banking service and investment product of hdfc bank gurav2
TRANSCRIPT
SUMMER TRAINING PROJECT REPORTON
“BANKING SERVICES AND INVESTMENT PRODUCTS OF HDFC BANK”
A project report submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Administration of
IIMT GREATER NOIDA
Submitted To: Submitted BySOMESH KUMAR KULDEEP KUMAR (Roll No. : 6135543) BBA 6TH SEM.
IIMT COLLEGE OF MANAGEMENTGREATER NOIDA
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DECLARATION
I, hereby declare that this project report “BANKING SERVICES AND INVESTMENT PRODUCTS OF HDFC BANK ” is my own work, to the best of my knowledge and belief. It contains no material previously published or written by another person nor material which to a substantial extent has been accepted for the award of any other degree or diploma of any other institute, except where due acknowledge has been made in the text.
KULDEEP KUMAR Roll No. 6135543
Date: __/__/__
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CERTIFICATE
The project report of KULDEEP KUMAR, Roll No. 6135543, A Market Research Project
Report on “BANKING SERVICES AND INVESTMENT PRODUCTS OF
HDFC BANK.” is approved and is acceptable in quality and form.
Internal Examiner External Examiners
(Mr. _____________)
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PREFACE
In this economic for tightening Business nuts and bolt of any company industries or
enterprises it is necessary to measure it market position in a certain time interval with the ever
changing theories and the concept of market. For this assessment we need the robust
methodology of survey. Although survey does not reveal the absolute solution of any
objective, but it provides the inclination towards a good out put.
The preparation of this report provides us great pleasure in releasing our work and market
experience in few pages which shows overall result and experienced knowledge and the
practical approach about the style of a professional and thinks which we found various
affecting to our marketing product image.
I hope that I will get the result that will lie in the neighborhood of exactness.
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ACKNOWLEDGEMENT
A successful completion of a project is like a golden feather for any cap. Truly this cannot be
turned without apt guidance and help. One must always be obliged to his guide and helpers.
I would like to thank Mr. SOMESH KUMAR, Faculty of IIMT Greater Noida give me so much
help in completing this project report and other members of the company so much helpful and
familiar with their trainees.
Finally, I am very grateful to these reverent personalities without whom it would not have been
possible for me to put forward this project in present form.
KULDEEP KUMAR
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Table of Contents
S. No. Description Page No.
1 Executive Summary 6
2 Introduction to the topic 7
3 Introduction to the organization 8
4 Importance of the study 68
5 Scope of the study 69
6 Literature review 70
7 Conclusion 88
8 Recommendation and suggestion 89
9 Appendix and Bibliography 93
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EXECUTIVE SUMMARY
“It makes me clear about banking sector”
This study introduces us about the deposits, the investment products or services offered to the
public by HDFC Bank, and what is the benefit for investing your money? Investment is a sharing
device, so it is crucial to think in a dynamic world where we invest our hard-earned money.
A project is an outcome offer of sincere labor and curious mind. It’s worth depends not
necessarily on the status of the maker but on practice and profession. The best and most of topic must
get wasp and web of it, treated woven with lucidity and logical compulsion. Given the level of
treatment there is no essential dichotomy between quality and brevity that together must go into
construction of project.
The company aims to cover a large market area with efficient market infrastructure and though
better services. My project report has been prepared on the topic “BANKING SERVICES AND
INVESTMENT PRODUCTS”. By studying this concept, we can come to know the actual outcome of
investment. We spend our money to fulfill our regular needs but we neglect our future necessary
requirements, which could be solved through these investments offered to us now a day. Through
small investment regularly, we can fill the well (account) which is surely going to help us and save
from inflation rate as no one can spend a lot at a single point of time in this era. So small investments
are a better idea for everyone with better returns and less lock in period also.
Investment is that sharing device that feed the dear ones of your family when there is any
requirement in your family. Going through this report, one can easily find out the various services
offered by HDFC in the field of deposits to serve the same which are planned and made after
considering, analyzing and concluding the requirements of the people in various situations of life.
The plans are clearly explained and their need is depicted in the followed graphs. I hope this study
will become a good asset for the readers.
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INTRODUCTION
Banking Services and Investment products is the title of the RESEARCH. It specifies the
services offered by HDFC Bank. The Project describes about different savings and current account
facility offered by bank and other investment options provided by bank. It helps me to analyze about
the situation of HDFC Bank.
Thep r i mary ob j ec t ive o f HD F C i s t o enhanc e r e s iden t i a l hous i ng s t ock in
t he Country through the provision of housing finance in a systematic and
professional Manner, and to promote home ownership. Another objective is to increase the
flow of resources to the housing sector by integrating the housing finance sector with
the overall domestic financial markets
Organizational Goals
HDFC’s main goals are to
a) Develop close relationships with individual households.
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions.
d) Provide consistently high returns to shareholders.
e) To grow through diversification by leveraging off the Existing client.
HISTORY 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 setup 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 Ban
k commenced operations As a Scheduled Commercial Bank on 16th January
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1995. In the year 1998 HDFC Bank had tied up with the Ahmadabad Stock
Exchange (ASE)to act as its clearing bank
Subsidiary and Associate Companies
The subsidiaries of HDFC consists of
1. HDFC Bank
2. HDFC Mutual Fund
3. HDFC Standard Life Insurance Company
4. HDFCSS Realty
5. HDFC Chubb General Insurance Company Limited
.6. Intel net Global Services Limited
7. Credit Information Bureau (India) Limited
8. Other Companies Co – Promoted by HDFC
HDFC Trustee Company Ltd
GRUH Finance Ltd
HDFC Developers Ltd
HDFC Venture Capital Ltd
HDFC Venture Trustee Company Ltd
HDFC Securities Ltd.
HDFC Holding Ltd
Home Loan Services India Pvt. Ltd
The Organization:-
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 setup 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
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of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations As a Scheduled Commercial Bank on 16th January 1995. In the year 1998 HDFC
Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank
.
Business Focus
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on
four core values - Operational Excellence, Customer Focus, Product Leadership and People.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 corer (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and
about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity isheld by Foreign Institutional Investors (FIIs) and the bank has about 190,000shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York
Stock Exchange (NYSE) under the symbol "HDB
.
Times Bank Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of
HDFC Bank For every 5.75 shares of Times Bank. The acquisition added significant value to
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HDFC Bank in terms of increased branch network, expanded geographic reach,
enhanced customer base, skilled manpower and the opportunity to cross-sell and
leverage alternative delivery channels.
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INTRODUCTION TO THE ORGANISATION
Profile
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 Bank is India’s premier private commercial bank. Today, we have our presence in 300
cities across India with more than 650 branches to bring you the best banking experience ever.
The customer is a King is probably an old adage , but we at HDFC Bank hold true this golden
rule even today . In our earnest endeavor to promote convenience , we customize all our products to
meet your world class needs . With this , we attempt to provide you world class products at a
competitive price while also offering technology to make banking with us ,effortless.
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BANKING SERVICES AND INVESTMENT PRODUCTS
PRODUCTS
Savings Regular Account
Savings Plus Account
Current Account
Kid’s Advantage Account
Institute & School Fee Collection
Family Savings Group
Fixed Deposit
HSL account
Loans
Debit Card
Gold Debit Card
Forex and Trade Services
Direct Banking Chain
Insurance product
Regular Saving Account
An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and
withdraw cash. Check up on your balances from the comfort of your home or office through Net
Banking, Phone Banking and Mobile Banking.
Need money urgently? Withdraw cash from any of the 1695 ATM centers spread across the
country.
Features & Benefits
Wide network of branches and over thousand ATMs to meet all your banking needs no
matter where you are located.
Bank conveniently with facilities like Net Banking and Mobile Banking- check your
account balance, pay utility bills or stop cheque payment, through SMS.
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Never overspend- Shop using your International Debit Card that reflects the actual
balance in your savings account.
Personalised cheques with your name printed on each cheque leaf for enhanced security
Take advantage of Bill Pay, an instant solution to all your frequent utility bill payments.
Instruct for payment over the phone or through the Internet.
Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your
account.
3 Free transactions on SBI/Andhra Bank ATMs per month. Free Payable-at-Par cheque book, without any usage charges upto a limit of Rs.50,000/-
per month. Free Insta Alerts for all account holders for lifetime of the account.
Free Passbook facility available at home branch for account holders
Saving plus Account
Introducing the best banking option for you with HDFC Bank Savings Plus Account. No you can
get access to some of the finest banking facilities
with HDFC Bank's Savings Plus Account. All you have to do is maintain an Average Quarterly
Balance of Rs. 10,000/- and experience the benefits as mentioned below:
Features & Benefits
Wide network of branches and over thousand ATMs to meet all your banking needs no matter
where you are located.
