you like a banker dedicated to take care of all your banking requirements and suggesting ways to invest your money with good returns from time to time? If you're a seasoned professional or have been running a successful business over the years, the HDFC Bank Preferred Program is meant for you. As a valued customer you benefit from our Relationship Pricing Programmer with exclusive offers such as a free Gold International Debit card, a free International Titanium card or a free International Gold Credit Card, loans at preferential rates, etc Sweep-In Account: Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on your savings account. Link your Fixed Deposit to your Savings or Current Account and use it to fall back on in case of emergencies. A deficit in your Savings or Current Account is taken care of by using up an exact value from your Fixed Deposit. Since deposits are broken down in units of Re 1/-, you will lose interest only for the actual amount that has been withdrawn. Super Saver Account: Enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Supersaver Facility on your savings account. Avail of an overdraft facility of up to 75% of the value of your Deposit. Get the best of both worlds. 2. HDFC India innovative services ATM: 24-hour access to cash, view mini-statement, order cheque books, recharge your prepaid card... all from our wide network of over 1200 ATMs.
Net Banking: Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-second account information, Net Banking lets you manage your account from the comfort of your mouse - anytime, anywhere. Mobile Banking: Your Mobile is now your bank! Now access your bank account and conduct a host of banking transactions and inquiries through your mobile, with our unique Mobile Banking service. Phone Banking: When you dial in to Phone Banking, a voice prompt will guide you through the various transactions. You may also talk to a Phone Banker, who will provide you with the required assistance. Bill Pay: Now, you have the luxury of paying your telephone, electricity and mobile phone bills at your convenience through the Internet, ATMs, your mobile phone or telephone - using Bill Pay, a comprehensive bill payments solution. Whats more you can check the bill amount before you make any payments ensuring you always pay the right amount. Bill Pay has made all your bill payments easy. Branch Banking: Welcome to the networked world of HDFC Bank. You can open an account at any branch nearest to your residence or office and access it at any branch in the city or anywhere in the country. The sophisticated computerized network gives you the flexibility of accessing your Savings or Current Account from any of our over branches and over ATMs across India. Insta Alert: Now you can get regular updates on your bank account on your mobile phone or email ID. Just register for our Insta Alert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM
3. Loans Whatever your need, our range of loans can help Personal Loan: A wedding in the family? Maybe your house needs renovation? Our range of Personal Loans brings you one step closer to your dreams. Home Loan: HDFC Bank brings HDFC home loans to your doorstep. Over 3 decades of exclusive experience, a dedicated team of experts and a complete package to meet all your housing finance needs, HDFC Home Loans, help you realize your dream. Two Wheeler Loan: With flexible payment options and easy repayment, our Two Wheeler Loan offers the perfect excuse to purchase that bike you've always wanted. Car Loan: If you are a salaried individual holding any of the credit cards mentioned below, your loan gets processed faster. Express Loan: We now offer Express Loans Plus at your Doorstep to help fulfill all your needs. The procedure is simple, documentation is minimal and approval is quick. Gold Loan: With HDFC Bank's Gold Loan, you can get an instant loan against your gold jewellery and ornaments. The procedure is simple, documentation is minimal and approval is quick. Educational Loan: Bridging the gap between you and higher education
Loans Against Securities : Get an overdraft against your securities like Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds (6.60% ARS Bonds & US64 Bonds). Loans against Property: Get a loan against your residential or commercial property. Flexibility to choose between an EMI based loan or an Overdraft. Loans against Rental Receivables: Need additional funds for your business? Our Loan against Rent Receivables gives you the perfect opportunity to supplement your regular cash flow. Tractor Loans: If you are looking for finance to buy your tractor, you have come to the right place. We offer hassle-free Tractor loan with the best terms for funding at the most attractive rates in India. 4. Cards Our range of Cards helps you meet your financial objectives. So whether you are looking to add to your buying power, conducting cashless shopping, or budget your expenditure, you will find a card that suits you. Credit card: Besides arming you with unmatched spending power, our Credit Cards are designed to meet your unique needs. Choose one that's tailored for you. The best credit cards are available here, including even the online credit cards service Netsafe. Debit card: What if you could carry your bank account with you? HDFC Bank Debit Cards give you complete and instant access to the money in your accounts without the risk or hassle of carrying cash. Choose from:
Prepaid card: Besides offering convenience, our Prepaid Cards have been tailored to answer your travel and gifting needs. 5. Investment and Insurance Mutual funds: Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on quantitative parameters like volatility, FAMA Model, risk adjusted returns, and rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers. Insurance: Life insurance is designed to offer financial protection for you and your family during the times of uncertainties. Choose from a range of traditional insurance and unit linked plans designed to help you with your savings, retirement, investment and protection needs.
