INTRODUCTION OF HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. HDFC is India's premier housing finance company and
enjoys an impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans
to different market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market reputation,
large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote
a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission : to be a “ World Class Indian
Bank.” We realized that only a single minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our way
towards that goal.

HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a
range of banking and financial services, including commercial banking and treasury operations.
The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528
cities and total employees is 52687.

1
Company Background
Industry Finance - Banks - Private Sector.

Business Group HDFC Group

Incorporation Date 31/12/1994

Public Issue Date 31/12/1995

Face Value 10.0000

Company/Business Registration No INE040A01018

Key Officials CEO Aditya puri

HISTORY OF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited',with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the
private sector. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank
Limited’, with its registered office in Mumbai. It commenced operations as a Scheduled
Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst
the leading players in the industry .
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian

2
environment In a milestone transaction in the Indian banking industry, Times Bank was merged
with HDFC Bank Ltd., effective February 26, 2000.

MISSION

I. World Class Indian Bank

II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as:-

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

3
BUSINESS STRATEGY

I. Increasing market share in India’s expanding banking

II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit risk management
IV. Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

AWARDS

YEAR-2013
EUROMONEY 'BEST BANK IN INDIA'
AWARDS 2013

Economic Times Most Trusted Brand - Runner Up

Brand Equity &
Nielsen Research
annual survey 2013

Asia Money 2013 'Best Domestic Bank in India'

Awards

IBA Banking 'Best IT Governance Award - Runner up'

Technology Awards
2013

Global Finance 'Best Trade Finance Bank in India for 2013

Award

IDRBT Banking 'Best IT Governance and Value Delivery'

Technology
Excellence Award
2013

Asian Banker 'Asian Banker Best Retail Bank in India Award 2013 '
Excellence in Retail
Financial Services

4
 YEAR-2012
FINANCE ASIA 'BEST BANK AND BEST CASH MANAGEMENT BANK'
COUNTRY
AWARDS FOR
ACHIEVEMENT
2012

CNN-IBN 'Indian of the Year (Business)'

Nasscom IT User 'Best IT Adoption in the Banking Sector'

Award 2012

Business India 'Best Bank 2012'

Forbes Asia Fab 50 companies in Asia Pacific

Asian Banker Best Retail Bank 2012

Excellence in Retail
Financial Services

Asia money Best local Cash Management Bank Award voted by Corporates

Microsoft & Indian Security Strategist Award 2012

Express Group

World Trade Center For outstanding contribution to international trade services.

Award of honour

Business Today One of India's "Most Innovative Companies"

Financial Express- Best Bank Award in the Private Sector category

Ernst & Young
Award

Global HR 'Employer Brand of the Year 2011 -2012' Award - First Runner up, &
Excellence Awards - many more
Asia Pacific HRM

Business Today 'Best Bank' Award

5
 YEAR-2011
DUN & 'CORPORATE BEST BANK' AWARD
BRADSTREET –
AMERICAN
EXPRESS
CORPORATE
BEST BANK
AWARD 2011

The Bombay Stock 'Best Corporate Social Responsibility Practice' Award

Exchange and
Nasscom
Foundation's
Business for Social
Responsibility
Awards

NDTV Profit Best Bank Award in the Private sector category.

The Asian Banker Best Retail Bank in India

Excellence in Retail
Financial Services

Asian Banker Our Managing Director Aditya Puri wins the Leadership Achievement
Award for India

6
INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL

INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

7
BUSINESS SEGMENT

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:

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. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number of
leading Indian corporate including multinationals, companies from the domestic business houses
and prime public sector companies. It is recognized as a leading provider of cash management
and transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking Services :

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all his/her
banking requirements. The products are backed by world-class service and delivered to the
customers through the growing branch network, as well as through alternative delivery channels
like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various investment
avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans
against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading

8
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 Master card Maestro debit card as well.
The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a
total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading
players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for
debit / credit cards acceptance at merchant establishments.

Treasury:

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products 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.

TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff competition from their rivals

and world also converted into the flat from the globe. After the policy of liberalization and RBI

initiatives to take the step for the private sector banks, more and more changes are taking the part

into it. That are create competition between the private sector banks and public sector bank.

Private sector banks are today used the latest technology for the different transaction of day to

9
day banking life. As we know that Information Technology plays the vital role in the each and

every industry and gives the optimum return from the limited resources. Banks are service

industry and today it gives the innovative Technology application to Banking industries. HDFC

BANK is the leader in the industries and today IT and HDFC BANK together combined they

reached the sky. New technology changed the mind of the customers and changed the queue

concept from the history banking transaction. Today there are different channels are available for

the banking transactions. There are drastically changes seen in the use of Internet banking, in a

year 2001 (2%) and in the year 2012 (25%). This type of technology gives the freedom to retail

customers.

BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves 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. Bank is committed to do this while ensuring the highest

levels of ethical standards, professional integrity, corporate governance and regulatory

compliance. Continue to develop new product and technology is the main business strategy of

the bank. Maintain good relation with the customers is the main and prime objective of the bank.

10
 HDFC BANK business strategy emphasizes the following:

 Increase market share in India’s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and delivering

high quality customer service.

 Leverage our technology platform and open scalable systems to deliver more products to more

customers and to control operating costs.

 Maintain current high standards for asset quality through disciplined credit risk management.

 Develop innovative products and services that attract the targeted customers and address

inefficiencies in the Indian financial sector.

 Continue to develop products and services that reduce bank’s cost of funds.

 Focus on high earnings growth with low volatility.

11
 PROFILE OF THE ORGANIZATION

1.1Name of the Firm

HDFC Standard Life Insurance

G-24, Community Center,

Vikas Puri

New Delhi-110018

Tel. +91(0) 11 4508 0100

1.2 Nature of the organization

Fig 1.1 Partnership of HDFC & Standard Life

HDFC and Standard Life first came together for a possible joint venture, to enter the Life

Insurance market, in January 1995. It was clear from the outset that both companies shared

similar values and beliefs and a strong relationship quickly formed. In October 1995 the

companies signed a 3 year joint venture agreement.

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Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the

relationship. The next three years were filled with uncertainty, due to changes in government and

ongoing delays in getting the IRDA (Insurance Regulatory and Development Authority) Act

passed in Parliament. Despite this both companies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource made

available. Around this time standard Life purchased 2% of Infrastructure Development Finance

Company Ltd (IDFC). Standard Life also started to use the services of the HDFC treasury

department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies

agreed the time was right to move the operation to the next level. Therefore, in January 2000 an

expert team form the UK joined a hand picked team form HDFC to form the core project team,

based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% Stake in HDFC

Bank.

In a further development Standard Life agreed to participate in the Asset Management Company

Promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th

July 2000.

13
1.3Organization’s mission and values

Our Mission:

We aim to be the top new Life Insurance Company in the market. This does not just mean being

the largest or the most productive company in the market; rather it is a combination of several

things life;

 Customer service of the highest order

 Value for money for customers,

 Professionalism in carrying out business

 Innovative products to cater to different needs of different customers

 Use of technology to improve service standards

 Increasing market share

OUR VALUES:

 SECURITY:

Providing long term financial security to our policy holders will be our constant endeavour.

We will do this by offering life insurance and pension products.

14
  TRUST:

We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage

their investments very carefully and life up to this trust.

 INNOVATION:

Recognizing the different needs of our customers, we will be offering a range of innovative

products to meet these needs.

Company’s mission is to be the best new life Insurance Company in India and these are the

values that will guide it in that.

1.4 Products

HDFC Standard Life realizes that not everyone has the same kind of needs and keeping this in

mind, they have designed a varied range of products that suits to all the needs of an individual.

These helps in securing the future of an individual as well as the future of his family. It has

grouped the various products under four main categories which are further grouped into sub-

categories:

 Individual

 Group

 Social

15
Individual Plans: Under this group, there are further four sub-groups which includes various

plans fulfilling the varied needs of different people.

A-Protection Plans:

HDFC Standard Life Insurance-Term Assurance Plan

HDFC Standard Life Insurance- Loan Cover Term Assurance Plan

B-Investment Plans:

HDFC Standard Life Insurance-Single Premium Whole Of Life Plan

C-Savings Plans:

HDFC Standard Life Insurance-Endowment Assurance Plan

HDFC Standard Life Insurance-Unit Linked Endowment Plus II

HDFC Standard Life Insurance-Money Back

HDFC Standard Life Insurance-Unit Linked Enhanced Life Protection II

HDFC Standard Life Insurance-Children`s Plan

HDFC Standard Life Insurance-Unit Linked Young Star Plus II

D-Pension Plans:

HDFC Standard Life Insurance-Personal Pension Plan

HDFC Standard Life Insurance-Unit Linked Pension Plan

HDFC Standard Life Insurance-Unit Linked Pension Plus Plan

16
Group Plans:

HDFC Standard Life has the most varied and comprehensive list of products for progressive

employers who wish to provide the most customized and innovative employee benefit

solutions to their employees.

