By Anish Kumar Singh

A Study On Market potential of HDFC bank in Dimapur

Submitted by Anish Kumar Singh Enrollment no: 171100200002 Faculty Guide: MS Azono Khatso

Company Guide Mr. Rajiv Singh Assistant Manager HDFC Bank

A report on partial fulfillment of the requirements of the MBA program (class of 2011-2013) ICFAI University- Nagaland

DECLARATION
I, the undersigned hereby solemnly declare that the project entitled MARKET POTENTIAL OF HDFC BANK IN DIMAPUR is the original piece of work submitted by me under the guidance of MS Azono Khatso , Faculty Guide, and Mr Rajiv Singh, Assistant Manager HDFC Bank Dimapur , for the partial fulfillment of MBA course of ICFAI University, Nagaland and is exclusively prepared by me and the findings in this project report are based on the data collected by me. To the best of knowledge and belief this project report or any part of it has not been submitted in any university or institutions for MBA or any other degree.

Anish Kumar Singh ICFAI University Nagaland

TABLE OF CONTENTS Acknowledgementi Abbreviationsii Preface..iii Project Profile..iv Executive summary.v Research Methodologyvi-vii Introduction to HDFC bank.1-6 a) HDFC Bank in Nagaland.7 Stratigical changes of banks from pulling the customers to pushing the customers to open an account..8-11 Edge of HDFC bank products over other private bank products12-23 Customer satisfaction level of HDFC bank Dimapur.24-39 Market share of HDFC bank Dimapur 40-41 SWOT analysis of HDFC bank42 Recommendations and suggestions.43 Limitations ..44 Conclusion45 Appendices..46-48 Bibliography49

ACKNOWLEDGEMENT I would like to express my sincere thanks and deep sense of gratitude to those who have helped me during the collection of data and gave me rare and valuable guidance for the preparation of this report. I take the opportunity to extend my deep sense of gratitude and obeisance to DR C.P Alexander (Dean, ICFAI University Nagaland) and MS Wapangsenla Imchen(Internship coordinator) who gave me the opportunity to undertake my summer training from this esteemed organization . I would also like to extend my heartiest gratitude to MS. Azono Khatso ( Faculty guide) for her objective guidance, suggestions, co-operation and for acquainting me with various pertinent issues during the project.

I would also like to extend my heart-felt thanks to Mr. Rajiv Singh (Asst. Manager, HDFC Bank Dimapur) for his guidance, suggestions, Co-Operation, motivation and for acquainting me with various pertinent issues during the project.

Last but not least, I would also like to thank all the respondents who spend their valuable time in filling up my schedule.

Abbreviations
AQB- Average Quarterly Balance AMB- Average monthly Balance HDFC- Housing Development Finance Corporation ATM- Automated Teller Machines ADS- American Depository Shares CARE-Credit Analysis & Research Limited GDR- Global Depository Receipts ICICI -Industrial Credit and Investment Corporation of India

ii

PREFACE
For the convenience of the study, the entire project is mainly divided into four different objectives. OBJECTIVE1 portrays the introduction of the organization, organizations objective and organization in Nagaland. OBJECTIVE 2, provides information about Stratigical changes of banks from pulling the customers to pushing the customers to open an account. OBJECTIVE 3, deals with the edge of HDFC bank products over other other private bank products Objective 4, deals with the customer satisfaction level of HDFC bank. Objective 5, provides information about market area covered by HDFC bank in comparison with other banks.

Before concluding I would like to apologize to all concerned respective for any sort of mistake(s) made by me in preparation of the report.

iii

Project Profile

Project Title:
Market potential of HDFC bank in Dimapur Name of the Company
HDFC bank Circular road Dimapur Nagaland 797112

Duration- 21st May to 20th July2012 Faculty Guide- MS Azono Khatso Organizational Guide- Mr. Rajiv Singh(Asst. Manager) HDFC bank Dimapur Major Objectives:
1) To study the Stratigical changes of banks from pulling the customers to pushing the customers to open an account. 2) Edge of HDFC bank product over other private bank products 3) Market area covered by HDFC bank in comparison with other banks. 4) Customer satisfaction level of HDFC bank.

iv

Executive Summary
HDFC Bank was launched in 6th January 2010 in Dimapur. Within a short span of time it has been able to attract good number of customers. As per the report based on background papers meeting held in Dimapur District, the market share of HDFC Bank in 2011 was only .78% which has grown up to 4% in 2012. Within a very short span the company has increased its market share from .78% to 4%. The objective of my study is to analyze the Market potential of HDFC Bank in Dimapur. For the convenience of the study, the entire project is mainly divided into four different objectives. OBJECTIVE1 portrays the introduction to the organization, organizations objective and organization in Nagaland. OBJECTIVE 2, provides information about Stratigical changes of banks from pulling the customers to pushing the customers to open an account. OBJECTIVE 3, deals with the edge of HDFC bank products over other other private bank products Objective 4, deals with the customer satisfaction level of HDFC bank. Objective 5, provides information about market area covered by HDFC bank in comparison with other banks.

Research Methodology
To analyze the edge of HDFC Bank products over other private Bank products, the information is gathered through secondary sources such as visiting the bank websites, visiting bank branch.