1. Free transactions on SBI/Andhra Bank ATMs per month.
2. Free transactions on any other Bank's ATM per month.
3. Free International Debit Card for all account holders for life time of the account.
4. Free Payable at Par (PAP) cheque book without any usage charges up to a limit of 50,000
per month.
5. Free Demand Drafts on HDFC Bank locations, up to a limit of 25,000/- per day.
6. Free Bill Pay & Instant Alerts for all account holders for lifetime of the account
7. Free Electronic Funds Transfer facility, Net Banking, Phone Banking & Mobile Banking
8. Special relationship discount on purchase of Gold Bars
9. 25%- off on the Locker rental for the 1st year (only).
10. Intercity Banking / Multi-city Banking.
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CURRENT ACCOUNT
At HDFC Bank, we understand that running a business requires time and money. Also since your
business needs are constantly evolving, it requires effective and timely management. That’s where we
step in by providing you with a choice of Current Account options that facilitate seamless
transactions and help you with faster mobilization of funds.
With HDFC Bank Current Account, avail the freedom of multi-location Banking! You can have
the power of multi-location access to your account from our wide network (537branches in 221 cities)
What’s more; you can do all your Banking transactions from the comfort of your office or home, by
using our Direct Banking Channels.
We make it our business, to help you with your business, by offering you a current Account
loaded with all the benefits you need, to stay ahead of your competition
Plus Current Account
In today's fast-paced world, your business regularly requires you to receive and send funds to
various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city
banking with a single account and access to more than 228 cities.
From special cheques that get treated at par with local ones in any city where we have a branch,
faster collection of outstation cheques (payable at branch locations), free account to account funds
transfer between HDFC Bank accounts
to Free inter-city clearing of up to 100 lakhs per month, our priority services have become the
benchmark for banking efficiency.
Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000.
Read on to know the powerful plus points of the HDFC Bank plus Current Account.
Features and Benefits
Payable –at-Par cheque book Facility
Free inter-city funds transfer across our network up to Rs. 100Lachhs per month
Free Pay Order /Demand Drafts Payable at HDFC Bank location
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Free online, real-time Net Banking
Free collection of outstation cheques, payable on HDFC Bank locations
Huge savings on Bank charges.
HDFC Bank Trade
Current Account is ideal for small funds transfer across various cities in the country. While
Trade Account is suitable for small businessmen and Traders.
Features and Benefits
Payable –at-Par cheque book facility
Free inter-city funds transfer across our network up to Rs. 25Lachhs per month
Free Pay Order /Demand Drafts Payable at HDFC Bank location
Free online real net banking.
ATM Card for Individuals/Sole Proprietorships
24-Hour Phone Banking access(please check for availability city)
A Trade Current Account requires an average quarterly balance of Rs.40, 000/- only
Premium Current Account
You can avail benefits of inter-city banking account with Premium Current Account that requires
an average quarterly balance of only Rs. 25,000 offers Payable-At-Par cheque book facility &
FREE inter-city clearing transactions across our network up to Rs.25 Lacks per month
A Current Account with the benefits of accessing your account from a large network of branches,
and through direct access channels the phone, mobile, Internet and through the ATM.
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Regular Current Account
The Regular Current Account requires an average quarterly balance of Rs.10,000/-only
Besides a free ATM Card and easy accessibility, you first 50 cheque leaves are also offered
FREE.
Free Services Offered to Premium & Regular Current Account holders:
One ATM Card Per account (only for individuals / Sole Proprietorships)
o Replacement in case of damaged Cards
o Monthly statement.
Online, real –time Net Banking
24-Hour Phone Banking access (please check for availability in your city)
Note:
As per CBDT Circular ,for cash deposits of Rs. 50,000 or above, PAN number isRequired All charge mentioned are exclusive of Services tax and Education. Cash deposits at non-home branch are not allowed.
VALUE ADDED FEATURES
CMS (collections from various locations , even non branch locations) Continuous Stationery Bulks DDs Cheque writing facility RTGS Take advantage of our Direct Banking Channels
Net-Banking- Manage your accounts from anywhere , anytime Phone Banking –Talk to a Phone Banking agent for all yourqueries
Mobile-Banking- Access, transact & inquire about your account Phone-Banking- Talk to a Phone Banking agent for all your queries Mobile-Banking-Access, transact & inquire about your account . Insta-Alerts –Get account updates on mobile or e-mail.
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Trade Services
We offer the following Trade Services options which give the flexibility in closing a deal faster
and maintaining goodwill with your business associations
We offer a wide range of export services designed to assist your business. With our strong net
work worldwide, we make your export business hassle free. You can avail the following facilities:
Import Documents against Payment(DP)
Import Documents against Acceptance(DA)
Advance Remittances
Import Bills under Letter of Credit
Letter of Credit
Avail our Letter of Credit (L/C’S) for your business requirements. Our Letter of Credit issued is
valued and accepted worldwide .
Bank Guarantee
We issue Bank Guarantee on your behalf to fulfill your obligations under any business contract
and help your business grow along with a sound relationship with HDFC Bank.
With our Trade Services options you can enjoy advantage like Faster Payments, Competitive
Exchange Rates, Speedy Remittances, Improved Cash Flows and Competitive Charges.
Foreign Exchange Products for your Business Travel Abroad
Foreign Currency Drafts Travelers Cheques Foreign Currency Cash Forex-Plus Card (a charge Card cin Foreign Currency) Telegraphic Transfer (SWIFT)
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Business Banking
Business banking division caters to the financial requirements of small and Medium
entrepreneurs. Whatever be your business, the next-door retail shop or a manufacturing unit, we
would be happy to offer financial solutions with a decision time of just 7 working days.
Working Capital and Term Loans
We at HDFC Bank .understand that expanding and growing your business to the heights of
success is a dream of every entrepreneur .To fulfill this dream, we offer
Cash Credit
Overdrafts (Secured/Unsecured)
Export Finance
Pre Shipment Finance
Post Shipment Finance
Bill Discounting
Terms Loans
FIXED DEPOSITS
Our Fixed Deposits offer flexibility, Security & higher returning a single bundle of investment.
Regular Fixed Deposit
Flexibility in opting period of deposits, maturity and payment instruction, principal amount and
rollover mode
Option of going for single interest/Compound Interest& thus re-investing the principal to
let your money earn “More”
Sweep-in Facility; Link your Fixed Deposits to your Savings Account and use it to fall
back on, in case of emergencies.
Super Saver Facility; Enjoy a high rate of Interest along with the liquidity of a Savings
Account. Avail of an overdraft facility of up to 75% of the value of your Fixed Deposits.
No penalty for premature withdrawals
5Year Tax Savings Fixed Deposits;- A Fixed Deposits with a Difference!
Minimum Amount :Rs.100/-:Maximum Amount: Rs.100,000/-(in a Financial Year)
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Tenure:5 Years
Avail of dual benefits in terms of attractive interest rates alongwith tax exemption under
section 80c of the Income Tax Act,1961
DOMESTIC TERM DEPOSITS
Period AmountInterest Rate
(per annum)
**Senior Citizen
Rates (per annum)Effective From
7 - 14 daysBelow Rs.15
Lacs1.00% 1.50% July 11, 2010
15 - 29 daysBelow Rs.15
Lacs3.00% 3.50% July 11, 2010
30 - 45 daysBelow Rs.15
Lacs5.50% 6.00% March 3, 2010
46 - 60 daysBelow Rs.15
Lacs5.50% 6.00% March 3, 2010
61 - 90 daysBelow Rs.15
Lacs5.50% 6.00% March 3, 2010
91 - 99 daysBelow Rs.15
Lacs6.00% 6.50% March 3, 2010
100 - 101 daysBelow Rs.15
Lacs7.50% 8.00% March 3, 2010
102 - 180 daysBelow Rs.15
Lacs6.00% 6.50% March 3, 2010
6 months 1 day -
6 months 14 days
Below Rs.15
Lacs6.75% 7.25% March 3, 2010
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6 months 15 days
- 6 months 16 days
Below Rs.15
Lacs8.00% 8.50% March 3, 2010
6 months 17 days
- 1 year
Below Rs.15
Lacks6.75% 7.25% March 3, 2010
1 year 1 day - 1
year 14 days
Below Rs.15
Lacs8.00% 8.50% March 12, 2010
1 year 15 days - 1
year 16 days
Below Rs.15
Lacs9.25% 9.75% May 11, 2010
1 year 17 days - 2
years
Below Rs.15
Lacs8.00% 8.50% March 12, 2010
2 years 1 day - 2
years 14 days
Below Rs.15
Lacs8.25% 8.75% March 12, 2010
2 years 15 days -
2 years 16 days
Below Rs.15
Lacs9.50% 10.00% March 12, 2010
2 years 17 days -
3 years
Below Rs.15
Lacs8.25% 8.75% March 12, 2010
3 years 1 day - 5
years
Below Rs.15
Lacs8.25% 8.75% March 12, 2010
5 years 1 day - 8
years
Below Rs.15
Lacs8.25% 8.75% March 12, 2010
Interest rates are subject to change from time to time. Applicable interest rates will be
given as on the date of receipt of the funds by the bank. When booking FD through NetBanking
please note the actual interest rate being applied on the "Confirm" screen. This screen appears before
you confirm your request for opening a new FD.