HDFC Standard Life Insurance-Group Term Insurance

HDFC Standard Life Insurance-Group Variable Term Insurance

HDFC Standard Life Insurance-Group Unit Linked Plan

Social Plan:

HDFC Standard Life Insurance-Development insurance Plan

17
1.5 Organizational Structure Of The Firm

Fig 1.2 Organizational structure of the company

1.6 Sources Of Data Collection

Collection of data is the first step in statistics the goal of conclusion. The data collection process

follows the formulation of research design including the sample plan. Data can be secondary or

primary, can be collected using variety of tools.

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 Primary Data

During the course of doing experiments in a experimental research but in case we do research of

descriptive type and performs surveys, whether sample surveys or census surveys, to can obtain

primary data either through observations or through direct communications with respondents in

one form or the another or through personal interviews. This, in other words, means that there

are several methods of collecting primary data, particularly in surveys and descriptive researches.

Important ones are:-

 Observation method

 Through references

 Interview method

 Through questionnaires

 Through schedules

 Warranty cards

 Distributor audits

 Pantry audits

 Consumer panels

 Using mechanical devices

 Through projective techniques

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 Depth interviews

 Content analysis

In marketing research, field survey is commonly used to collect primary data from respondents.

Surveys can be:

 Personal

 Mail

 Telephonic

It is common practice to use structured questionnaires prepared in advance, to elicit the

necessary from the respondents. Whether it is personal or mail survey, it is necessary to design

suitable questionnaire, conduct a pilot survey and undertake a pre-testing of the questionnaire.

The pre-testing will enable the researcher to realize the shortcomings of his questionnaire.

Secondary Data

Means that data that are already available i.e., they refer to data, which have already been

collected and analyzed by someone else. When researcher utilizes secondary data, he has to look

into various sources from where he can obtain data. Usually published data is available in:

 Various publications of central, state and local government

 Various publications of international bodies

 Technical &trade journals

 Books, magazines, & newspapers

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 Reports and publications of various associations connected with business and industry, banks,

stock exchange etc. Report prepared by research scholars, universities, economist, etc., in

different fields.

1.7 Sample Design

 Convenience Sampling

 Sample Method- Non-Probability Sampling

 Sample Size 100

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SWOT ANALYSIS OF THE COMPANY

A SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis is a helpful tool for

comparing and strategy planning for any business initiative.

2.1 Strengths & Weaknesses Of The Company

Strengths

 Customized and Flexible Insurance Solutions and large product portfolio.

 Robust Risk control Framework.

 Network of 500 branches and agents across 700 cities.

 Strong Financial Expertise and popular advertising.

 Globally, Standard Life plc has 1.5 million shareholders in more than 50 countries and

over 6 million customers.

 Alliance between HDFC and Standard Life giving a strong brand backing.

 Right strategy for the right products.

 Superior customer service vs. competitors.

 Great Brand Image.

 Products have required accreditation.

 High degree of customer satisfaction.

 Good place to work.

 Lower response time with efficient and effective service.

 Dedicated workforce aiming at making a long-term career in the field.

22
  HDFC bank is the second largest private banking sector in India having 2,201 branches
and 7,110 ATM’s.

 HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve
customers through Telephone banking

 The bank’s ATM card is compatible with all domestic and international Visa/Master
card, Visa Electron/ Maestro, Plus/cirrus and American Express. This is one reason for
HDFC cards to be the most preferred card for shopping and online transactions.

 HDFC bank has the high degree of customer satisfaction when compared to other private
banks.

 The attrition rate in HDFC is low and it is one of the best places to work in private
banking sector.

 HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from
various financial rating institutions like Dun and Bradstreet, Financial express, Euro
money awards for excellence, Finance Asia country awards etc.

 HDFC has good financial advisors in terms of guiding customers towards right
investments.

Weakness

 Less penetration in rural areas.

 Controversies like job cuts, racism and data loss have affected image.

 Some gaps in range for certain sectors.

 Customer service staff need training.

 Processes and systems, etc

 Management cover insufficient.

 Sect oral growth is constrained by low unemployment levels and competition for staff.

23
  HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct

competitor is expanding in rural market.

 HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyal

in terms of banking services.

 HDFC lacks in aggressive marketing strategies like ICICI.

 The bank focuses mostly on high end clients.

 Some of the bank’s product categories lack in performance and doesn’t have reach in the

market.

 The share prices of HDFC are often fluctuating causing uncertainty for the investors.