Data Source: Questionnaire Sample Design. The research has been done on the customers of the HDFC Bank. Total no. of customers are 1500. Type of sampling- Probability Sampling Type of Probability sampling- Random Sampling This sample is taken with the help of sample size calculator. After putting all the value the sample size of 231 was arrived at The sample size is taken with the confidence level 90% and confidence interval is 05% and the population is 1500.

Research Design: Nature of the research design- Unbiased Research Design of Questionnaire- According to the need of the information Questionnaire development and pre testing- After developing the questionnaire, it is approved by the Company Guide. Data gathered- Market Survey Type of interview- Personal interview, face to face interaction. Source- Primary and Secondary Source Design of Sample- Sample Size calculator

vi

Data collection
Data Collection

Data is collected through the Primary Source with the respondents (existing consumers) of the HDFC Bank Time of data collection- 3 weeks The research was done under guided by the Company Guide

ANALYSIS TECHNIQUE Data thus gathered are analyzed in a sequential and logical order by using the Microsoft Excel and Microsoft Word. For the purpose of analysis data are tabulated and conclusion has been drawn with the use of table, pie charts, bar diagram on the ground of finding the desired result that fulfills the said objective. SCOPE The scope of our study is confined to the consumer of HDFC Bank Dimapur. It is limited only to the 231 consumer of HDFC Bank Dimapur.

vii

Introduction to the organization, organizations objective and organization in Nagaland.

HDFC Bank Limited (the Bank)is a banking company. The Bank is engaged in providing a range of banking and financial services. The Bank operates in four segments: treasury, retail banking, wholesale banking and other banking business. The treasury segment primarily consists of net interest earnings from the Banks investments portfolio, money market borrowing and lending, gains or losses on investment operations and on account of trading in foreign exchange and derivative contracts. The retail banking segment raises deposits from customers and makes loans and provides other services. The wholesale banking segment provides loans, non-fund facilities and transaction services to large corporate, emerging corporate, public sector units, government bodies, financial institutions and medium scale enterprises. The other banking business segment includes income from para banking activities, such as credit cards, debit cards and third party product distribution, primary dealership business. Image HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,544 branches spread in 1,399 cities across India. All branches are linked on an online real-time basis. Customers in over 500 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 have a strong and active member base. The Bank also has 8,913 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York

Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader. 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 banking the Indian environment. 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. 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. 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 the clients always get the finest services offered. Credit Rating The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be" of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". 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). Management Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector. The Managing Director, Mr. 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. Businesses 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 HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Maste rcard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2010, the bank had a total card base (debit and Awards and Achievements -Banking Services

UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011 - Best Performing Bank Private Asian Banker International Excellence in Retail Financial Services Awards 2012 Best Retail Bank in India Best Bancassurance Best Risk Management 5th Loyalty Summit award Customer and Brand Loyalty ICAI Awards 2011 Excellence in Financial Reporting 2011 Outlook Money Best Bank Award 2011 - Best Bank - Runner Up Best Commercial Vehicle Financier - Driving Positive Change Business world Best Bank award Best Cash Management Bank Best Trade Finance Bank Asian Banker Strongest Bank in Asia Pacific Bloomberg UTV's Financial Leadership Awards 2011 Best Bank

IBA Banking Technology Awards 2010 Winner 1) Technology Bank of the Year 2) Best Online Bank 3) Best Customer Initiative 4) Best Use of Business Intelligence 5) Best Risk Management System Runners Up Best Financial Inclusion IDC FIIA Awards 2011 Excellence in Customer Experience 2010

Outlook Money 2010 Awards Best Bank. Businessworld Best Bank Awards 2010 Best Bank (Large)Teacher's Achievement Awards 2010 (Business) Mr. Aditya PuriThe Banker and PWM 2010 Global Private Banking Awards Best Private Bank in IndiaEconomic Times Awards for Corporate Excellence 2010 Business Leader of the Year - Mr. Aditya Puri. 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

HDFC bank in Nagaland The Housing Development Finance Corporation Limited(HDFC) was launched in 6 January 2010 in Nagaland. As per the report based on background papers D.C.C/D.L.R.C meeting, the market share of HDFC bank in 2011 was around .78% which has grown to 4% in 2012. In a very short span of time it has been able to draw good number of customers. The staffs of HDFC bank Dimapur are as follows-

1. Lansinam Panmei (Branch Manager) 2. Lovito Zhimomi (Operation Manager) 3. Kahuto Achumi (Cashier) 4. James lotha (Deputy Manager) 5. Debabrat Sarma (Assiatant Manager) 6. Rajiv Singh (Assiatant Manager) 7. Imlisanen Aier (Sales Officer) 8. Nungsang Ao (Executive Two wheeler Loan) 9. Themreso Rockson (Auto Loan)