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** Only Senior Citizens / Retired Personnel (60 years and above) who are Resident
Indians are eligible. The special rates are applicable only for INR deposits.
*** The FD rate applicable for a monthly interest option will be a discounted rate over
the standard FD Rate. Please contact the nearest Branch for further information.
The base rate is applicable to deposit of less than Rs 15 lacs
****For interest rates on Fixed Deposits for Rs. 15 Lacs and above, please contact your nearest
HDFC Bank branch. The base rate applicable for the tenure for which the deposit has been in
force with the Bank
Enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super
Saver Facility on your savings account. Avail of an overdraft facility of up to 75% of the value of
your Fixed Deposit.
Get the best of both worlds.
Features & Benefits: It's like two Accounts working in tandem to give you better returns.
Choose between a Savings Account or Current Account to link to your Fixed Deposit.
Avail an overdraft facility to supplement your household or business needs.
Pay back with interest only on the drawn amount, while the remaining Fixed Deposit
continues to earn you interest.
Flexibility in altering period of deposit, maturity and payment instructions, principal
amount and rollover mode.
Senior citizens enjoy a higher rate of interest on their Fixed Deposits.
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Pure and Reliable
Mudra is great value for money. These 24 K Gold Bars are made in Switzerland and come with
an Assay certification, signifying the highest level of purity as per international standards.
Convenience
Mudra Gold Bars are currently available in 2.5, 5 g, 10 g, 20g and 50 g denominations. The Gold
Bars are presented in tamper-proof certicard packs.
Price
Mudra Gold Bars are competitively priced based on the daily prices in the international bullion
market. The price is inclusive of customs duty and other charges involved in the retailing of gold
bars.
Today’s Gold bar prices are: Heart Shape: , 5g , 10g , 20g , 50g
Buy Now
Mudra gold bars are available at over 537 HDFC Bank branches across 220 cities.
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HDFC SECURITIES
3-IN-1 ADVANTAGE ACCOUNT
SAVINGS, DEMAT & TRADING
The Account gives you the power to:
Transact in real- time without risk of transaction delays.
Receive instant order and trade confirmation.
Get live quotes, market trends and economy updates as it happens.
Get timely recommendations on Equity, Mutual Funds and IPO from our high quality
research team.
Pay lower brokerage on higher trading volume.
Services
The 3-in-1 Advantage Account is well –suited for investors who are starting out as well as the
experienced trader. You can trade on both BSE and NSE through the internet or over the pho ne.
Our services include:
Cash-n- Carry Transactions
The traders result in delivery of shares into your Demat Account .You can sell these shares after
the delivery is realized in your account.
Day Trading
These are traders that are squared-off on the same day i.e. if you buy shares, you can sell them on
the same day. These traders do not result in delivery .
Derivatives
Trade futures and option online.
Subscribe to IPOs
You also have access to a dedicated Customer Services Desk for any help needed during trading.
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HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac
Demat Accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical documents
that get mutilated or lost in transit.
HDFC BANK is Depository particpant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).
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Features & Benefits
As opposed to the earlier form of dealing in physical certificates with delays in transaction,
holding and trading in Demat form has the following benefits :
Settlement of Securities traded on the exchanges as well as off market transactions
Shorter settlements thereby enhancing liquidity
Pledging of Securities.
Auto credit of Rights / Bonus / Public Issues / Dividend credit through ECS
Auto Credit of Public Issue refunds to the bank account
No stamp duty on transfer of securities held in demat form
No concept of Market Lots
Change of address, Signature, Dividend Mandate, registration of power of attorney,
transmission etc. can be effected across companies held in demat form by a single
instruction to the Depository Participant (DP).
Holding / Transaction details through Internet / email
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Whatever the occasion, our range of Personal Loans can help. The procedure is simple,
documentation is minimal and approval is quick.
Features & Benefits
Borrow up to Rs 10,00,000 for any purpose depending on your requirements.
Flexible Repayment options, ranging from 12 to 48 months.
Repay with easy EMIs.
One of the lowest interest rates.
Hassle free loans - No guarantor/security/collateral required.
Speedy loan approval.
Convenience of service at your door-step. Customer privileges
If you are an HDFC Bank account holder, we have special rates for you.
If you are an existing Auto Loan customer with a clear repayment of 12 months or more from
any of our approved financiers or us, you can get a hassle free personal loan (without income
documentation).
If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months
or more, we can Top-Up your personal loan.
Credit-Shield
In case of death or total permanent disability of the loanee, the loanee/nominee can avail of the
Payment Protection Insurance (Credit Shield) which insures the principle outstanding on the loan
upto a maximum of the loan amount. Principle outstanding is defined as the amount of loan
outstanding (not including any arrears in payment or interest thereon) at the Date of Loss, having
accounted for payments made and interest accruing as determined in the Policy. Hence, the
amount covered does not include any principal added because of non - payment of EMI and also
will not include interest/ accrued charges.
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Personal-Accident-Cover
In order to ensure that your family is taken care of we also offer a Personal Accident cover of Rs.
2, 00,000 at a nominal premium.
Premium will be charged for both these products which will be deducted from the loan amount at
the time of disbursal. A transaction fee of Rs.350 will also be deducted at the time of disbursal. Please
note that service tax @ 12.36% will also be charged.
Features & Benefits
Loans up to Rs. 7.5 Lakhs for Education in India and up to Rs. 15 lakhs for Education abroad!
Attractive interest rates.
Repayment to start 1 year after course completion / 6 months after obtaining employment
(whichever is earlier)
Loan available up to tenure of 7 years including moratorium period.
Hassle free loans and speedy approvals.
Convenience of service at your doorstep.
Loans available for other course related expenses also!
Special privileges
Loans disbursed directly to the educational institution. Loan to be released as per fee schedules of institutes. Loans available for short duration/ job oriented courses also.
GOLD DEBIT CARD
HDFC Bank’s Easy Shop Gold Debit Card provides you a world of privileges that match your
status and lifestyle
Cash Back of Re.1/-for every Rs. 100/-spent
Zero Surcharge at Petrol Pumps
Insurance Cover
Death Cover by Air/Road- Sum assured Rs.5,00,000/-
Fire &Burglary – Cover of Rs .50,000/-for the items purchased under Debit Card
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Loss of Baggage Insurance –Cover of Rs.20,000/-
Special offers at Premium outlets, Hotels and Restaurants
Zero Liability: No liability to any fraudulent POS Transactions on Debit Card that takes
place 30 days prior to reporting the card loss, upto Rs.1,00,000/-
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HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of
its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your
status and lifestyle
Features & Benefits
Cash Back of Re. 1 for every Rs. 200 spent*: For every Rs. 200 that you will spend , you will
receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all
times of the year!!!
Specialized Services*: A unique service number will be available for Woman's Debit Card
customers to avail information / booking for the services listed ahead. Just call, quote your card
number and use any of the services. These services are subject to availability and rendered on a best
effort basis
Entertainment assistance :
Dining Referral and Reservation Assistance
Flower & Gift Delivery
Movie Tickets
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Home assistance:
Financial Planning & Advisory Services Assistance
Electrical & Electronic Gadget Repair Assistance
Pest Control Assistance
Home Cleaning Assistance
Wellness :
Medical Check Up Packages
Nursing Care Arrangement
50% discount on locker fee*: You will be entitled to a 50% discount on locker fee for the 1st
year. This waiver would be applicable for only one locker per card. In order to avail of the discount,
please show your Woman's Advantage Debit Card at the branch.
Special discount on purchase of Gold Bars*: Preferential pricing will be given to you on
purchase of Gold Bars. In order to avail of the special discount, pleas show your Woman's Advantage
Debit Card at the branch.
Insurance cover: You will be entitled to Personal Accident insurance cover of 2 lacs.
Zero Liability: You will not have any liability to any fraudulent Point of Sale transactions on
the debit card, which take place up to 30 days prior to reporting the card loss.
Free Bill Pay: You will not be charged for Bill Pay Service, normally chargeable at Rs. 100 p.a.
Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant establishments for
shopping.