2.2 Opportunities & Threats That The Company Faces

Opportunities

 Growing rural market and better opportunities in the semi-urban areas.

 Group Insurance through large employers.

 Profit margins will be good.

 Could extend to overseas broadly.

 New specialist applications.

 Could seek better customer deals.

 Fast-track career development opportunities on an industry-wide basis.

 An applied research center to create opportunities for developing techniques to provide

added-value services.

24
  HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase.

 The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.

 HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are high
when compared to government banks.

 HDFC has very good opportunities in abroad.

 Greater scope for acquisitions and strategic alliances due to strong financial position.

Threats

 Economic instability and global crisis.

 Entry of new NBFCs in the sector.

 Legislation could impact.

 Great risk involved.

 Very high competition prevailing in the industry.

 Vulnerable to reactive attack by major competitors.

 Lack of infrastructure in rural areas could constrain investment.

 High volume/low cost market is intensely competitive.

 HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a

slight variation it’s not a good sign for the financial health of the bank.

 The non banking financial companies and new age banks are increasing in India.

 The HDFC is not able to expand its market share as ICICI imposes major threat.

 The government banks are trying to modernize to compete with private banks.

25
2.3 Unique Selling Proposition Of The Organization

HDFC Life Sampoorn Samridhi Insurance Plan

Sukh aur Samridhi. Joy, happiness and prosperity are your ultimate desire, not only for yourself

but also for your loved ones. Life insurance plans not only let you secure financial future of your

loved ones, they also assist you in attaining prosperity. With HDFC Life Sampoorn Samridhi

Insurance Plan, you can be financially prepared for the future and can fulfil your dreams &

aspirations. This plan offers financial protection to your loved ones when they need it the most,

enabling you and your family live life with peace of mind and sar utha ke !

Features

Fig.2.1 USP of HDFC Life Sampoorn Samridhi Insurance Plan

26
 Advantages

 Financial protection to your loved ones by way of a lump sum payment in case of your

unfortunate demise during the policy term. Sum assured plus attached bonuses will be paid to the

nominee. In case of death due to accident, an additional Sum Assured will be paid. The policy

will terminate and no further benefits will be payable.

 Choice of Maturity Benefit Option- on survival till maturity , you can choose maturity benefit

option

 Enhanced Cash Option Sum Assured + Reversionary Bonus +any interim bonus + any terminal

bonus + Enhanced Terminal Bonus. Policy terminates and no further benefits are payable.

 Enhanced Cover Option - Sum Assured + Reversionary Bonus + any Interim bonus + any

Terminal Bonus payable on maturity + Additional Sum Assured on unfortunate death of life

assured upto age of 99 years.

 Tax benefits under sections 80C and 10(10D) of the Income Tax Act, 1961 subject to the

provisions contained therein

27
2.4 OUR COMPETITORS

Indian Promoter Foreign Promoter

ICICI Prudential Plc, UK

HDFC Standard Life, UK

Aditya Birla Group Sun Life Financial, Canada

Kotak Mahindra Finance Old Mutual Plc, South Africa

Max India New York Life

Tata Group American International Group, USA

Vyasya Bank ING Group, Netherland

Bajaj Auto Allianz AG

Sanmar Group AMP, Australia

SBI Cardiff, France

J&K Bank, Pallonji & Co. Metropolitan Life Insurance

Dabur India Aviva Plc

28
GENERAL BANKING

Indian Promoter Foreign Promoter

ICICI Lombard Canada

Bajaj Auto Allianz AG

Cholamandalarn None

Investment Indian Farmers Fertilizers Tokio Marine and Fire Insurance

Cooperative Company

Reliance Industries None

Sundaram Finance Royal and Sun Life

Tata Group American International Group

HDFC Chubb, USA

29
 OBJECTIVES

Objective One.
 To provide the company with information of customer's Insurance policy and other
financial decision relates with the bank if they have any reasons for opting for that
particular policies.
 To know the most preferred policy.
 To know the customer satisfaction level and their perception regarding HDFC Bank.
 To know the customer awareness regarding the Bank’s products.
 To know the level of interest of customer regarding the different schemes of bank.
 To know the preference of customer regarding the extra services.
 To know the problems of customer regarding bank.

Objective Two
 To determine customers perception towards private bank and their expectation form
private bank.
 To determine the feedback on services provided by any other bank.
 To study the types of benefits provided by banking services.
 To determine the use of Internet for valuable information and decision-making process.