Stratigical changes of banks from pulling the customers to pushing the customers to open an account In the post-independence period, India observed the emergence of large number of institutions for providing finance to different sectors of the economy. During the five year plans, the Reserve Bank of India (RBI; Central Bank in India) and the government nurtured and encouraged commercial banks through various financial incentives and other supportive programs to provide with cheap finance to encourage industries to implement the import substitution growth model adopted by planning commission of India. There were limited number of banks during this period, and mostly were nationalized banks with some private banks such as Indusind bank, ING vysya. Though there were some private banks but The activities of private sector and banks were restricted through branch licensing and entry regulation norms. Before liberalization, the functions of banks were to safeguard peoples money and to provide cheaper loans. Due to nationalization of banks in 1969 and 1980 there was no scope for competition, there was no target for the employees for opening new accounts. Banks were less in number and customers were large in number. The customers waited in cue to open their accounts. The working of banks was such that, a branch is opened, any one willing can open their account. The banks didnt search for customers, infacted customers were searching for banks to open their account. The committee on Financial System (GOI 1991), with the objective to fabricate efficient, prudent and internationality competitive system, suggested more market-friendly blue print for first generation reforms of financial sector. Liberal policies facilitate to increase market competition among banks to augment efficiency and productivity by the management to choose independent decisions about input-output and their prices by individual banks. The transfer of ownership of banks from the public to private was aimed at entrusting the banks with greater responsibilities for the economic development of India by taking banking services to the masses and taking special care of the weaker section of the society and the priority sector of the economy. Though the number of banks offices magnitude and the variety of their operations

has grown considerably during the period of near about three decades, but it appears that the banking sector has entered into serious among customers. The other remarkable developments to enhance competition in banking sector reforms are: 1) It abolished administered interest rate regime by allowing banks to determine lending and deposit rates. 2) Competition has infused by allowing the operation of new private sector banks and more liberal entry of foreign banks. 3) Measures to broaden the ownership base of PSBs have also taken. 4) The system has also observed greater levels of transparency and standards of disclosure. 5) It introduced ratification of the legal structure to strengthen banks position in the areas of loan and default loan. After liberalization of banks in 1991, the conditions in the banking industry have changed, economic reform and in particular financial sector reform has altered the atmosphere in which the participants operate. After liberalization, new private and foreign banks were opened and as a result competition increased. This resulted in banks attracting customers with new products and features. Before liberalization, there were no customer targets for the bank employees, but now due to stiff competition banks are setting targets for the employees. Earlier( before liberalization) commercial viability or profitability of banks was not considered because government was there to fund the bank losses. This resulted in banks adopting aggressive strategies to search for customers. Due to liberalization and increase in competition, more and more banks are opening every day resulting in presence of banks in every corner. Financial Sector Reforms set in motion in 1991 have greatly changed the face of Indian Banking. The banking industry has moved gradually from a regulated environment to a deregulated market economy. The market developments kindled by liberalization and globalization have resulted in changes in the intermediation role of banks. The pace of transformation has been more significant in recent times with technology acting as a catalyst. While the banking system has

done fairly well in adjusting to the new market dynamics, greater challenges lie ahead. Financial sector would be opened up for greater international competition under WTO. The major challenges ahead for bank management are as follows: as well as their long-term viability.

information technology, but its usage by our banking system is somewhat muted. It is wise for Indian banks to exploit this globally state-of-art expertise, domestically available, to their fullest advantage. dicators suited to their own requirements, business profile and risk appetite in order to better monitor and manage risks. The reasons as to why the banks changed their strategy from pulling the customers to pushing the customers to open an account are1. Before 1991 majority of the banks were nationalized thus reducing competition. During this time the major function of the banks was to safeguard peoples money instead of generating profits for the bank. 2. Due to lack competition, customers opened their account to safeguard their money and to avail loan at cheaper interest rates. 3. After liberalization in 1991, private banks were given freedom to open new branches. 4. Due to liberalization new private banks were opened thus resulting in competition and generating new ideas to attract customers. 5. Competition resulted in attracting customers with new products and features. 6. The objective of the banks changed from only safeguarding peoples money to profit maximizing for the organization. 7. For this reason sales persons were appointed who were given customer targets. 8. Earlier commercial viability of banks was not considered as the main function of national banks was to safeguard peoples money. 9. Now government does not fund for bank losses as before. This resulted in banks adopting aggressive strategies to attract more and more customers.

10. Now a days customers do not have time. 11. Customers have more option than before as there are banks in every corner. These all resulted in banks changing their strategy from pulling the customers to pushing the customers to open an account.

Edge of HDFC bank products over other bank products

Comparison of HDFC bank with AXIS bank 1. Savings A/C Basis of distinction Regular Savings A/C HDFC Bank Average Monthly Balance (AMB) is Rs 5,000 Non maintenance charges: If AMB is between Rs 2,500 to Rs 5,000, a charge of Rs 250/- per month would be levied. If AMB is less than Rs 2,500, a charge of Rs 350/- per month would be levied. Benefit Free - 25 cheque leaves per calendar quarter, net banking, free A/C statement AMB is Rs 25,000. Non maintenance charges: If AMB in the account is between Rs 10,000/- to Rs 25,000/ - Rs 350/- per month would be levied. If AMB is less than Rs 10,000 Rs 500/- per month would be levied. AXIS Bank Average Monthly Balance is Rs 5,000 for semi urban areas. Non maintenance charges: If AQB in the account is below Rs 5,000, a charge pf Rs 750 per quarter would be levied. Benefit Free - 20 cheque leaves per calendar quarter. net banking, free A/C statement

Savings Max A/C

No such A/C

Kids advantage A/C

Average Monthly Balance (AMB) is Rs 5,000 If AMB of Rs 5,000 is not maintained. Rs 100 per month will be levied. Can be opened by the guardian as long as the child is minor. Features: Free Education Insurance cover Rs. 1,00,000 in the event of death of parent, guardian through vehicular accident by road, rail or air

No such A/C

Basis of distinction Womens savings A/C

HDFC bank No such A/C

AXIS bank Average Monthly Balance is Rs 5,000 for semi urban areas. Free net banking, A/C statement Non maintenance charge is Rs 750 per quarter AQB requirement is Rs 10,000. Free ATM card Non maintenance charge is Rs 750 quarterly,

Prime Savings A/C

No such A/C

Senior citizen A/C

AMB requirement is Rs 5,000. Non maintenance charge is Rs 100 per month. Features: cash withdrawals of up to Rs. 25,000 per day, No annual maintenance charge (AMC) for the first year, accidental hospitalization cover of Rs. 50,000 per annum.