6. Forex and Trade Services: If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. C.20 Recent Achievements and milestones 500th Branch Inaugurated HDFC Bank has now got 500 branches and over 1200 ATMs at 220 locations across the country. It crossed the important milestone when Mr. Madhusudan Hegde, Regional Business Manager, East, inaugurated HDFC Bank's new branch at Shillong in Meghalaya.
HDFC Bank has got 177 branches in the North, 102 branches in the South, 168 branches in the West and 53 branches in the East region, and a presence in 220 locations spread over 24 states across the country. Speaking about the landmark, Mr. Aditya Puri, Managing Director, HDFC Bank said, "Crossing the 500-branch landmark is an important occasion for us. The vast network of branches and ATMs helps us reach out to our customers, not just in the metros, but in small towns and under banked regions as well. Our presence and proximity in 220 locations has enabled us to strengthen our relationships across various categories of product offerings, which is reflected in the overall performance of the bank."
HDFC Bank-IDEA Credit Card launched In an exclusive nationwide marketing alliance, HDFC Bank and IDEA Cellular Ltd., have launched a range of co-branded products. An HDFC Bank-Idea CoBranded VISA Credit Card for subscribers of Idea Cellular and an Idea-HDFC Bank Co-Branded postpaid connection for credit card customers of HDFC Bank. The Co-Branded products were unveiled by Mr. Vikram Mehmi, CEO, IDEA Cellular Ltd. and Mr. Aditya Puri, Managing Director, HDFC Bank Ltd. The alliance targets at bringing best-in-class products to customers of both Idea Cellular and HDFC Bank. The HDFC Bank-Idea co-branded VISA credit card is available in Gold and Silver variants. C.21 Future Prospects
The financial system in India has witnessed considerably less turmoil and volatility than that in advanced economies. Given this scenario, domestic corporates are more likely to turn to local sources of funding. Cyclical slowdown is unlikely to impact segments of the economy such as agriculture where a structural shift is under way. The rural economy has been the greater focus of government policy in recent years, and significant opportunities lie for banks here where the penetration of credit and financial products is still relatively low. The central and state governments appear to be driving an ambitious programme in the infrastructure sectors. The eleventh five year plan (2007-2012) envisages an investment of USD 500 billion, with approximately USD 80 billion envisaged for 2008-09 alone. This presents a major opportunity for banks and financial institutions to finance these investments. Although growth in retail credit has moderated in the last year, the low penetration levels of retail credit (estimated at less than 12% of GDP), the shift in demographics towards a higher proportion of younger working population, the changing attitudes towards borrowings, higher income levels amongst the growing middle class, and the large pent-up demand for housing, cars etc., all augur well for the long-term, sustainable growth of retail lending in the Indian market.