31
The best features you could ask for in a credit card. Combined with all the services offered by a
world-class bank. Get all with the HDFC Bank International Silver Credit Card.
Spending money was never so rewarding!
Features & Benefits
All-purpose-credit-card
The HDFC Bank Silver Credit Card can be used for all your requirements, be it shopping, eating out,
holidaying, and fuelling up your vehicle, railway ticket reservations - just about any financial
requirement, planned or on impulse.
Earn-while-you-spend
With us, money spent is money earned. For every Rs. 150 you spend, you earn 1 reward points. You
can redeem these accumulated points for exciting gifts and offers from our exclusive rewards
program.
Add-on-cards
Get up to 3 add-on cards for your spouse, parents, siblings (own brother/sister), son and/or daughter
(over 18 years) and allow them to enjoy the many benefits of the HDFC Bank International Silver
Credit Card
Zero-liability-on-lost-card
In case your credit card gets lost, report it immediately to our 24-hour call centre. After you do this,
you carry zero liability on any fraudulent transactions on your card.
Widely-accepted
Accepted at over 110,000 merchant establishments across India and Nepal and close to 18 million
merchant establishments around the world
32
It's overloaded with travel benefits discounts, cashback offers, air miles redemption.
Get an HDFC Bank International Gold Card and get introduced to a whole new world of privileges.
Features & Benefits
Up to 5% cash back on air ticketing
5% Cash back on domestic air transactions above Rs.10,000 through domestic airline
websites (2.5% on transactions below Rs.10,000).
5% cash back on train ticketing
Get 5% cash back on railway tickets purchased with your HDFC Bank Gold Credit Card at the Indian
Railways website www.irctc.co.in.
Discounts on hotel tariff
A whopping 50% discount on hotel stays across India and abroad, through complimentary Silver
Benefit membership to the International Business Traveler’s Club.
You are also eligible for up to 50% discounts for car rentals from Hertz-Rent-a-Car, through the
IBTC membership
Special Offers from HDFC Bank
8 paise discount on foreign exchange selling rates.
Locker facility at 20% discount on applicable rates.
4% off on applicable rates of Gold bars.
Waiver of 1st year Annual Maintenance Charges on Demat account and 50% waiver in
subsequent years.
0.25% off on applicable Auto loan rates.
Insurance benefits
Air Accident Cover of Rs 25 lakhs.
33
Rail/road accident covers of Rs 3 lakhs.
Accident Hospitalization covers of Rs 50,000.
Zero liability on lost/stolen card (after reporting).
W.e.f. 1 June 2007, all other complimentary insurance covers will be withdrawn
Greater reward points
Earn 2 reward points per Rs 150 spent on the Gold Credit Card and redeem them against air
miles across leading airlines. The air and train transactions earning cash back will not be eligible for
reward points.
Rewards points redemption
After earning all those reward points on your HDFC Bank Gold Credit Card, redeem them for
exciting gifts and services! You could even convert them to airline miles with India's leading
airlines through the My Rewards programmed
Worldwide acceptance
Accepted at over 23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India.
34
Revolving credit facility
Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill
amount or any higher amount whichever is convenient and carry forward the balance to a better
financial month. For this facility you pay a nominal charge of just 2.95% per month (35.4% annually)
(2.90% per month 34.8% annually for HDFC Bank Account Holders).
Free Add-on card
You can share these wonderful features with your loved ones too - we offer the facility of an
add-on card for your spouse, children or parents. Allow us to offer add-on cards to you FREE OF
COST with our compliments.
Are you a frequent flyer for business or often holiday abroad? Are you an importer/exporter of
foreign and Indian goods?
If you need to deal in foreign currency and keep tabs on exchange rates every now and then,
transfer monies to India, make payments etc., HDFC Bank has a range of products and services that
you can choose from to transact smoothly, efficiently and in a timely manner.
We offer the following Foreign Exchange Products and Services.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting money.
35
Travelers Cheques
Foreign Currency Cash
Foreign Currency Drafts
Cheque Deposits
Remittances
Cash to Master
Trade Services
Forex Services Branch Locator
Important guidelines and schedules
All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines.
Depending on the nature of your transaction or point of travel, you will need to understand your
Foreign Exchange limits.
RBI Guidelines
Forex Limit
Non HDFC Bank Ac
KID’S ADVANTAGE ACCOUNT
Who can Apply?
All kid’s under 18years of age
The parents/ guardian * must have a savings Account with us . if not, he/she needs to
open a new Savings Account
Natural guardian only . Legal guardian would be permitted to open accounts under this
product only on an exceptional basis.
Features & Benefits
Free ATM/Debit Card for kid’s between 7-18 years of age
Free Starting instructions(SI) on the parent /guardian Savings Account
Investment tie –ups with Mutual Funds for the secured future of child
Personalised cheque book in the name of the child
36
Free Insta Alert
Free Mobile Banking ,phone Banking& Net Banking facilities
Average Quarterly Balance (AQB) Requirement
FD of Rs. 10,000/- in the name of the child with a Zero Balance savings Account,
mandatory at the time of account opening
In case FD balance falls below Rs. 10,000/- then AQB of Rs.5,000/- to be maintained
Average Quarterly Balance (AQB) Non Maintenance charges
If AQB less than 5,000/-& FD balance is less than 10,000/-
Than Rs. 300/- charged per quarter.
INSTITUTE & SCHOOL FEE COLLECTION
Who can Apply?
Any Institute with minimum 500 students .
Average annual fee of Rs. 10,000/-per student .
Features & Benefits
Allows parents to walk – in to ‘select branches’ of HDFC Bank to deposit the fee .
Daily report of the fee collection is sent to the school by CMS Team through an email.
The Institute /School can avail of Trust Account benefits by opening a Trust Account.
Average Quarterly Balance (AQB) Requirement
The Institute account can be Trust Account or normal Savings Account . The AQB requirement
will be as per the product availed .
Average Quarterly Balance (AQB) Non –maintenance charges
Non –maintenance charges for the required AQB will be as per the product availed.
37
Who can Apply?
-Existing Customer- having 1 or more accounts (Savings/NRI/Salary Reimbursement/Kid’s
Account) with us at the same or different branches.
-New Customer – You and family* members intend to have 1 or more accounts with us.
Spouse, father , mother, son, daughter, brother, sister, grand parents or grand children
Eligibility
Upto 4 Savings Accounts of individuals can be clubbed under a single family Savings Group.
The Family Savings Group links together upto four individual HDFC Bank accounts (same
family) under a single group. Take advantage of the group Average Quarterly Balance (AQB) and
operate your individual accounts without worrying about minimum balance.
Features & Benefits
All account holders can operate their account freely without worrying about their minimum
balance.
Family members with NRI status can also be part of the group.
Get 5 Free Cash withdrawal transactions on SBI ATMs per group per month.
Up to 2 free DD's/ MC's on HDFC Bank locations per account per month (max. up to Rs.
25,000/- per instrument per day).
Free International Debit Card for all account holders till the account is part of the Family group.
(NRO Accounts will be issued only ATM cards)
Free Bill Pay & InstaAlerts facility for all account holders till the account is part of the Family
Group.
Free Standing Instructions for investment into Mutual Funds.
Free One View to access all your accounts.
-Payable-at-par facility at a nominal cost for all accounts in the family group.**
**Available only on request at the branch
-Cash delivery @ Rs. 50/- per delivery***
38
DIRECT BANKING CHANNELS
Phone Banking
Avail the convenience of operating the Bank Account from the comfort of home ,
without even vesting the branch.
Carry out multiple transactions with great ease. e.g.:
Balance enquiry
Details of last 5 transactions
Cheque status enquiry and request for stop cheque
Cheque book & statement request
Information on various product offering & lots more
39
Net Banking
Your account is where you are!
Get real- time information at the click of a button
HDFC Bank’s Net Banking is secure. It uses industry standard technologies &
infrastructures, thus ensuring the safety & security of the transactions.
Following are some of the transactions that can be carried out;
View Account Balance & Securities
Transfer Funds between accounts
Create Fixed Deposit online
Request for a Demand Draft
Pay Bills
Order for a cheque book, request stop payment on a cheque and lots more!
Mobile Banking
Access the Bank Account with HDFC Bank’s unique Mobile Banking Service.
-Mobile Banking works through asset of text messages (SMS) without even making a call.
-All one needs to do is to type in the specified code for the
-Transactions as a text message and spend it to 676712
HDFC Bank’s Mobile Banking service provides a host of features at your finger-tips through
SMS:
Get the balance details.
Obtain last 3 transactions details
Request for a cheque book
Stop a cheque payment
Enquire cheque status
Request an account statement
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CONVENIENCE BANKING
Bill Pay
No need to stand in long queues and wast time and effort for paying bills through Utility
company’s counters.