AQB requirement is Rs 5,000. Non maintenance charge is Rs 750 per quarter. Features: free senior citizen ID card which gives information such as , blood group, illness. Withdraw upto Rs 40,000 per month through ATM

Interpretation:
Savings A/C From the above information it is found that though HDFC is providing 5 additional cheque leaves, the non maintenance charge of minimum balance required of HDFC bank is higher than AXIS bank. The customers of HDFC bank have to pay Rs 250 per month if the AMB is between Rs 2,500-5,000 and Rs 350 if AMB is below 2,500 which is around Rs 750 and Rs 1,050 per quarter. Whereas the non maintenance charge of AXIS bank is Rs 750 per quarter. So AXIS bank has an edge over HDFC bank in savings A/C. Savings Max A/C As AXIS bank does not provide Savings Max A/C, HDFC bank has complete edge over this product

Kids Advantage A/C As AXIS bank does not provide Kids Advantage A/C, so HDFC bank has complete edge over this product. Womens savings A/C and Prime savings A/C AXIS bank has complete edge over these products as HDFC bank does not provide Womens savings A/C and Prime savings A/C.

Senior Citizen A/C When compared with AXIS bank, HDFC has an edge over this A/C because, the AMB non maintenance charge is Rs100 which is around Rs 300 per quarter. Whereas in AXIS bank, the non maintenance charge of AQB is Rs 750. The features provided by HDFC bank are- cash withdrawals of up to Rs. 25,000 per day, accidental hospitalization cover of Rs. 50,000 per annum. Whereas the features provided by AXIS bank are- free senior citizen ID card, Withdraw upto Rs 40,000 per month. This shows that HDFC bank has an edge over AXIS bank for senior citizen A/C.

Current A/C Basis of distinction Premium current A/C

HDFC bank Free local cheque collection and payment, average quarterly balance is Rs 25,000, non maintenance charge is Rs 900 No such A/C

AXIS bank No such A/C

No frills A/C

Zero balance A/C, Instant welcome kit, international debit card

Regular current A/C

AQB requirement is Rs 10,000, non maintenance charge is Rs 750 per quarter. Features: free cheque payment anywhere, convenient inter city banking

No such A/C

Interpretation:
From the above information it is found that, HDFC has an edge over AXIS bank in premium current A/C and regular current A/C as AXIS bank does not provide such A/Cs. AXIS bank has an edge in no frills or zero balance A/C as HDFC does not provide such A/C.

Comparison of HDFC bank with ICICI bank Savings A/C Basis of distinction Regular savings A/C HDFC bank Average Monthly Balance (AMB) is Rs 5,000 Non maintenance charges: If AMB is between Rs 2,500 to Rs 5,000, a charge of Rs 250/- per month would be levied. If AMB is less than Rs 2,500, a charge of Rs 350/- per month would be levied. Benefit Free - 25 cheque leafs per calendar quarter, net banking, free A/C statement ICICI bank Average Monthly Balance (AMB) is Rs 5,000 Non maintenance charges: If AMB is between Rs 2,500 to Rs 5,000, a charge of Rs 250/- per month would be levied. If AMB is less than Rs 2,500, a charge of Rs 350/per month would be levied. Benefits Free 30 cheque leafs per calendar quarter, net banking, free A/C statement

Savings Max A/C

AMB is Rs 25,000. Non maintenance charges: If AMB in the account is between Rs 10,000/- to Rs 25,000/ - Rs 350/- per month would be levied. - If AMB is less than Rs 10,000 Rs 500/- per month would be levied. Average Monthly Balance (AMB) is Rs 5,000 If AMB of Rs 5,000 is not maintained. Rs 100 per month will be levied. Can be opened by the guardian as long as the child is minor. Features: Free Education Insurance cover Rs. 1,00,000 in the event of death of parent, guardian through vehicular accident by road, rail or air

There is no such A/C

Kids advantage A/C

Instead of Kids advantage A/C, ICICI bank has Young Stars A/C which is to be opened by the Guardian. The AMB requirement is Rs 2,500. Free personalized cheque book. Non maintenance charge is Rs 100 per month. Free International Debit Card for children above the age of 7 years.

Interpretation:
Regular Savings A/C From the above information it can be stated that both HDFC and ICICI bank provides similar features and the non maintenance charges of AMB are also similar i:e Rs 250 for AMB between 2,500-5,000 and Rs 350 for AMB less than Rs 2,500. The only difference between these two banks is in the cheque leaves provided. HDFC bank provides 25 cheque leaves per quarter whereas ICICI bank provides 30 cheque leaves per calendar quarter.

Savings Max A/C As ICICI bank does not provide this account, HDFC bank has complete edge over this product.