SCOPE OF THE STUDY

A big boom has been witnessed in Banking Industry in recent times. A large number of
new players have entered the market and are vying to gain market share in this rapidly improving
market. The study deals with HDFC Standard Life in focus and the various segments that
it caters to. The study then goes on to evaluate and analyses the findings so as to present a clear
picture of trends in the Banking sector.

30
 LIMITATIONS OF THE RESEARCH

It is said, “Nothing is perfect” and if the quite is true, I am sure that there would be few short
coming in this project also. Sincere efforts have been made to eliminate discrepancies as far as
possible but few would have reminded due to limitations of the study. These are:

 Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.3. In a rapidly changing industry, analysis on one day or in one
segment can change very quickly. The environmental changes are vital to be considered
in order to assimilate the findings.
 The information given by the respondent might be biased some of them might not be
interested to given correct information.
 Some of the respondents of the survey were unwilling to share information.

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100 people. This
data can be explore to take in the trends across the industry. The significance for the industry lies
in studying these trends that emerge from the study. It is a rapidly changing and evolving sector.

People are only beginning to wake up to it’s vast possibilities. A study like this can
attempt to guide the future of the industry based on current trends.

31
 RESEARCH METHODOLOGY
The data and information needed for the study has been collected from both primary and
secondary sources. The primary sources used for collection of information are questionnaire,
personal interviews with the customer of the HDFC Bank and official interviews in the
corporation. In addition to this the information is also collected from secondary source through
the net.

Research design:-

In the study on attempt is made to evaluate the preface of the company’s approach the sales
persons about their marketing strategies like advertisement, sales promotion tools etc. these are
making to create a awareness of brand in banking sector.

The various tasks that I have undertaken in the research design process are:

* Defining the information need

* Design the exploratory, descriptive research

RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis

It has a logical and hierarchical ordering:

* Determination of information research problem.

* Development of appropriate research design.
* Execution of research design.
* Communication of results.
Each step is viewed as a separate process that includes a combination of task , step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and
ongoing.

32
EXPLORATORY RESEARCH

The method I used for exploratory research was

* Primary Data
* Secondary data

Data collection:-

For this study the primary and the secondary data were collected from conducting survey on that
region. The following shows how I collected the primary as well as secondary data.

Primary data:-

The primary data was obtained through market survey, by personal interview and questionnaire
method at Sindhanur region.

Secondary data:-

The secondary data is collected from the company as well as through some websites
(www.hdfcbank.com)

DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

* Identification of information needed to solve the problem

* Selection or development of instruments for gathering the information

* Identification of target population and determination of sampling Plan.

33
 * Design of procedure for information collection

* Collection of information

* Analysis of information

* Generalizations and/or predictions

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION

It is a description of the characteristics of that group of people from whom a course is intended.
It attempts to describe them as they are rather than as the describer would like them to be. Also
called the audience the audience to be served by our project includes key demographic
information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program.
This will be either all or a subset of potential users, such as adolescents, women, rural residents,
or the residents of a particular geographic area. Topic areas: Governance, Accountability and
Evaluation, Operations Management and Leadership. A population to be reached through some
action or intervention; may refer to groups with specific demographic or geographic
characteristics. The group of people you are trying to reach with a particular strategy or activity.

The target population is the population I want to make conclude an ideal situation; the sampling
area to matches the target population. A specific resource set that is the object or target of
investigation. The audience defined in age, background, ability, and preferences, among other
things, for which a given course of instruction is intended.

I have selected the sample trough Simple random Sampling

SAMPLE PLAN:

This involves figuring out how many samples one need.

The numbers of samples you need are affected by the following factors:

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 * Project goals

* How you plan to analyze your data

* How variable your data are or are likely to be

* How precisely you want to measure change or trend

* The number of years over which you want to detect a trend

* How many times a year you will sample each point

* How much money and manpower you have

SAMPLE SIZE

I have targeted 100 people in the age group above 18 years for the purpose of the research. The
target population influences the sample size. The target population represents the Patna. The
people were from different professional backgrounds.

The details of our sample are explained in chapter named primary research where the divisions
are explained in demographics section.

ERRORS IN THE STUDY

Interviewer error

There is interviewer bias in the questionnaire method. Open-ended questions can be biased by
the interviewer’s views or probing, as interviewers are guiding the respondent while the
questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the
interview can greatly affect their level of interest and willingness to answer openly. As
interviewers, probing and clarifications maximize respondent understanding and yield complete
answers, these advantages are offset by the problems of prestige seeking, social desirability and
courtesy biases.