Register for Bill Pay and pay Utility Bills through ATM/Net Banking /Phone
Banking/Mobile Banking.
-Pay at your convenience any time, from any where
-Over 80 utility companies covered , comprising of Electricity, Telephone, Mobile, Gas
and Life Insurance companies across India
-Register online on HDFC Bank website or by submitting the BillPay registration from
the branch.
Insta Alert
Be updated on your accounts while on the move. Receive alerts for transactions in your account.
SMS alerts on mobile phone or e-mail alerts on e-mail or both
Choose from the various alert types :
Debit transactions greater than Rs. 5,000/- ,Rs.10,000/-, Rs. 20,000/-, Rs.50,000/-
Credit in account greater than Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/- ,Rs. 50,000/-
Account Balance below Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/- ,Rs. 50,000/-
Weekly account balance
Utility bill payment due alert
POS(point of sale) alerts
Register online through Net Banking or by submitting the Insta Alert registration form at
the branch.
Features&
benefits
Kid’s
Advantage A/C
Savings
Regular Plus
A/C
Savings
Plus A/C
Savings Max A/C
A Q B
Requirement(Rs.)
5,000/- 5,000/- 10,000/- 25,000/-
FD Requirement 10,000/- 50,000/- 50,000/- 1,00,000/-
41
for Nil AQB (Rs.)
International
Debit Card
p.a. (Rs.)
Free Maestro
Debit Card (for then
kid )
100/- Free(for
all applicants)
Free (for all
applicants)
Women’s
Advantage Debit
Card Charges p.a.
(Rs.)
x 150/- 150/- Free (for all
applicants)
Gold Debit Card
Charges p.a. (Rs.)
x 500/- 500/- Free for primary
applicant. Rs. 250/-for
the other applicants
Free Account
Statement
Quarterly Quarterly Quarterly Monthly
PAP (Free
Issuance)
x Free usage
up to
Rs.50,000/-
per month.
Above
Rs.50,000/-
Charge of
Rs.2.90 per
thousands for
the entire
amount
Free usage up
to Rs.50,000/-
per month.
Above
Rs.50,000/-
Charge of
Rs.2.90 per
thousands for
the entire
amount
Free usage upto
Rs.1,00,000/- per
month. Above
Rs.1,00,000/- Charge
of Rs.2.90 per
thousands for the
entire amount
Free DD/MC (at
home branch)
x x Free upto
Rs.25,000/- per
DD/MC on
HDFC Bank
locations
Free upto
Rs.50,000/- per
DD/MC on HDFC
Bank locations
Free x 3 per month 2 per month Unlimited
42
transactions on
SBI/Andhra Bank
ATMs
Free
transactions on
other Bank
ATMs
x x 3 per month Unlimited
Bill Pay Charges
p.a.
Rs.100/- Rs.100/- Free Free
InstaAlert Free Free Free Free
Phone Banking,
Net Banking,
Mobile Banking&
NEFT
Free Free Free Free
Waiver on
Locker Rental
x x 25% discount
for the first year
50% discount
for the first year
Education
Insurance
Free
Education
Insurance of
Rs.
1,00,000/- in
the event of
death by
accident of the
parent/ guardian
x X X
Sweep –out
facility
When the
balance in the
Kid’s A/C
reaches
Rs.10,000/-
the amount
x X Balance in
excess of
Rs.50,000/- is
swept out into
an FD with a
min. value of
43
in excess of
Rs.5,000/- is
swept out into
an FD for
a period of 1
year and 1day
Rs.25,000/- for a
period of 1 year
and 1day
COMPRATIVE CHART
DOCUMENTATION FOR RESIDENT INDIVIDUALS
Documents for establishing Proof of address:
1 .Passport (not expired)
2 .Permanent Driving license (not expired)
3. Telephone bill/electricity bill of public and approved private operators in the state (not older
than 3 months from the date of account opening)
4. Bank Account Statement of a PSU/Private Sector/Foreign bank 9not older than 3 months
from date of account opening ).
5. Election Card/Voters ID (if it has address).
6. Ration Card
7. Letter/Monthly outgoings bill(only from registered societies)*
8. Copy of titles deeds (wherein original title deeds are registered and stamped)
9. Lease/Leave & License agreement /Rent agreement copy duly stamped accompanied by CPV
done by branch staff.
10. Latest property tax bill/property tax paid receipt.
11. Senior Citizens Card issued by the State /Central Government of India (if it has address).
12. Mobile post –paid bill of public /private operators in the state.
13. Consumer gas connection card/book OR latest pipe gas bill*
14. Domicile certificate with communication address issued by Municipal Corporation.
44
15. Arms License issued by the State / Central Government of India authority which contains
photograph of the applicants.
16. Photo ID Card with photograph (issued by J&K & Goa State Government).*
17. Photo Social Security Card issued by Central /State Government /Union territories
18. Pension Payment Card issued by State / Card Government of India with Photograph of
applicant.
19. IRIS scanned household card with photograph (issued by Andhra Pradesh Government).
the letterhead, which carries the society’s registration number. The letter should
carry the applicant’s name & full address as well as the signatories’ full name ,
designation (Secretary, President ) and address (Maintenance charges receipt
issued by the society NOT acceptable .
Gas charges paid receipt not acceptable .
ID Card issued by the State Government of J&K is acceptable if they carry the
connotation-’government of Jammu &Kashmir , Civil Secretariat, Srinagar/
Jammu’
Mutual funds are funds that pool the money of several investors to invest in equity or debt
markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.
Funds are selected on quantitative parameters like volatility, FAMA Model, risk adjusted returns,
rolling return coupled with a qualitative analysis of fund performance and investment styles through
regular interactions / due diligence processes with fund managers.
Advantages of Investing into a Mutual Fund
The reason that mutual funds are so popular is that they offer the ability to easily invest in
increasingly more complicated financial markets. A large part of the success of mutual funds is also
the advantages they offer in terms of diversification, professional management and liquidity.
Flexibility - Mutual Fund investments also offers you a lot of flexibility with features such as
systematic investment plans, systematic withdrawal plans & dividend reinvestment.
45
Affordability - They are available in units so this makes it very affordable.
Because of the large corpus, even a small investor can benefit from its
investment strategy.
Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your
money at any point of time at the current NAV
Diversification - Risk is lowered with Mutual Funds as they invest across different industries &
stocks.
Professional Management - Expert Fund Managers of the Mutual Fund analyze all options
based on experience & research
Potential of return -The fund managers who take care of your Mutual Fund have access to
information and statistics from leading economists and analysts around the world. Because of this,
they are in a better position than individual investors to identify opportunities for your
investments to flourish.
they are in a better position than individual investors to identify opportunities for your
investments to flourish.
Low Costs - The benefits of scale in brokerage,
custodial and other fees translate into lower costs for investors.
Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the
investor's interests.
Your relationship managers will help you determine your investment profile, which will be
based on your needs, possibilities and expectations. Your investment profile will help you choose the
type of investments that suits you the best.
TYPES OF MUTUAL FUND
Open –ended Fund/ Scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. They
key feature of open-end scheme is liquidity.
Professional Management - The primary advantage of funds (at least theoretically) is the
professional management of your money. Investors purchase funds because they do not have the time
4
46
or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a
small investor to get a full-time manager to make and monitor investments.
· Diversification - By owning shares in a mutual fund instead of owning individual stocks or
bonds, your risk is spread out. The idea behind diversification is to invest in a large number of a~sets
so that a loss in any particular investment is minimized by gains in others. In other words, the more
stocks and bonds you own, the less anyone of them can hurt you (think about Enron). Large mutual
funds typically own hundreds of different stocks in many different industries. It wouldn't be possible
for an investor to build this kind of a portfolio with a small amount of money.
· Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a
time, its transaction costs are lower than you as an individual would pay.
· Liquidity - Just like an individual stock, a mutual fund allows you to request that your
shares be converted into cash at any time.
· Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual
funds, and the minimum investment is small. Most companies also have automatic purchase plans
whereby as little as $100 can be invested on a monthly basis.
DISADVANTAGES OF MUTUAL FUNDS :
Professional Management- Talk about this in details in a later section .Did you notice how we
qualified the advantage of professional management with the world “theoretically” ? Many investors
debate over whether or not the so-called professionals are any better than you or I at picking stocks.
Management is by no means infallible, and an even if the fund loses money, the manager still takes
his/her cut.
Costs- Mutual funds don’t exist solely to make your life easier – all funds are in it for a
profit .The mutual fund industry is masterful at burying costs under layers of jargon. These costs are
so complicated t5hat in this tutorial we have devoted an entire section to the subject.