Kids Advantage A/C The average monthly balance of HDFC bank for this A/C is Rs 5,000 whereas for ICICI bank the average monthly balance is Rs 2,500. Non maintenance charge is Rs 100 for both the banks. HDFC bank provides free education insurance cover of Rs 1,00000 and ICICI bank provides free international debit card. HDFC bank has an edge over ICICI bank as HDFC bank provides free education insurance cover of Rs 1,00000. If the customers wants to maintain minimum A/C balance than, ICICI bank has an edge over HDFC bank as the average monthly balance requirement is Rs 2,500 for ICICI bank.

Comparison of HDFC bank with ICICI bank (Current A/C) Basis of distinction Premium current A/C HDFC bank ICICI bank

Regular current A/C

Free local cheque collection No such A/C and payment, average quarterly balance is Rs 25,000, non maintenance charge is Rs 900 AQB requirement is Rs No such A/C 10,000, non maintenance charge is Rs 750 per quarter. Features: free cheque payment anywhere, convenient inter city banking

Interpretation:
HDFC bank has complete edge over ICICI bank in current A/C as ICICI bank does not provide current A/C.

Recurring Deposit

HDFC bank Minimum amount to be invested is Rs 500 A minimum tenure of 6 months and a maximum tenure of 10 years.

AXIS bank Minimum amount to be invested is Rs 1,000 per month A minimum tenure of 12 months and maximum tenure of 120 months

ICICI bank Minimum amount to be invested is Rs 500 A minimum tenure of 12 months and maximum tenure of 120 months

Interpretation:
When compared with AXIS bank and ICICI bank, HDFC bank has an edge over these two banks. The minimum amount to be invested is Rs 500 for HDFC bank and ICICI bank. Whereas for AXIS bank, the minimum amount to be invested is Rs 1,000. The minimum tenure of investment for HDFC bank is 6 months. For AXIS bank and ICICI bank the minimum tenure is 12 months. Thus HDFC bank has an edge over AXIS bank and ICICI bank in recurring deposit.

Interest rates for recurring deposits Tenure HDFC bank( Annual) Normal Senior rates citizens rates 7.25% 7.25% 7.25% 8.50% 8.50% 8.50% 8.50% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 8.25% 8.25% 7.75% 7.75% 7.75% 9.00% 9.00% 9.00% 9.00% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 8.75% 8.75% AXIS bank(Annual) Normal rates --------------------9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 9.25% 8.75% 8.75% 8.75% Senior citizens rates --------------------10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 9.50% 9.50% 9.50% ICICI bank(Annual) Normal rates 7.00 7.00 8.00 9.25 9.25% 9.25 9.25% 9.25% 9.25 9.25 9.25% 9.25% 9.25% 9.25 9.25% 9.25% 8.50% Senior citizens rates 7.50 8.00 8.50 9.75 9.75 9.75 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 9.25 9.25

6 Months 9 Months 12 Months 15 Months 18 Months 21 Months 24 Months 27 Months 30 Months 33 Months 36 Months 39 Months 48 Months 59 Months 60 Months 90 Months 120 Months

Interpretation:
When compared the recurring deposit interest rates for 6 and 9 months , HDFC bank has an edge over AXIS and ICICI bank as the rate is higher than the two banks. For recurring deposit of 12 months to 59 months, ICICI and AXIS bank has an edge over HDFC bank. For recurring deposits of 60 months, HDFC has an edge over AXIS bank, but ICICI bank has an edge over HDFC and AXIS bank. For recurring deposit of 90 and 120 months, AXIS and ICICI bank has an edge over HDFC bank. Thus, in conclusion it can be said that HDFC bank has an edge over AXIS and ICICI bank for short term recurring deposit of 6 and 9 months. But ICICI and AXIS bank has an edge over HDFC bank for long term recurring deposit of 12 to 120 months.

Interest rates for fix deposits Tenure HDFC bank( Annual) Normal Rates for rates senior citizens 3.5% 4% 5% 7% 7% 7.25% 4% 4,5% 5.5% 7.5% 7.5% 7.75% AXIS bank(Annual) Normal rates 3.5% 3.5% 5% 6.25% 6.5% 7% Rates for senior citizens 3.5% 3.5% 5% 6.25% 6.5% 7% 7% 7.75% 8.25% 7.5% ICICI bank(Annual) Normal rates 3.75% 4% 5% 6.25% 6.5% Rates for senior citizens 4.25% 4.5% 5.5% 6.75% 7%

7-14 days 15-29 days 30-45 days 46-60 days 60-91 days 91 Days to less than 6 months 1 day 91 days to less than 6 months 4 days 6 months 1 day - 6 months 15 days 6 month 5 days to 9 month 19 days 6 months 16 days 6 months 17 days - 9 months 15 days 6 months to less than 9 months 9 months 16 days 9 months to less than 1 year 9 months 17 days - 1 year 9 months 20 days to less than a year 1 year 1 day - 1 year 15 days 1 year to I year 24 days 1 year 16 days 1 year 25 days to less than 2 years

7.75% 7.25%

8.25% 7.75% 7.5% 8.25%

8%

8.5% 7.5% 8.25%

7.25%

7.75% 7.75 8.25

9%

9.5% 7.50% 8%

9.25%

9.75% 9.25% 9.75%

1 year 17 days - 2 years I year to less than 14 months 2 years 1 day - 2 years 15 days 14 months to less than 5 years Upto 5 years