C.22 PERFORMANCE OF HDFC BANK Details of dividend declared by the Bank: 2007-2008 2006-2007 2005 2006 2004 - 2005 2003 - 2004 2002 2003 2001 2002 85% 70% 55% 45% 35% 30% 25%
2000 - 2001 1999 - 2000 1998 - 1999 1997 - 1998 1996 1997
C.23 FINANCIAL RESULTS: Profit & Loss Account: Quarter ended June 30, 2008 Total income for the bank for the quarter ended June 30, 2008 grew by 59.6% to Rs.4, 215.2 crores as against Rs.2, 641.7 crores in the Corresponding quarter ended June 30, 2007. Net revenues (net interest Income plus other income) were Rs.2, 316.9 crores for the quarter ended June 30, 2008, an increase of 48.7% over Rs.1, 558.1 crores for the Corresponding quarter of the previous year. Interest earned (net of loan Origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs.2, 069.2 crores in the quarter ended June 30, 2007 to Rs.3, 621.7 crores in the quarter ended June 30, 2008, up by 75.0%. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2008 increased by 74.9% to Rs.1, 723.5 crores, driven by average asset growth of 68.0% and a core net interest margin of just over 4.1%. Fees and commission was the main contributor to other income for the quarter and increased by 37.3% to Rs.511.2 crores. The other two major components of other income were foreign exchange/derivatives revenues Of Rs.157.4 crores (corresponding quarter ended June 30, 2007 Rs 146.5 crores) and (loss) on revaluation/sale of investments of Rs. (77.6) crores, as against profit of Rs.52.6 crores for the quarter ended June 30, 2007. Other income (non-interest revenue) for the quarter ended June 30, 2008 was Rs.593.4 crores as against Rs.572.5 crores for the quarter ended June
30, 2007. Operating expenses for the quarter ended June 30, 2008 were at 30.6% of total income and 55.7% of net revenues. Provisions and contingencies for the quarter were Rs.344.5 crores (against Rs.307.1 crores for the corresponding quarter ended June 30, 2007), comprising Primarily of specific provisions for non-performing assets and general provisions for standard assets of Rs.324.4 crores against Rs. 299.7 crores for the quarter ended June 30, 2007. After providing Rs.218.7 crores for taxation, the Bank earned a Net Profit of Rs.464.4 crores, an increase of 44.6% over the quarter ended June 30, 2007. C.24 Financial Analysis of HDFC Bank Limited a) Ratio Analysis A ratio is an arithmetical expression of the relationship of one number to another. A financial ratio is the relationship between two accounting figures expressed mathematically. Ratio analysis is a technique of analysis and interpretation of financial statements. 1. Liquidity Ratio a) Current Ratio: Current ratio is defined as the relationship between current assets and current liabilities. Current Ratio =Current assets/ Current liabilities Rs. in crores 2005-06 4207.30 2208.49 =1.90 2004-05 2982.13 1957.40 =1.52 2003-04 2396.45 1758.47 =1.36
Interpretation:-
This ratio is calculated to know the firms ability to meet its current obligations. Ratio has been improved from 2003-04 to 2005-06, it is near to the rule of thumb i.e 2:1. So the liquidity position of company is considered to be satisfactory. 2. Leverage Ratios a) Debt equity Ratio:-Debt equity ratio is calculated to measure the relative claims of outsiders and the owners against the firms assets. Debt-Equity Ratio = Outsiders funds Shareholders funds Rs. in lacs 2006-07 328260 643315 =0.51 Interpretation:The ratio indicates the proportionate claims of owners and outsiders against the firms assets. Ratio has been increased from 2004-05 to 2006-07. Companys debt equity ratio is considered to be satisfactory because usually 1:1 ratio is considered to be satisfactory. 3. Profitability Ratios a) Operating Ratio: - Operating ratio establishes the relationship between cost of goods sold and other operating expenses on the one hand and the sales on the other. 2005-06 170200 529953 = 0.32 2004-05 50000 451985 =0.11
Operating Ratio = Operating Cost * 100 Net Sale Rs. in lacs 2006-07 242080 2005-06 169109 2004-05 108540
522580 = 46.32%
366982 = 46.08%
222927 = 44.68%
Interpretation: - Above figures shows that operating cost of company has been increased. On the other hand sales of company are also increased. So this ratio is favorable for the company b) Net Profit Ratio: - Net profit ratio establishes a relationship between net profit and sales, and indicates the efficiency of the management in manufacturing, selling and other activities of the firm.
