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CHAPTER 1: INTRODUCTION
1) Retail banking is banking in which banking institutions executetransactions directly with consumers, rather than corporations or other
banks. Services offered include: savings and transactionalaccounts, mortgages, personal loans, debit cards, credit cards, and so forth.
Commercial bank has two meanings:
Commercial bank is the term used for a normal bank to distinguish it from
an investment bank. (After the great depression, the U.S. Congress required
that banks only engage in banking activities, whereas investment banks
were limited to capital markets activities. This separation is no longer
mandatory.)
Commercial bank can also refer to a bank or a division of a bank that mostlydeals with deposits and loans from corporations or large businesses, as
opposed to normal individual members of the public (retail banking). It is
the most successful department of banking.
Community development bank are regulated banks that provide financialservices and credit to underserved markets or populations.
Private Banks manage the assets of high net worth individuals.
Offshore banks are banks located in jurisdictions with low taxation and
regulation. Many offshore banks are essentially private banks.
Savings banks accept savings deposits.
Postal savings banks are savings banks associated with national postal
systems.
Retail Banking services are also termed as Personal Banking services.
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Banking & Financial Institutions
The Indian consumer is fast changing his habits, borrowing money to buythe products he wants, not content with buying what he can afford. Theresultant consumer boom is what market strategies explain as the key tosuccess of the Indian consumer finance market.
Consumer finance today is a win-win system in which everyone stands togain. For an Indian consumer, it is an opportunity to upgrade his standard ofliving right now instead of waiting for years for his savings to accumulate.For manufacturers, it stimulates demand and lowers inventory. Formiddlemen, it is a sales booting device. For players of consumer finance, itis a means of profit generation.
The buy-now-pay-later culture is still fairly nascent in India, evolvingthrough various forms like consumer lending, consumer credit, consumerloans, friendly and family borrowings, kitties, daily payment schemes, etc.the basic underpinning of consumer financing is that the consumer‟s
spending habits tend to be geared to expectations of future income. They arelosing their fear of borrowing, riding surfboards of consumer finance.
Retail banking is quiet broad in nature – it refers to the dealing incommercial banks with individual consumers, both on the liabilities andassets side of the balance sheet. Fixed/ current, Saving deposits on theliabilities side; and mortgages, loans (eg: personal, housing, auto andeducational) on the assets side are the more important products offered bythe banks. Related ancillary services include, credit cards or depositoryservices. Today‟s retail banking sector is characterized by three basic
characteristics:
Multiple products (deposits, credit cards, insurance, investments andsecurities)
Multiple channels of distribution (call center, branch, internet and kiosk)
Multiple consumer groups (consumer, small business and corporate)
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Retail Banking Strategies in the Present Scenario
Identifies and analyses management excellence in key dimensions such as:
Business models: Is there one best business model? Which ones haveoutperformed others? And why? Is a pure retail bank a viable model? Ifnot, why not? How does the retail function interact with other units in thesuccessful banks? How do the successful banks – especially those indiversified models – ensure that customer relationships are effectivelymanaged? What is the culture of a successful retail model? How have once-successful retail models lost their effectiveness?
Product range, Priorities, range, evolution, breadth, profitability, pricing andother central elements.
Client base: With the enhanced importance of the customer post thefinancial crisis, four key dimensions of the customer base are examined:how the bank prioritizes the segments of this base; views on their clients‟
needs and behavior; how performance in serving the client is measured; andthe impact of new bank regulation, introduced since the crisis, largely to
protect the customer.
Geographic scope: How the „back to basics‟ theme from the banking crisis
is echoed in the geographic scope of bank retail strategies.
Retail distribution channels: How the four dimensions of channelmanagement are reflected in bank strategies: the theoretical role of the
branch and other channels; the challenge of integrating the channels; trendsin channel management; and unresolved issues for the future.
Retail leadership and culture: Is there a unique culture or leadership stylein successful retail banks? How might it differ from other businesses? Whatcan we learn from the management style and culture of the case studies of
excellence?
Cost base and bank operating systems: What factors drive the widedifference in perceived bank cost/income ratios? What is the relativeimportance of a bank‟s core system in contrast to other factors, such as
discipline in cost management? How are banks attempting to reduce theircost base, and what might be the likely outcome? What are the systems
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issues facing a bank‟s management, and how might they be resolved?
Risk management and regulation: How bank decision-making structureshave been impacted; and the future outlook; and how effectively bankmanagement might deal with risk in the future.
The impact of the banking crisis on retail bank profitability : The driversof future profitability; and the likely outcomes in terms of bottom linereturns on equity.