8.5%

9% 9.25% 10%

9.25%

9.75% 9.25% 10% 8.5% 9.25%

9.25%

9.75%

Interpretation:
From the above data it can be concluded that, from 7 days to 6 months 16 days, HDFC bank has an edge over AXIS bank and ICICI bank. For a period of 6 months to less than 9 months, AXIS bank has an edge over HDFC bank. For a period of 9 months 16 days, HDFC bank has an edge. For a period of 9 months to less than a year, AXIS bank and ICICI bank have an edge over HDFC bank. For a period of 1 year 16 days, HDFC bank has an edge over AXIS bank and ICICI bank. For a period of 2 years, ICICI bank has an edge over HDFC bank. For a period of upto 5 years, AXIS bank has an edge over HDFC bank as it is providing .25% interest rate more than HDFC bank for senior citizen fix deposit.

Analysis for Customer Satisfaction level of HDFC bank

1. Types of banking A/C Response
Savings A/C Current A/C Joint A/C

No. of respondents
182 38 11

Percentage(%)
79 16 5

Account Type
5% 16% Saving A/c Current A/C Joint A/c 79%

Interpretation:
Thus we can interprete that , out of 231 respondents, 182 respondents have savings A/C, 38 have current A/C, and 11 have joint A/C. In percentage wise it can be said that, 79% of the respondent have savings A/C, 16% have current A/c and 5% have joint A/C.

2.Services provided by bank. Response Normal Banking Net Banking Mobile Banking No. of respondents 231 90 231

services provided by bank

services provided by banks 250 200 150 100 50 0 Normal Banking Net banking Mobile banking 90 231 231

Interpretation:
From the above chart we can conclude thatThough HDFC bank provides normal banking, net banking and mobile banking, out of 231 respondents, all are using normal banking, 90 respondents are also using net banking and 231 respondents are using mobile banking. 131 respondents are not using net banking that is around 57% of the total respondents.

3. Customer satisfaction level in relation to services provided by the bank. Response Very satisfied Satisfied Somewhat satisfied Moderately satisfied Not satisfied 33 14 0 0 No. of respondents 68 115 15 Percentage(%) 29 50 7

Customer Satisfaction level

Very satisfied Satisfied Somewhat satisfied Moderatelysatisfied Not satisfied

0% 7%

14% 29%

50%

Interpretation:
It can be inferred from the above data that, out of 231 respondents, 68 are very satisfied with the services provided by the bank, 115 respondents are satisfied, 15 are somewhat satisfied and 33 are not satisfied. This shows that, out of 100%, 29% of the respondents are very satisfied, 50% are satisfied, 7% are somewhat satisfied and 14% are not satisfied with the services provided by the bank.

When inquired for why the 14% of the customers are not satisfied, the reasons were1. Lack of knowledge. 2. Opening an account without proper inquiry. 3. Not willing to visit the branch to clear the doubts due to lack of time. 4. Average Monthly Balance which is Rs 5,000 is too high. 5. Comparison of HDFC bank with Government bank such as SBI

4. Procedure to open an A/C Response Its difficult Its easy No. of respondents 45 186 Percentage(%) 19 81

Procedure to open account

Its difficult Its Easy

19%

81%

Interpretation:
From the above data we conclude that, out of 231 respondents, 45 respondents thinks that the procedure to open an account is difficult and 186 respondents thinks that the procedure to open an account is easy. This shows that out of 100%, 19% of the respondents faced difficulties to open an account whereas for 81% of the respondents, opening an account was easy. When inquired about the difficulties faced, the findings wereDocumentation problem. The documents needed to open an account are address proof and photo proof. The respondents didnt had one or the other.

5. Prompt services Response Always Often Sometimes Rarely never No. of respondents 107 124 0 0 0 Percentage(%) 46 54 0 0 0

Prompt services
Always Often Sometimes 0% 0% 0% Rarely never

46% 54%

Interpretation:
From the above data it can be concluded that, out of 231 respondents 107 respondents agreed that they always get prompt services while visiting the branch and 124 agreed that they often get prompt services.

6. Knowledge of the bank staff. Response Yes No No. of respondents 211 20 Percentage(%) 91 9

Knowledge of the bank staff

Yes No

9%

91%

Interpretation:
When the respondents were asked about the knowledge of the bank staff, out of 231 respondents, 211 agreed that the bank staff have good knowledge regarding the products that is around 91% of the total respondents. 20 respondents said that the bank staff does not have appropriate knowledge that is around 9% of the total respondents.

7. Branch staff have good communication skills Response Yes No No. of respondents 218 13 Percentage(%) 94 6

Communication Skills
Yes No

6%

94%

Interpretation:
From the above data it can be said that, out of 231 respondents,218 respondents feels that the branch staff have good communication skills and 13 feels that they dont have good communication skills. Thus it can be concluded that 94% of the respondents feels that the branch staff have good communication skills and 6% of the respondents feels that the branch staff does not have good communication skills.

8. Customer service representatives put you on hold for long.

Response
Yes No

No. of respondents
36 195

Percentage(%)
16 84

Hold call for Long

Yes No

16%

84%

Interpretation:
It can be inferred that out of 231 respondents, 195 (84%) feels that the customer service representative does not put on hold for long and 36 (16%) feels that the customer service representative put on hold for long. According to the bank staff the reason is increasing work load.