Net Profit Ratio = Net Profit After tax * 100 Net Sales Rs. in lacs 2006-07 114145 2005-06 87078 2004-05 66556
522580 = 21.84% 366982 = 23.73% 242927 = 27.40% Interpretation: - Above figures shows that ratios are going on decrease which indicates that the profitability of company is not good. Performance of profits in relation to sales is not good. 4. Over all Profitability Ratios a) Return on Shareholders Investment:Return on Shareholders Investment = Net Profit After Interest and Tax Shareholders fund Rs. in lacs 2006-07 2005-06 2004-05
114145
87078
Interpretation: - The ratio is going on increase. Investors would like to invest, where returns are higher. Above ratios gives the idea of growth in the companies profitability and efficiency. b) Trend Analysis The financial statements are analyzed by computing trends of series of information. This method determines the direction upwards or downwards and involves the computation of percentage relationship. 1. Trend analysis of Turnover (Interest income) Year Turnover(in lacs)
700000 600000 500000 400000 300000 200000 100000 0 2002- 2003- 2004- 2005- 200603 04 05 06 07
2002-03 201361
2003-04 254893
2004-05 309349
2005-06 447534
2006-07 688902
Turnover(in lacs)
Interpretation: - Above graph shows that interest income has continuously increased in all years. Increase in interest income is quite satisfactory 2. Trend analysis of Profit after Tax Year 2002-03 Profit After Tax 38760 2003-04 50950 2004-05 66556 2005-06 87078 2006-07 114145
(Rs. in crores)
120000 100000 80000 60000 40000 20000 0 2002- 2003- 2004- 2005- 200603 04 05 06 07 Profit After Tax (Rs. in crores)
Interpretation: - Profit after tax has substantially increased. In five year period it is more than doubled. 3. Trend analysis of Earning per Share Year 20022003-04 17.95 200405 22.92 2005-06 27.92 2006-07 36.29 03 Earning Per Share 13.75 (in Rs.)
40 35 30 25 20 15 10 5 0 2002- 2003- 2004- 2005- 200603 04 05 06 07
Interpretation: - above graph shows that earning per share has continuously increased. It means the performance of concern is good.
Area Address
0161 - 2413671 / 5035875 0161 - 5089503 YES YES 1PM, 11Am on Sat
Weekday: Monday to Friday, Timings: 9.30 am to 3.30 pm Weekend: Saturday, Timings: 9.30 am to 12.30 pm Weekly Off: Sunday
D.2
ORGANISATION STRUCTURE
Branch Manager
Relationship manager
Sales manager
PBA
PBA
Teller authority
Personal Banker
Team Leader
Personal Banker
Teller
Sales Team
Personal Banker
Personal Banker
1. Increase the market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on balancing quality and quantity and on delivering a high quality customer services. 2. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. 3. Continue to develop products and services that reduce our cost of funds and focus on high earning growth with low volatility. 4. Maintain high standards of asset quality through disciplined credit risk management.
Popular brand name Standard services Technological up gradation of system Products and services are superior Good parking space Good location Weaknesses Weak financial position Employees turnover Lack of cordial relations among the employees Less facilities as compare to other branches Opportunities Untapped rural market Serve the additional customer groups by providing wide range of products and services To expand in terms of new market or product segment Use of latest technology in business Threats Stiff competition in the market Less amount AQB (average quarterly balance ) maintained by other banks
CHAPTER III
OBJECTIVES OF STUDY Every research study has an objective. Until we have an objective, we cannot conduct a research. Objective is like our goal of any research study. Objective tells
us the motive and right path of the study. After deciding the objective we can choose the right path of our study. This study focused on the consumer perception regarding the credit cards of HDFC Bank
1. To know about the causes of dissatisfaction of customers regarding the credit
card of HDFC Bank. 2. To know about the quality of the credit card services being provided by HDFC Bank. 3. To suggest changes for improvement of credit card .
CHAPTER
RESEARCH METHODOLOGY
Research Methodology Research can be defined as a scientific and systematic search for pertinent information on a specific topic. According to Clifford Woody, Research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically.
Need of Research: The need of this research is to check the level of awareness and satisfaction of consumers regarding the credit cards of HDFC bank among the customers and to find the reasons for using those credit cards. Research Design: Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. The research design for my research is exploratory. Data Sources: The task of data collection begins after a research problem has been defined and a research design has been chalked out Two types of data sources have been used: Primary Data: Direct data collection through questionnaire. Secondary Data: Indirect data sources i.e. reports, literature on banking Sampling unit: LUDHIANA Sample size: 50 respondents Sampling Design: Sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the items to be included in the sample i.e., the size of the sample. Sample design is designed before data are collected. There are many sample designs from which a researcher can choose. Population: Population refers to part of universe from which the sample for conducting the
research is selected. Universe and population can be same in some researches. It may be finite or infinite. In finite universe the number of items is certain, but in case of infinite the number of item is infinite i.e., we cannot have an idea about the total number of items. The population for this study is all the customers who have account in any bank. Sampling Unit: Sampling unit refers to smallest possible individual eligible respondent. In my study the sampling unit is single individual who have Credit cards of HDFC Bank. Sampling Size: This refers to the total number of respondents selected from the universe to constitute a sample. The size of the sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirement of efficiency, representative ness, reliability and flexibility. The sample size for my research is 50. Sampling Techniques: In this research study, non-probability convenience sampling is opted for. Convenience sampling is done purely on the basis of convenience or accessibility.