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Questionnaire error

The questionnaire designing has to careful so that only required data is concisely reveled and
there is no redundant data generated. The questions have to be worded carefully so that the
questions are not loaded and does not lead to a bias in the respondents mind

Respondent error

The respondents selected to be interviewed were not always available and willing to co operate
also in most cases the respondents were found to not have the knowledge, opinion, attitudes or
facts required additionally uninformed response errors and response styles also led to survey
error.

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 ANALYSIS AND FINDINGS

CONSUMER ATTITUDE, DATA ANALISIS & FINDINGS

Evaluation of the Study:-

A detailed analysis of the study is necessary and is to be considered in order to compare the

actual theory with that practical the variants of which may form the basis for improvements.

Keeping this point in view and to fulfill the Evaluation variants of which may form the basis for

objectives of the studies an attempt has been made to segment the various respondents on the

basis of some aspects collected from them through questionnaire. There are depicted through

tables and graphs.

The copy of questionnaire administered is enclosed and the sample size was 100 respondents are

enclosed at the end of this project. All the calculations and numerical interpretations are for

100%.

FUNCTIONAL ANALYSIS OF THE COMPANY

3.1 Finance

Functions:

The functions of the financial departments are interlinked with the functioning of practically all

other departments. The primary and essential functions of this department are:

 To maintain financial records

 To make payments of bills and expenses on time

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  To collect premiums due

 To monitor the cash flow/ funds

 To make payments of wages and salaries

 To provide information regarding financial condition of the organization

3.2 HRM

Functions:

 Hiring

 New employee orientation

 Payroll

 Performance Appraisal

 Maintaining relationships

 Policies and procedures

3.3 IT

Functions:

 Maintenance of client data

 Providing details of each insurance policy, accurately recording and merging it with

client data

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  Managing the claims by investigating, paying and recording claim data

 Maintaining the records of the beneficiaries

 Maintenance of payment information

3.4 Marketing and Sales

Functions:

 CRM (customer relationship management) database management

 Competitive analysis to identify what other companies are doing in terms of pricing,

product offering, target consumers etc

 New product development

 Crisis marketing management

 Branding and promotion

 Leveraging market opportunities

3.4.1 STRATEGIES ADOPTED BY THE PLAYERS IN THE MARKET

Gone were the days when the customers were forced to take up the kind of products

whatever coming from LIC's and GIC's stables. But now, the customer has been portrayed as the

king and to his delight, the products are redesigned and customized suiting his need taking into

account his paying capacity and multiple benefits. To much of his chagrin, he has also got an

option of withdrawing his offer within a period of 15 days (free-look period) if he is not satisfied

with the policy features. Let us look at the strategies adopted by the players in the market.
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I. SHIFT IN THE PRODUCT PORTFOLIO

Earlier the entire industry was revolving around investment and savings oriented

plans. As the interest rates are moving southwards, all the players are deliberately

focusing on selling pure risk covers in an effort to capture the new customers. The

premium on such products is low as it covers only the risk aspect and does not factor in

investments or savings. Even the market leader LIC has withdrawn some of the products,

which are positioned, on the assured returns platform. Though the share of the term

plans in the product portfolio is quite negligible, the shift towards the term products is

already visible. Typically a term plan does not provide anything by way of maturity,

unlike money back or endowment policies. Globally, close to a third of the policies fall

into this category must be an encouraging news to the players. Unit linked products are

also gaining momentum in this country. Om Kotak and Birla Sun Life have launched unit

linked schemes focusing on equity, debt and gilt edged stocks. These schemes are

expected to yield better returns when compared to normal insurance schemes. As the

awareness level about these unique products is much lower, the companies resort to

educate the customers about the salient features of the products.

II. VALUE FOR MONEY (VFM)

The sea change since the sector opened up has been on the way the basic products

have been packaged innovatively, often tailor made to provide a bundle of benefits to the

customers. This is possible through the introduction of riders, which have added value to

the risk cover at minimal cost. Riders are nothing but add-ons coming along with the base

policies for a slightly additional premium. Riders have become the major instruments for

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the organizations to lure the customers away from the competitors. The removal of 30%

cap on the premium of the base policy for the health riders alone has come as a shot in

the arm for many players since this is used as an Unique Selling Proposition by many

private players vies a vies the LIC. Later, LIC has also started announcing riders along

with the main policies dancing to the tune of the market forces. This could see many non-

life players going out of the business as life insurers offer a plethora of personal line

products as add-ons. Riders can also be availed by the existing policyholders.