Dilution- It’s possible to have too much diversification (this is explained in our article entitled
“Are You Over –Diversified?”). Because funds have small holdings in so many different companies ,
high returns from a few investment s often don’t make much difference on the overall return .
47
Dilution is also the result of a successful fund getting too big. When money pours into funds that have
had strong success, the manager often has trouble finding a good investment for all the new money.
Taxes – When making decisions about your money, fund managers don’t consider your personal
tax situation, For example , when a fund manager sells a security ,a capital –gain tax ix triggered,
which affects how profitable the individual is from the sale . It might have been more advantageous
for the individual to defer the capital gains liability.
48
STANDARD CHARTERED MUTUAL FUND
Standard Chartered mutual fund is promoted by banking giant Standard Chartered and
exclusively focuses on debt schemes. The fund started as ANZ Grind lays Mutual Fund and was later
renamed as Standard Chartered Mutual Fund after the takeover of Grind lays Bank by Standard
Chartered
Here is a list of mutual funds of Standard Chartered:
Equity:
Standard Chartered Classic Equity Fund
Standard Chartered Premier Equity Fund
Standard Chartered Imperial Equity Fund
Standard Chartered Enterprise Equity
Debt:
Grind lays Super Saver Income Fund - Investment Plan
Grind lays Super Saver Income Fund - Medium Term Plan
Grind lays Super Saver Income Fund - Short Term Plan
Grind lays Dynamic Bond Fund
Grind lays Cash Fund
Grind lays Government Securities Fund - Investment Plan
Grind lays Government Securities Fund - Short Term
Grind lays Floating Rate - Short Term Plan
Grind lays Floating Rate Fund - Long Term Plan
Standard Chartered All Seasons Bond Fund Fixed-Maturity-6th-Plan-NFO
ABOUT SIP WHAT IS SYSTEMATIC INVESTMENT PLAN (SIP)?
49
A Systematic Investment Plan (SIP) is an option that allows you to invest a fixed sum at
periodic intervals on specific dates.
This involves making investment of fixed sums of money, in a particular scheme, at
predetermined periodical intervals of time. For instance, you could invest Rs .l 000 every month into
a particular scheme. Some investor find it difficult to decide when to invest a lump sum amount for
fear that they will invest when the NA V s are high. As this technique delivers the lowest average
cost per unit, it is ideal for such investors. It is also beneficial for investors who wish to invest small
amounts at regular intervals.
Why SIP?
A Systematic Investment Plan works for you in three ways:
• It helps you to save regularly and thus inculcates a sense of discipline.
• It harnesses the power of Compounding.
It is the best possible way you to reign in impulsive buys-and-sells that otherwise one is
gripped by in times of market volatility. - Rupee cost averaging.
Power of compounding:
In reality, further the need deeper is the urge to postpone. But the fact is the longer you leave
your money invested, the faster it will grow. When your returns begin to earn money and those
returns start to earn ... small amounts of money can snowball very quickly. Compounding being
the tool that allows you to make the most of small amounts invested for long periods
To find out how you can harness compounding, have a go at this Cost of Delay calculator.
It tells you how much more you need to save each month for each year of delay.
Rupee cost averaging
A now familiar concept, it tells you how effective disciplined investing on specific dates is, as
compared to lump sum investing on random dates.
50
This could be easily understood through this illustration:
Amount NAV Units Cum. Cum. Value of
invested units amount investment
1000 10 100.00 100 1000 1000
1000 9 111.11 211 2000 1900
1000 10 100.00 311 3000 3111
1000 11 90.909 402 4000 4422
1000 12 83.333 485 5000 5824
1000 13 . 76.923 562 6000 7310
1000 17 58.824 621 7000 10559
1000 14 71.429 693 8000 9695
1000 11 90.909 783 9000 8618
1000 10 100.00 883 10000 8834
1000 12 83.333 967 11000 11601
1000 15 66.667 1033 12000 15502
Total amount = Rs.12000, Total units = 1033 Average cost per unit =
Rs.120000/l033 = Rs.11.60 Average price per unit = Rs.12
51
PRODUCTS OF HDFC STANDARD LIFE INSURANCE COMPANY
As a parent, your priority is your child’s future and being able to meet your child’s dreams and
aspirations. Today, providing a good education, establishing a professional career or even a modest
wedding is expensive. Costs are increasing fast. Just imagine how much you’ll need when your child
takes these important steps in life! Plan today to ensure a bright future for your child. Start building
savings today Without HDFC Children’s Plan. So that your child is able to lead a life of respect and
dignity with a secured financial future.
HDFC CHILDREN’S PLAN
The HDFC Children’s Plan gives you :
Invaluable financial support to your child
Helps you customize an ideal plan for your child
Provides you multiple options for multiple benefits
The HDFC Children’s Plan is designed to secure your child’s future by giving your child (the
beneficiary) a guaranteed lumps um, on maturity or in case of your unfortunate demise, early in the
policy term. The premiums paid by you are invested by the company to give you good long term
returns. The plan receives the simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance of the
underlying investment.
52
3 EASY STEPS TO YOUR OWN PLAN
STEP 1 Choose the amount of targeted savings and
policy term using our Financial Planning Tool.
STEP 2 Choose any one of the 3 plan options as per
your child’s requirement.
STEP 3 Work out the premium payable and sum
assured with our Financial Consultant.
STEP 1: Choose The Amount Of Targeted Savings
This plan gives the flexibility to structure the ideal plan for child.
Estimate the money, which might require for child at any one of the milestones in his or her
future.
Choose the amount of targeted savings and policy term using the Financial Planning Tool
available with our Financial Consultant.
STEP 2: CHOICE OF 3 PLAN OPTIONS
Let’s assume that you are the insured parent and your child the beneficiary, who will receive the
benefits as per your plan option. You can choose any one of the three plan options at the start of the
policy.
Accelerated Benefit Plan Death Benefit OR Maturity Benefit
53
Maturity Benefit Plan Death Benefit OR Maturity Benefit
Double Benefit Plan Death Benefit OR Maturity Benefit
Plan Option Death Benefit
(On death of insured parent during the policy term)
Maturity Benefit
Accelerated Benefit Plan
We will pay the Sum Assured + Bonuses Declared.
The Policy terminates immediately.
We will pay the Sum Assured + bonuses Declared.
Maturity Benefit Plan
Your family need not pay any further premiums and policy continues.
We will pay the Sum Assured + Bonuses Declared.
Double Benefit Plan
We will pay the Sum Assured. Your family need not pay any
further premiums and the policy continues.
We will pay the Sum Assured + Bonuses Declared.
STEP 3: PREMIUM YOU NEED TO PAY
Once you have chosen the amount required and the Plan Option, get an indication of
corresponding premium you need to pay. The table below shows the indicative Premiums for a male
life assured paying annual premiums for a Rs. 5 lakh Sum Assured policy with the policy maturing
when the child is 21 years old (i.e. 20 year term period and current age of child is assumed to be 1
year).
You can choose to pay your premium as either quarterly, half-yearly or annually depending on
your convenience. We advise you to go for an annual premium payment mode, as it will help you
save on the yearly premium payable as compared to other premium modes. You can pay your
premium up to 15 days after the due date to fit in with your cash flow.
Age of Parent Accelerated Benefit Maturity Benefit Plan Double Benefit Plan
54
(Yrs.) Plan (Rs.) (Rs.)
(Rs.)
30 23,575 22,690 24,085
35 24,045 22,820 24,790
40 24,890 23,055 26,005
You also have a range of convenient auto premium payment options. For more details, you can
speak to your Financial Consultant or contact your nearest branch.
ELIGIBILITY
The age and term limits for the insured parent for taking out the HDFC Children’s Plan are as
shown below :
Term Period (Yrs.)
Minimum Maximum
Age at entry (Yrs.)
Minimum Maximum
Maximum age at
Maturity (Yrs.)
10 25 18 60 75
BONUSES
The Reversionary Bonus is usually declared annually as a percentage of the basic Sum Assured
of your policy. Once added to a policy, the bonus is guaranteed to be payable either on death or
maturity (as described in STEP 2 : Plan Options). The Reversionary Bonus is declared keeping in
mind a long –term view of investment returns, expenses, mortality and other experiences.
The Terminal Bonus is sometimes added to a policy on maturity and allows us to pay your fair
share of the ‘With Profits’ fund, based on the experience over your policy term.
55
BENEFICIARIES
The beneficiary(your child) is the sole person to receive the befit under the policy. Where the
beneficiary is less than 18 years of age, the benefit will be paid to the Appointee.
TAX BENEFITS (Based on current tax laws)
You will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax
Act, 1961.
Under Section 80C, you can save up to Rs.33,660 from your tax each year (calculated on the
highest tax bracket) as premiums up to Rs.1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10(10D), the benefits received from this policy are completely tax – free.