RATIONALE OF THE PROJECT In rationale of project the discussions are about various benefits that are achieved while working the project, like It gave a chance to work with renown corporate which helped to have a look upon what actually a Corporate World is. It helped to become comfortable with different type of situations that a person faces during his tenure of working and also provided me adequate exposure related banking services. It taught the way of working in a corporate, like how to deal with different type of situations as well as persons. The project has changed many things in the daily routine life like punctuality, stress situations and most important the way of different things. The project has helped to become more familiar with Microsoft Office even more than earlier. towards
Holding Period Less Than 1Year 1 To 2 Years 2 To 5 Years More Than 5 Years Total
Responses 21 19 10 0 50
2 To 5 Years 20%
1 To 2 Years 38%
Interpretation: Though Credit card is very old concept. But it gains more importance since last few years only. It is clear from the research that majority of people have started to purchase it since last 1 - 2 years only. .Factors influencing people to purchase HDFC credit cards. FACTORS Status symbol RESPONSES PERCENTAGE 5 10% 2 4% 20 40% Imitating others Convenience Dont for purchasing want to carry cash 23 46% 0 0% 50 100% Any other Total
Interpretation: The most important factor that influences the purchase of credit card is that the people do not want to carry cash along with them when they go for shopping or for any of their expenses. It is convenient for them to carry a credit card. Also it causes them convenience of purchasing. Very few people think that they use credit cards just for imitating. So they own it because they feel it is safer.
Purposes for using credit card. PURPOSE Shopping For paying Bills RESPONSES 24 PERCENTAGE 48% 12 24% 5 10% For E- For mobile cards 7 14% 2 4% 50 100% Other Reason Total
Shopping recharging
Other Reason For 4% recharging mobile cards 14% For EShopping 10% For paying Bills 24%
Shopping For paying Bills Shopping 48% For E-Shopping For recharging mobile cards Other Reason
The main purpose of using credit card according to majority of people is shopping because at most of the times the amount to be spent on shopping is not pre planned and with the help of credit cards they do not have to worry for the cash which they need if the shopping expenses rises.
Frequency of using credit cards. Frequency Once in a week Responses Percentage 17 34% Once in a month 13 26% More than once in a month 20 40% 50 100% Total
Interpretation: Majority of people use credit cards more than once in a month as it has become a necessity in their life and they can shop when ever they want. Credit cards usage rate has been increased. People have started to use their Credit cards on weekly basis.
Total 50 100%
Services offered
Interpretation: majority of people think that the bank offers them most of insurance services as compare to cash back services or any other kind of service
Amount of credit card provided for credit shield. Amount Responses Percentage Less than 10000 17 34% 10000-20000 10 20% More than 20000 23 46% Total 50 100%
Credit shield
1000020000 20%
Interpretation:People hold those credit cards which provide credit shield according to their need. Majority prefer to hold a Credit card with more credit shield. Many of the people had credit shield availability more than 20000
Miscalculation of value of transaction. Miscalculation Responses Percentage Yes 18 36% No 32 64% Total 50 100%
Miscalculation of value
Interpretation: majority of people think that they have never gone through miscalculation of the value of their credit transaction but still there are people who are facing this kind of problem
Fulfillment of Promised facilities at the time of issuance. Fulfillment Responses Percentage Yes 40 80% No 10 20% Total 50 100%
Fulfillment of promises
No 20%
Interpretation: majority of people think that that the bank has fulfilled the promises which they made at the time of selling the credit card to the customers but only few people think that they are not being fulfilled.