III. TAPPING THE NICHE MARKETS

Private insurers are concentrating much on designing attractive products by investing

heavily on research, studying life expectancy and health statistics across age groups,

income levels, professionals and regions on their own instead of relying on data with

state insurers. The products are designed with a technical team of actuaries and a product

development team working closely together to target the niche market. The innovations

for the niche markets are abound and to name a few…..

* MetLife India Insurance Company has recently launched a Charitable Trust Policy in

Kolkata, which has evoked a lot of interest especially among the Marwari’s business

community who want to set up a temple in their name after their death. Similarly a Buy &

Sell Agreement cover from the same company permits a business enterprise to take out a

life plan on each of its partners, to ensure that the company continues.

* The other segments, which have attracted almost all the players, are the women and

the children segments. Though the State insurer has had a chunk of products sufficiently

for a longer time, it faces stiff competition from the private players in these segments.

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 * Tata AIG has offered a specialized life insurance package where the insured and the

employers of the insured have a say in it. Termed as Worksite Marketing, AIG, which has

adopted this practice in different places across the world, is spreading the concept in

India too. Worksite Marketing is a distribution method used to offer voluntary insurance

products (employee benefits) to employees at their place of work with the sponsorship or

backing of their employer, traditionally done on a deduction from the payroll. The

policyholder carries the policy with himself throughout his life, even if it happens to

change the organizations.

* Tata AIG General Insurance, for the first time in the country, has launched a

specialized product for Accountants (after tasting the success with specialized products

such as Directors and Officers policy in India) in its bid to segment the market for

professional indemnity policies. The policy has been designed with the assistance from

Bombay Chartered Accountants Society. This policy covers claims pertaining to

professional negligence, wrongful acts committed in the performance duties. It also

provides for coverage of all legal expenses incurred in defending such claims.

* Any other way to promote non-smoking? Or to reward those who give up smoking?

Om Kotak Mahindra has taken an initiative by offering a term insurance plan - a pure

protection product - to non-smokers at much cheaper price. As against an annual

premium of Rs.2400 on a Rs.10 laces policy for a 10 year term for a 30 year old under

the preferred term plan, the regular term premium works out to Rs.3400 for a similar

cover. Though there are apprehensions in the industry circle about the success of the

policy, the intention of the company is quite appreciated.

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 Even the unborn child's future can be safeguarded now. The offspring can be insured

against unfortunate congenital defects. State owned General Insurers have started

aggressively marketing these kinds of products.

IV. THRUST TO THE RURAL MARKETS

Thanks to the norms stipulated by the regulator IRDA, all the players have turned

their eyes towards the rural market. Towards ensuring equitable distribution of insurance

policies in every nook and cranny of the country, IRDA stipulates the rural obligations to

be met by the players over the years. The rural obligation on part of the new private

insurance companies is incremental in nature. It goes from 5% to 15% over the period of

5 years for life insurance and from 2% to 5% in case of general insurance. IRDA has also

defined what it meant by rural.

 The place should have a population of less than 5000

 Secondly, the density of the population should be less than 400 persons

per square kilometer.

 75% of the male population should be engaged in agricultural pursuit.

Of the 11 private sector life insurers, 10 companies substantially performed in the rural

sector with the percentage of policies issued in the rural sector standing higher than 5%

level mentioned. Most of the non-life insurers achieved the base level of 2% gross

premium from rural sector. Since the penalty for not adhering to the obligation includes

Rs.5 laces penal fee and up to 3 years of imprisonment of the Chief of the organization,

all the companies are swarming the rural market. The challenge lies in reaching the

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critical mass with the redesigned products. And the organizations have been fairly

successful in their efforts. For instance, Om Kotak Life Insurance is successful in selling

the single premium policy in rural market. Reaching the doorsteps of the villagers

through non-conventional channels like Regional Rural Banks (RRBs), Co-operative

banks, Self-Help Groups (SHGs), ITCs e-choupal is also being tried by the players

V. TAPPING UNCONVENTIONAL DISTRIBUTION CHANNELS

Nevertheless all the players depend heavily on their agents force to reach out (LIC

has reached a figure of 8,50,000 agents and planned to increase it to 1 million by this

year), they are trying out other distribution channels also like banks and corporate

agencies in addition to the channels mentioned above. The following table shows the

strategic alliances the insurers have entered into to distribute their products.

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3.5 Data Analysis

1. FROM WHICH COMPANY YOU ARE MORE FAMLIAR

FAMILIARTY

23%
HDFC SLIC
ICICI PRUD
77%

According to the survey conducted 77% people are familiar with ICICI PRU while remaining

23% familiar with HDFC SLIC.