SURRENDERING THE POLICY
The HDFC Children’s Plan is designed to provide your child with the maximum possible
value over the longer term and the product features support this aim. However, we realize tat early
surrender is sometimes necessary. If you have paid premiums continuously for 3 years, then the
contract acquires a guaranteed minimum surrender value.
The guaranteed minimum surrender value is 50% of all premiums paid subsequent to the first
year, excluding any extra premium paid for increased mortality risk.
If the investment conditions allow, then we may pay a significantly higher discretionary
surrender value over the minimum guaranteed surrender value after the 3 years’ regular premium has
been paid.
BENEFITS AND FEATURES
DESCRIPTION
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Options Life Option Cover includes only death
Life & Health Option
Cover includes both death and critical illness
Age and Term Limit Death Cover ACI Cover
Minimum Term 10 10
Maximum Term 25 25
Maximum Maturity Age
75 65
Minimum Age at Entry
18 18
Maximum Age at Entry
65 55
Life Cover Bases Single Life Only
Life Assured On the life of the contract owner
Minimum Sum Assured
A) Minimum Sum assured on Regular Premiums:
The Minimum Sum Assured multiple is 5* Annual Regular Premium
B)Minimum Sum Assured on the Top Ups at inception:
Sum Assured on top ups = 125%* (Top-up paid – 25% of first Regular Premium Installment).
Maximum Sum Assured
40 times of the Annual Premium
HDFC Endowment Assurance Plan
Secure Your Family’s Financial Independence.
With our HDFC Endowment Assurance Plan, you can ensure that your family remains
financially independent, even if you are not around. You can ensure that they live a life of respect and
dignity.
The HDFC Endowment Assurance Plan gives you:
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An ideal way to secure your long-term financial goals
Valuable protection to your family by way of lump sum payment in case of your
unfortunate demise within policy term
Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to
maturity date
Very flexible benefit options and payment options
In case of your unfortunate demise during the policy term, this participating ('With
Profits') insurance plan will pay your family the Sum Assured (together with the attached
bonuses) you had chosen.
The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of
the term an additional Terminal Bonus may be paid depending on the performance of the underlying
investment
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3 EASY STEPS TO YOUR OWN PLAN
Step 1 Choose the amount of targeted savings and policy term using our Financial Planning
Tool
Step 2 Choose from any one of the 4 additional benefit options as per your requirement
Step 3 Work out the premium payable and Sum Assured with our Financial Consultant
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HDFC MONEY BACK PLAN
Secure your financial independence. Live life on your own terms.
You have always believed in living life on your own terms. So why let the changing realities of
everyday life overwhelm you and make your aspirations take a back seat? You can plan now to
ensure that you have the necessary funds to meet your future financial needs.
The table below will help you identify and classify some of your financial goals. You can
prioritize these goals and set your objectives accordingly (see indicative table given below).
LONG-TERM GOALS SHORT TERM GOALS
Provide adequate cover for Life, Critical
Illness or disability
Buying a car
Saving for big-ticket assets like your house Saving for your marriage
Saving for your children's education Vacation abroad
Having a regular system for savings
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HDFC Money Back Plan
The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:
A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals
within the policy term (see the table given below) an ideal way to secure your long- term
as well as short-term financial goals.
A lump sum payment on survival up to maturity date.
Valuable protection to your family by way of lump sum payment in case of your
unfortunate death within the policy term. This is over and above any earlier payouts.
Maturity Value
On maturity you receive survival benefit due at that point of time along with attaching bonuses
for the full Sum Assured calculated for the full term.
You can ensure your financial independence. And be able to live life on your own terms.
3 EASY STEPS TO YOUR OWN PLAN
Step 1 Choose the amount of targeted savings and policy term using our Financial Planning
Tool
Step 2 Choose from any one of the 4 additional optional benefits as per your requirement
Step 3 Work out the premium payable and Sum Assured with our Financial Consultant
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IMPORTANCE OF THE STUDY
The business management courses are insufficient to solve all the problems arising in practical
field. There is no any shortcut way to solve management a problem coming out of concern.The aim of
training is to develop the ability of correct decision making. A correct decision cut the right moment
itself is an added advantage for any problem arising out on regular basis.
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SCOPE OF THE STUDY
As we know research inculcates scientific and inductive thinking and it promotes the
development of logical habit of thinking and organization.
The role of research in several fields of applied economies, whether related to business or to the
economy as a whole, has greatly increased in modern times. A Research Project is a medium to
search optimum solution to the part of a major existing problem. Often it is done for anticipating the
future. In business scenario a research is a crucial part of management functioning
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LITERATURE REVIEW
This research is done through institute, industry survey under the title “Banking Services and
Investment Products
For preparing this project we went to many organizations institutional organizations of
Delhi .We collected information of customers consuming various services provided by HDFC Bank
Delhi. We have NCE used document of the HDFC Bank and others departmental document to find
out information about services which are provided by HDFC Bank. We have also used information
from internet. How to made questionnaire this is done by reading the various books i.e. Research
Methodology-R.C. Kothari, Market Research-Mehrotra etc. we discussed with our guide Mr. A.K.
Jain, and then we started Research.
We went to the different government offices and corporate offices and observe the following
things---
1. Whether our product is available or not at that company & organizations institutional.
2. If not then we saw of which company product is available.
3. What is strength of various services which are provided by HDFC Bank.
4. Has that organization so many brands of Banking services.
We check the response of customer about the services which are used by organization using the
questioner.
We check the various options Investment options used by public…
What is the awareness of Banking service in general public.
. After all it becomes possible to make a meaningful and useful project report.
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CUSTOMER SATISFACTION LEVEL
Customer satisfaction is a post purchase experience that a customer gets after
consumption of products and services and becomes deciding factor for customer to make
rational decision of repurchase and to recommend it to others.
But in a purely service industry service is provided, consumed and analyzed at the point of
consumption of service. This study basically focuses on measurement of customer
satisfaction related to Service offered and rendered at HDFC BANK.
This study gives a bird’s eye view of the hard and soft services provided by HDFC BANK
(retail) to their clients.
Recommending the services, rating the experience with HDFC BANK, service charges and
suggestions were some of the aspects explored. Rating the products, handling of compliant
calls, response time, repeat calls encounter and overall level of satisfaction were some of the
issues were also discovered.
To accomplish the task, a survey was carried in and around Varanasi city (retail outlets of
HDFC BANK) with a sample of 150 respondents taken on a random basis approaching the
customers at there houses and who walked in during banking hours a. A structured
questionnaire was prepared and administered and the data so collected was analyzed by
percentages methods.
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OBSERVATIONS AND ANALYSIS
SATISFACTION LEVEL OF EXISTING CUSTOMERS
YES NO CAN'T SAY0
10
20
30
40
50
60
On the question of satisfaction from the banker 58% responded ‘Yes’ and 40% says
‘No’ and about 2% were confused on the question.
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FACTORS FOR ACCOUNT OPENING
Convenience Banking Hours Services Less AQB05
1015202530354045
28% people want convenience and 7% Banking Hours 22% need services and about
43% desires a less AQB while opening an account.
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BANK PREFERENCES
OTHERS
ING VYSYA
IDBI
KOTAK
ICICI
HDFC
0 5 10 15 20 25 30
28% Of the respondents likes to deal with HDFC, 22% like to have there
a/c in ICICI, 17% preferred KOTAK, 14% wants IDBI, 9% ING, and 10%
preferred other private banks.
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IMPORTANT FACTORS FOR ACCOUNT OPENING
18-25 26-35 36-45 >4605
101520253035404550
ProximityWorking TimeServicesMin. Bal.
Here is the choice of different age groups on the question of services preferred for the
purpose of opening an account. All data is in % age.
70
50%
33%
17%
Yes NoCAN’T SAYl
ANSWERS OF QUESTIONS
1. Do you have HDFC bank account?
YES NO CAN’T SY
99 51 150
INTERPRETATION:
In the survey the total no of customers are 150. In which the HDFC bank customers are
100 and other bank customers are 50.the customers there full cooperation in seeking
feedback and the necessary information.
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2. How do you rate the services / features of the bank?
EXCELLENT; 45; 15%
VERY GOOD; 50; 17%
GOOD; 65; 22%
AVERAGE; 90; 30%
BELOW AV-ERAGE; 50;
17%
Sales
EXCELLENTVERY GOODGOODAVERAGEBELOW AVERAGE
INTERPRETATION:
15% respondent say it is excellent162% says very good,and 22% says good and maximum
30% says average and 17% says below average.