Problems regarding credit cards. Problems Faced Yes Responses 20 Yes Responses No 30 Total 50
Problems
Hidden Charges
Documentation Total
Responses Percentage
12 60
1 5
20 100%
Problems
Interpretation: the problem which many people feel regarding credit card is the hidden charges behind them. Also the long processing time worries them. Reliability of Security given to the bank regarding credit cards Reliable Responses Percentage Very Much 15 30% Average 30 60% Very Less 5 10% Total 20 100%
Reliability
Average 60%
Interpretation: majority of people neither rely too much on the security offered by the HDFC bank regarding credit cards nor they are denying this factor but they think security to be average
Satisfaction towards banks services. Satisfied Responses Percentage Yes 45 90% No 5 10% Total 50 100%
Satisfaction
No 10%
Yes No
Yes 90%
Interpretation: nearly all of the people are satisfied with the services offered by the bank except few exceptions. May be they expect more from the bank.
Finding 1) Credit cards have gain more importance since last few years only. It is clear from the research that people have started to purchase it since last few years only. 2) Most of the people prefer to own a Credit card because it facilitates purchasing and people do not want to carry cash with them. So they own it because they feel it is safer. 3) There is some problem in the technology works behind the working of credit cards. This is one reason behind the dissatisfaction of cardholders. Another reason is hidden charges. 4) Cards are witnessing a gradual expansion to more cities with more segments getting covered and with more and more customers preferring to make credit card payments to cash. Suggestion
1. Some customers complained that the bank is not sending the bank statements properly, as a result of this the customers are facing a problem to pay the bills on time, and the bank is charging late fees. So that can be improved. 2. The card should be resold to the customers who have already stopped the credit card services due to some problem by solving their particular problems. 3 Given the competitive nature of the market, HDFC need to deliver superior service in order to retain their customers. 4. Though the competition is very much the bank should decrease their interest rates. 5. More and more services should offer along with Credit cards as it is an effective way to attract more customers
LIMITATIONS OF THE STUDY Although I have done sincere efforts to collect the relevant information, the study may have the following limitations:LIMITED SCOPE: - The scope of study is limited to Ludhiana only because of limited time & money. So results of study may not be generalized. DIFFICULT TO GET INFORMATION: - It was very difficult for me to get fulfill the forms because of respondents busy schedule & not providing me sufficient time to fill the form seriously. OUTPUT MAY BE INACCURATE: - This study is based on the assumption that responses are true & factual although at times that may not be the case.
DYNAMIC BEHAVIOUR OF CUSTOMER: - Customer behavior is dynamic in nature & thus over the time, finding of today may become invalid tomorrow. BIASNESS: - Though every care has been taken to eliminate such biases, but considering the human factor the possibility of small bias having come up cannot be ruled out altogether.
. BIBLIOGRAPHY Reference to web page: http://www.google.com http://www.major-media.com/learning-resources/customer-retention-lit.htm http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=18DB603 D0BEFFE7A3013B0B4DBCD01D4? Filename=Published/EmeraldFullTextArticle/Articles/0750180102.html http://inventors.about.com/od/cstartinventions/a/credit_cards.htm http://deadpresident.blogspot.com/2008/07/hdfc-bank-2007-2008-annualreport.html
http://nmccvikas.gov.in/ComptitivenessManagement/SMEFinanceCredit/CommercialBanksI nitiatives/Pages/HDFCBank.aspx http://www.networkmagazineindia.com/200305/tech3.shtml http://www.misysbanking.com/Newsroom/Press_Releases_2007/pr_items/pr_932 0.html http://www.businesswireindia.com/pressrelease.asp?b2mid=3164 http://www.cardbhai.com/hdfc/ www.hdfcbank.com http://www.creditcardtipsetc.com http://www.amazines.com/article_detail.cfm/214418?articleid=214418 cvc.nic.in/vscvc/cvcspeeches/sp21jan02.pdf http://www.thehindubusinessline.com/mentor/2008/03/03/stories/2008030350391 200.htm http://www.thehindubusinessline.com/iw/2008/08/17/stories/2008081750821100. htm http://www.hinduonnet.com/businessline/blnus/17281533.htm http://www.scribd.com/doc/3757602/centurion-bank Magazine Business Today feb 24,2008 Business Today mar 23,2008
APPENDIX
Rs. lacs
DOCUMENTS