MALE FEMALE

HDFC STANDARD LIFE 20% 3%

ICICI PRUDENTIAL 60% 17%

According to the survey conducted 20% male and 3% female are familiar with HDFC SLIC.

60% male and 17% female are familiar with ICICI pru.

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 ADVERTISEMENT IMPACT

HDFC SLIC
48% ICICI PRUD
52%

2. ADVERTISEMENT IMPACT IS MORE ON YOUR MIND

Secondly when the question asked that whose advertisement impact is more on their mind 52%

say s ICICI PRU & 48% says HDFC SLIC.

MALE FEMALE

HDFC Bank 40% 8%

ICICI Bank 40% 12%

According to the survey conducted 40% male and 8% female says HDFC SLIC advertisement

impact is more. 40% male and 12% says ICICI PRU advertisement impact is more.

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3. CHOICE OF MORE SUCESSFUL COMPANY IN LONG RUN

MORE SUCESSFUL IN LONG RUN

22%
HDFC SLIC
78%
ICICI PRUD

The next question is about the success of both companies in long run78% says ICICI PRU &

22% says HDFC SLIC.

MALE FEMALE

HDFC Bank 18% 04%

ICICI Bank 60% 18%

According to the survey conducted 18% male and 04% female says HDFC SLIC is more

successful in long run. 60% male and 18% female says ICICI PRU is more successful in long

run.

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4. CHOICE OF BEST SERVICE PROVIDER

BEST SERVICE PROVIDER

43% HDFC SLIC

57% ICICI PRUD

The next analysis is of judging the best service provider in which 57% says ICICI PRU &

remaining 43% says HDFC SLIC.

MALE FEMALE

HDFC Bank 30% 13%

ICICI Bank 40% 17%

According to the survey conducted 30% male and 13% female says HDFC SLIC is best service

provider. 40% male and 17% female says ICICI PRU is best service provider.

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5. CHOICE OF NEAREST BRANCH

NEAREST BRANCH

33%
20
40
67%

67% people say ICICI PRU & 33% people say HDFC SLIC.

MALE FEMALE

HDFC Bank 20% 13%

ICICI Bank 50% 17%

According to the survey conducted 20% male and 13% female HDFC SLIC is the nearest

branch. 50% male and 17% female says ICICI PRU is the nearest branch.

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6. CHOICE OF BEST INFRASTRUCTURE

BEST INFRASTRUCTURE

37%
22
38
63%

63% people say ICICI PRU IS a best infrastructure & 37% says HDFC SLIC infrastructure is

best.

MALE FEMALE

HDFC Bank 27% 10%

ICICI Bank 50% 13%

According to the survey conducted 27% male and 10% female says the best infrastructure is

HDFC SLIC. 50% male and 13% female says the best infrastructure is ICICI PRU.

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7. CHOICE OF DOING EMPLOYEMENT

Choice of employment

35%
21

39
65%

65% says ICICI PRU is the best choice for employment & 35% people says HDFC SLIC is best.

MALE FEMALE

HDFC Bank 20% 15%

ICICI Bank 40% 25%

According to the survey conducted 20% male and 15% female says the best choice for

employment is HDFC SLIC. 40% male and 25% female says the best choice for employment is

ICICI PRU.

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 CONCLUSION & RECOMMENDATION

Our exhaustive research in the field of Banking threw up some interesting trends which can be
seen in the above analysis. A general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various companies and their banking
products. People are beginning to look beyond HDFC for their banking needs and are willing to
trust private players with their hard earned money.

People in general have been impressed by the marketing and advertising campaigns of banking
companies. A high penetration of print , radio and Television ad campaigns over the years is
beginning to have it’s impact now.

Another heartening trend was in terms of people viewing banking as a tax saving and investment
instrument as much as a protective one. A very high number of respondents have opted for
banking for such purposes and it shows how banking companies have been successful to attract
public money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires

improvement. But therein lies the opportunity for a relative new comer like HDFC Bank Ltd .

HDFC has never been known for prompt service or customer oriented methods and HDFC

Standard Life can build on these factors :

 ICICI Bank is on the upper side in the private life insurance companies in comparison to

HDFC Bank.

 The account holder are not satisfied with HDFC Bank

 The customer said the ICICI Bank is more successful in long run

 Males are more familiar with ICICI Bank in comparison to female

 The customers are not well known about HDFC Bank in comparison to it competitor.

 The company is offering good services, which is reflected on the satisfaction of the customer.

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