9. Problems related to banking account in the last one year.

Response Once 1-5 Times 5-10 Times More than 10 times Never

No. of respondents 23 38 5 0 165

Percentage(%) 10 17 2 0 71

Problems to Bank a/c

Once 1-5 Times 5-10 Times more than 10 times Never

10% 17%

2% 71% 0%

Interpretation:
From the above data,we can conclude that out of 231 respondents, 23 have faced problem related to banking account at least once in the last one year,38 have faced problems in between 1-5 times, 5 have faced problems for 5-10 times, and 165 respondents didnt faced any problem during the last one year. It shows that 10% of the respondents have faced problem atleast once, 17% for 1-5 times, 2% for 5-10 times and 71% of the respondents didnt faced any problem in the last one year.

10. Banking problems and issues addressed by the banking staff Response Immediately Within 24 hrs Within 48 hrs Within 3-5 days More than a week Still pending No issues No. of respondents 36 17 6 4 3 0 165 Percentage(%) 16 7 3 2 1 0 71

Banking Issues handled

Immediately More than a Week Within 24hrs Still Pending within 48hrs No issues within 3-5 days

16% 7% 3% 2% 71% 0% 1%

Interpretation:
From the above data, it can be concluded that out of 66 issues, 36 were handled quickly, 17 issues were handled within 24 hrs, 6 issues were handled within 48 hrs, 4 issues were handled within 3-5 days and 3 issues took more than a week to be handled.

Out of 100% respondents, 29% of the respondents faced some problems. 16% of the problems were handled immediately, 7% of the issues were handled within 24 hrs, 3% of the issues were handled within 48 hrs, 2% of the issues were handled within 3-5 days, 1% of the issues took more than a week to be handled.

11. Average Monthly Balance limit is not high and it justifies the services Response Strongly Agree Agree Somewhat agree Disagree Strongly disagree No. of respondents 40 130 23 38 0 Percentage(%) 17 56 10 17 0

AMB justify the services

Strongly agree agree Somewhat agree 0% 17% 17% Disagree Strongly diasgree

10%

56%

Interpretation:
From the above data we conclude that, out of 231 respondents 40 strongly agree that the AMB limit is not high and justifies the services, 130 agree that AMB limit is not high, 23 somewhat agree that AMB limit is not high, 38 respondents disagree that the AMB is not high and justifies the services. This shows that out of 100% respondents, 17% strongly agree that AMB limit is not high and justifies the services, 56% agree that AMB is not high, 10% somewhat agree that the AMB is not high, 17% disagree that the AMB is not high.

12. Financial transactions with the bank Response Very satisfied Satisfied Dissatisfied No. of respondents 120 77 34 Percentage(%) 52 33 15

Transaction with the bank

Very satisfied Satisfied Dissatisfied

15%

52% 33%

Interpretation:
It can be inferred from the above data that 120 respondents are very satisfied with the financial transactions, 77 are satisfied and 34 are dissatisfied. This shows that 52% of the respondents are very satisfied with the financial transactions with the bank, 33% are satisfied with the financial transactions and 15% of the respondents are dissatisfied.

13. Usage of Online banking services.

Response Yes No

No. of respondents 90 141

Percentage(%) 39 61

Online banking serves

Yes No

39%

61%

Interpretation:
From the above data, it can be stated that, out of 231 respondents, 90 respondents are using online banking and 141 are not using online banking. This shows that only 39% of the respondents are using online banking and the rest 61% are not using online banking. Currently HDFC bank is trying to increase the percentage of online users by providing them net banking Demo and assistance in net banking.

14. satisfaction level of online banking services. Response Yes No No. of respondents 90 0 Percentage(%) 90 0

Satisfaction level of online services

Yes 0% No

100%

Interpretation:
The above data shows that 90 respondents are using online services or net banking and the satisfaction level is 100%

Market share of HDFC bank Dimapur. This report is based on Background papers meeting Dimapur District as on quarter ended June 2012. Banks Allahabad Bank Bank of Baroda Central Bank of India Punjab National Bank Punjab and Sindh Bank State Bank of India Syndicate Bank Union Bank of India United Commercial Bank(UCO) Vijaya Bank Small Industries Development Bank of India(SIDBI) Bank of India Union Bank Federal Bank ICICI Bank Market Share(%) 2.03 4.89 2 1.54 3.92 41.08 1.02 2.99 .61 2.59 .50

.60 .83 7.11 1.8

Industrial Development Bank 5.19 of India(IDBI) AXIS Bank 13.50 Housing Development Finance Corporation(HDFC) Nagaland Rural Bank Nadakkal Service Cooperative Bank(NSCB) Total 4 .62 3.18 100%

As per the information provided by the Bank staff, the market share of HDFC bank was .78% in 2011 which has grown to 4% in 2012. This shows that the Bank is growing at a healthy rate. The market potential of HDFC bank is very high in Dimapur as it has covered only 4% of the total market share.