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Excellent 45
Very good 50
Good 65
Average 90
Below average 50
3. You would like more information to be sent on which of the following products.
13%
12%
16%20%
5%
15%
15% 4%Normal saving a/csenior citizen a/c
Kids a/c
DMAT
FDLoans
Gold bar
Forex card
INTERPRETATION:
The large percentage is about De-Mat, Kids A/c, Loans. This shows that there is need
of throwing information on De-Mat, Loans, Kids A/c, Forex and Gold bar
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4-HOW DO YOU RATE THE BEHAVIOR OF THE STAFF?
10%
70%
10%8% 2%
Excellent
very good
good
average
below average
INTERPRETATION:
The behavior of the staff is rated very good rated by 70% of the customers but there is
need of more improvement.
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Excellent 30
Very good 210
Good 30
Average 24
Below average 6
5-Are you aware that HDFC bank has more than 1160 branches?
Column1
YESNO
75
Yes No
69 231
Column1
YESNO
INTERPRETATION:
At this question the 231 customers are unknown about the no. of branches.
This shows that there is need of providing information on to the customers.
6. Are you satisfied with no of ATMs?
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29%
71%
yes
no
INTERPRETATION:
71% customers are not satisfied with the no. of the ATMs.
This proves the need of increasing the no. of ATMs.
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7. How do you give POINTS (Out of 50) the private banks as per the services and features being offered to you?
Sales
HDFC BANKICICI BANKAXIS BANKOTHERS
INTERPRETATION:
Almost all the three banks stood near each other HDFC 30%, ICICI at 32% that is
almost equal. For the purpose of this research it was absolutely imperative for me to find out
what the customers want from their banks. It was also necessary to find out the customers’
profile, i.e. age, gender, monthly income, occupation and also the current bank with whom
he / she is banking. This required me to get a detailed questionnaire filled by the concerned
person.
A detailed area wise analysis was also carried out to find out which bank was most
prevalent in a particular area.
This research will provide HDFC bank with information like customers’ needs, wants, and
also the customers’ behavior.
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HDFC BANK 30
ICICI BANK 32
AXIS BANK 27
ING VYASA 9
OTHERS 2
8-WHICH FACTOR AMONG THE FOLLOWING INFLUENCED YOU MOST TO OPEN AN
ACCOUNT IN HDFC BANK?
A)-FRIENDS /RELATIVE B)-ADVERTISMENT
C)-BANK EMPLOYEE D)-PROSPECTUS
INTERPRETATION :
It has been said a satisfied customer is the best medium for an advertisement since in this chart
friend / relative have played a key role in opening the accounts of others. Which implies that
bank’s real customers are satisfied enough with facilities available on the products and services
enjoyed by them. On the other hand advertisement also plays a vital role in influencing the
customer. As their behavior not only please the customer but also attract the customer. Well
maintained prospectus is also a major attributes of attracting the customer. Main focus of the
bank should be no satisfaction of customer.
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9- Are you interested in products offered by the HDFC bank?
Yes 61%
No 22%
Will think 17%
INTERPRETATION
The good thing is that at least the corporate were quite eager to find out what ICICI PRU has to
offer whereas the major 39 % of the corporate were not even interested in the products as they
are quite satisfied by the LIC and they are not in breaking their long relationship with them. The
private players will have to play a long battle in order to ensure that they are serious player in the
market.
10. What is more important for your bank?
61%22%
17%
Yes No Will think
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Customer satisfaction-----------------------------------------88 percent
Profit--------------------------------------------------------------3 percent
Reputation of the bank---------------------------------------8 percent
Any other thing ------------------------------------------------1 percent
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
customer satisfaction
profit
reputation of the bank
other factors
INTERPRETATION:
78 percent of those who rated customer satisfaction as their first preference had rated bank
reputation as their second preference. Therefore, this factor may also be taken into consideration
though could not be made clear due to certain methodological errors (that is humbly accepted).
‘SWOT’ ANALYSIS OF HDFC BANK
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STRENGTH WEAKNESS
Strong Brand Image
Dedicated sales team
Value added services
Rigid eligibility criteria
Weak customer relations management
Centralized structure
High average quarterly balance
Limited numbers of ATM and branches
OPPURTUNITY THREATS
Large untapped market
Distinguishable product
Presence of strong competitors
Aggressive marketing by competitors
Various investment schemes with high returns
CONCLUSIONS AND RECOMENDATIONS
CONCLUSIONS:
As per the finding and analysis of my project and study of HDFC Bank with other
banks, I reached to the conclusions regarding the saving account and current account in
different banks. First among them is that there is wide difference between the minimum
balance required to open the accounts in various banks and when a customer thinks to open
a account the first thing that he inquires is the minimum balance which is in financial terms
the Average quarterly balance [AQB] which has to be maintained quarterly. All the banks
like HDFC, ICICI, and Kotak Mahindra have minimum AQB of 5,000 in savings account
and 10,000 in current accounts i.e. there target market is elite class. Also I have observed
that almost all the banks are providing ATM cum Debit card along with accounts and some
of the banks giving free ATM transaction from any of the ATM. Some of the banks are
giving free balance inquiry and some 8 TO 8 banking.
Internet banking and mobile banking are yet other modern features which customers get
on opening an account. Some banks give some value added services like Utility payment,
Doorstep Banking and free third party cash payment, RTGS. Banks like HDFC and ICICI
have intercity banking and inter branch banking.
Banks are also providing loyalty services to the loyal customers like on every on every
ATM transaction of more than a certain limit a customer gets some points and on
accumulation of 25 or 50 points a customer gets a special gift. Some banks are also giving
free of cost Credit cards to their customers.
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RECOMMENDATIONS:
The bank should try to improve the ATM services, as it is one of the major
reasons for dissatisfaction among the customers as majority of those who were
dissatisfied were on account of non availability of cash in ATMs.
The bank should increase number of BRANCHES in the city as people feel that
the bank has very few BRANCHES in the city.
The bank needs to make people aware about the basic concept of accounts and
the benefits they can derive out of it and also the differential features of its
different account as compared to other banks. More than 65% of the people did
not even know about the concept and features of differential accounts of the
bank.
Also it was found in my analysis that the customers don’t really mind keeping a
high balance in their account and the bank should tap this fact by keeping a
higher AQB and reduce the charges of different services which customers
have a problem paying for. Only about 10% of the customers considered it to
be an important issue for deciding on their Banking preferences.
It was also found in my analysis that people want free of cost doorstep services
since HDFC is having merely 2 branches in the city.
The bank should target individuals in the age group of 25+ for whom
maintenance of AQB is not a problem.
The customer satisfaction level are quite satisfactory in HDFC Bank, so banks
must concentrate on “customers first”.
Bank should concentrate on making its presence felt on national level.
For having a qualified sales person college students or fresh graduates from
reputed colleges can be hired on part time basis.
Though the bank offers many free services but the customers still do not trust
the services, so banks must popularize these services to gain an edge over
nationalized banks.
Quality of services has been rated highly important by all demographic factors
as a reason for banking with a particular bank, HDFC Bank needs to improve
the services provided to its existing customers before attracting more in future
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and use word of mouth as a promotional tool to increase the sales potential of its
products.
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QUESTIONNAIRE
This questionnaire is prepared for the purpose of collecting the information about the customer’s behavior and preferences regarding Banking services
1. Name :-2. Address :-
3. Contact No. :-4. E-mail :-5. Occupation :-
1-Do you have HDFC bank account?
a)-Yes b)-No c)-Can’t
2- How do you rate the services / features of the bank?
a)-Excellent b)-Very good
c)-Good d)-Average
e)-below average
3-You would like more information to be sent on which of the following products
a)-Normal saving a/c b)-senior citizen a/c
c)-kids a/c d)-DMAT a/c
e)-FD f)-loans
g)-gold bar h)-forex card
4-HOW DO YOU RATE THE BEHAVIOR OF THE STAFF?
a)-Excellent b)-Very good
c)-Good d)-Average
e)-below average
5-Are you aware that HDFC bank has more than 1160 branches?a)-Yes b)-No
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6. Are you satisfied with no of ATMs?
a)-Yes b)-No
7. How do you give POINTS (Out of 50) the private banks as per the services and features being offered to you?
a)-HDFC Bank b)-ICICI Bankc)-AXIS Bank d)-Other
8-Which factor among the following influenced you must to open an account in HDFC BANK ?
A)-Friends/Relatives B)-Advertisement
C)-Bank employees D)-Prospectus
9. Are you interested in products offered by the HDFC BANK ?
Yes 61%
No 22%
Will think 17%
10-What is more important for your bank?
Customer satisfaction
Profit
Reputation of the bank
Any other thing
PLACE:DATE: (SIGNATURE)
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BIBLIOGRAPHY
www.hdfcbank.com
www.google.com
www.wikipedia.com
www.idbi.com
www.icici.com
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