SWOT analysis of HDFC bank Strength HDFC bank has its own brand value of being Indias No 1 bank for two consecutive years(20092010). The employees of HFDC bank are very customer friendly. They display proper information to their customers. HDFC bank has a wide network of branches i.e around 2544 and 8913 ATMS which is highest among all private banks in India. It maintains transparency in yht sense of hidden charges to its customers. One can find the needed information just by visiting the bank branch as all the informations are displayed openly which is not so in other private banks. Weakness Common man cannot open his/her account due to higher AMB. The AMB for regular savings account is Rs 5,000. It hardly advertises its products and services. There are some advertisement done through hoardings but has hardly advertised itself using electronic media which other banks such as AXIS bank and ICICI bank are doing.. Opportunities HDFC bank has a good brand name. People expect safety and better services, which HDFC bank provides better than others. So by providing better services it will surely attract more and more customers in the coming days. As it has situated itself in the middle of the town, it has good opportunity to attract businessmen and influential people of Dimapur town. As per the report (2011) the market share of HDFC bank was .78% which has grown to 4% (2012). Within a short span of time, the bank has been able to attract good number of customers which is a good sign for the bank for the coming days. Threats AXIS and ICICI bank are the major threats to HDFC bank. Being a private bank, HDFC bank does not have any competition with the nationalized banks. So AXIS and ICICI banks will be the major threat.

Recommendations and suggestions

1. Instead of maintaining average Monthly Balance, the bank needs to maintain Average Quarterly Balance because the non maintenance charges are more than those banks which are maintaining Average Quarterly Balance. For example AXIS bank. 2. The bank should also provide simple ATM card as many does not need International Debit Card. 3. The AMB should be reduced from Rs 5,000 to Rs 3,000. 4. The bank should advertize its brand through electronic media such as Television. This will increase the awareness to the customers. 5. The bank should increase the awareness of online banking among its customers as many do not use online banking.

Limitations
Every work has its own limitations. Limitations of this project are The project was constrained by time limit of two months. Completing the objectives within two months was difficult. Getting appointment from the concern people was difficult. Busy schedule of the bank employees.

Conclusion
HDFC Bank was launched in 2010 in Dimapur. Within a very short span of time it has been able to attract good number of customers. By 2011, the market share of HDFC bank Dimapur was .78% which than increased to 4% in 2012. The reason behind the increase is customer satisfaction. The bank is expecting to further increase its market share in the coming years. HDFC bank has great potential in Dimapur . HDFC Bank has an edge in Current A/C when compared with AXIX Bank and ICICI bank. This is so because the current A/C provided by AXIS bank are very much limited and ICICI Bank does not provide current A/C. According to the survey conducted on the topic customer satisfaction level of HDFC Bank, it is found that the customer satisfaction level are high which is a good sign for the bank. Finally some recommendations for the bank are1. Instead of maintaining average Monthly Balance, the bank needs to maintain Average Quarterly Balance because the non maintenance charges are more than those banks which are maintaining Average Quarterly Balance. For example AXIS bank. 2. The bank should also provide simple ATM card as many does not need International Debit Card. 3. The AMB should be reduced from Rs 5,000 to Rs 3,000. 4. The bank should advertize its brand through electronic media such as Television. This will increase the awareness to the customers. 5. The bank should increase the awareness of online banking among its customers as many do not use online banking.

Appendices

Dear Respondent,

I am Anish Kumar Singh of MBA 2nd Semester ICFAI University Nagaland. I am conducting a survey to analyze the Customer satisfaction level of HDFC bank for my Internship Report on the topic Market Potential of HDFC Bank.

I would appreciate if you could kindly spare your valuable time in filling up the Questionnaire which will enable me to complete my study.

Whatever information is supplied will be kept confidential.

Thanking you

Anish Kumar Singh MBA 2nd Semester ICFAI University Nagaland Dimapur

Questionnaire on HDFC banks customer satisfaction level Name Address . 1. What type of banking A/C do you have?........................................................ 2. How long have you had these accounts in the bank?............................................ 3. What are the services provided by the bank? Normal Banking Net Banking Mobile Banking Phone Banking

4. How satisfied are you with the services provided by the bank? (Please tick the appropriate option) Very satisfied Satisfied Somewhat Satisfied Moderately Satisfied Not satisfied

5. Do you feel that the procedure to open an account with the bank is difficult? (Please tick the appropriate option) Yes, to a certain extent No, it is easy

6. Do you always get prompt services whenever you visit the branch? (Please tick the appropriate option) Always Often Sometimes Rarely Never

7. Do the branch staff have appropriate knowledge about banking services? Yes No

8. Do the branch staff have good communication skills? Yes No

9. Do the customer service representatives put you on hold for long? Yes No

10. Are the banking issues handled quickly? Yes No

11. How many times have you faced a problem related to your banking account in the last one year? (Please tick the appropriate option) Once 1-5 times 5-10 times more than 10 times Never

12. How quickly were your banking problems and issues addressed by the banking staff? (Please tick the appropriate option) Immediately Within 24 hrs Within 48 hrs Within 3-5 days More than a week

Some issues are still pending

No Issues

13. Do you agree that Average Monthly Balance limit is not high and it justifies the services? Strongly agree Agree Somewhat agree Disagree Strongly Disagree

14. Are you satisfied with your financial transactions with the bank? Very satisfied somewhat satisfied Dissatisfied

15. Are you able to use the banking services online? Yes No

16. Are you satisfied with the online banking services? Yes No

Bibliography
www.HDFCbank.com www.AXISbank.com www.ICICIbank.com www.google.com www.managementparadise.com Business Research Methods book HDFC bank report on Dimapur market share.