Present Scenario
Indian retail banking has been showing phenomenal growth
In 2004-05, 42% of credit growth came from retail
Over the last 5 years CAGR has been over 35%
Retail credit level crossed Rs.189Crore in 2004-05
Market has transformed into a „buyer‟s market‟ from a „seller‟s market‟
Comprises of multiple products, channels of distribution and multiple
customer groups
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Retail banking strategies in future
Future of Retail Banking
The accelerated retail growth has been on a historically low base
Penetration continues to be significantly low compared to global bench marks
Share of retail credit expected to grow from 22% to 36%
Retail credit expected to grow to Rs.575,000 crs by 2010 at an annual growth
rate of 25%
Dramatic changes expected in the credit portfolio of Banks in the next 5
years
Housing will continue to be the biggest growth segment, followed by Auto
loans
Banks need to expand and diversify by focussing on nonurban segment as
well as varied income and demographic groups
Rural areas offer tremendous potential too which needs to be exploited
Strategies for Future
Reaching to masses: Need to customize
Customer segmentation/differentiation
Data mining/CRM based campaigns
Products per customer/loyalty
Promoting low risk retail lending products
Offer an array of products and financial advisory.
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CHAPTER 2: RETAIL BANKING IN INDIA
Retail banking in India is not a new phenomenon. It has always been prevalent in
India in various forms. For the last few years it has become synonymous banking
for many banks.
The typical products offered in the Indian retail banking segment are housing
loans, consumption loans for durables, auto loans, credit cards and educational
loans. The loans are marketed under attractive brand names to differentiate the
products offered by different banks. As the Report On Trend & Progress Of India.
2003-2004, has shown the loan values of these retail lending typically range
between Rs. 20,000 to Rs. 100 lakhs. The loans are generally of duration from 5 to
7 years with housing loans granted for a longer duration of 15 years. Credit card is
another rapidly growing sub- segment of this product group.
In the recent past, retail lending has turned out to be a key profit driver for banks
with retail portfolio constituting 21.5% of total outstanding advances as on March
2004. The overall impairment of the retail loan portfolio worked out much less
than the Gross NPA ratio for the entire loan portfolio.
With a jump in the Indian economy from a manufacturing sector, that never really
took off, to a nascent service sector, Banking as a whole is undergoing a change. A
larger option for the consumer is getting translated into a larger demand forfinancial products and customization of services is fast becoming the norm than a
competitive advantage. With the Retail banking sector expected to grow at a rate of
30% [ChandaKochhar, ED, ICICI Bank] players are focusing more and more on
the Retail and are waking up to the potential of this sector of banking. At the same
time, the banking sector as a whole is seeing structural changes in regulatory
frameworks and securitization and stringent NPA norms expected to be in place by
2004 means the faster one adapts to these changing dynamics, the faster is one
expected to gain the advantage. In this article, we try to study the reasons behindthe euphemism regarding the Retail-focus of the Indian banks and try to assess
how much of it is worth the attention that it is attracting.
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Potential for Retail in India: Is sky the limit?
The Indian players are bullish on the Retail business and this is not totally
unfounded. There are two main reasons behind this. Firstly, it is now undeniable
that the face of the Indian consumer is changing. This is reflected in a change inthe urban household income pattern. The direct fallout of such a change will be the
consumption patterns and hence the banking habits of Indians, which will now be
skewed towards Retail products. At the same time, India compares pretty poorly
with the other economies of the world that are now becoming comparable in terms
of spending patterns with the opening up of our economy. For instance, while the
total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India
stands at less than 5%. The comparison with the West is even more staggering.
Another comparison that is natural when comparing Retail sectors is the use of
credit cards. Here also, the potential lies in the fact that of all the consumer
expenditure in India in 2001, less than 1% was through plastic, the corresponding
US figure standing at 18%.
But how competitive are the players?
The fact that the statistics reveal a huge potential also brings with it a threat that is
true for any sector of a country that is opening up. Just how competitive are our banks? Is the threat of getting drubbed by foreign competition real? To analyze
this, one needs to get into the shoes of the foreign banks. In other words, how do
they see us? Are we good takeover targets?
Going by international standards, a large portion of the Indian population is simply
not “bankable” – taking profitability into consideration. On the other hand, the
financial services market is highly over-leveraged in India. Competition is fierce,
particularly from local private banks such as HDFC and ICICI, in the business of
home, car and consumer loans. There, precisely lie the pitfalls of such explosivegrowth. All banks are targeting the fluffiest segment i.e. the upwardly mobile
urban salaried class. Although the players are spreading their operations into
segments like self- employed and the semi-urban rich, it is an open secret that the
big city Indian yuppies form the most profitable segment. Over-dependence on this
segment is bound to bring in inflexibility in the business.
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Drivers of Retail Banking In India
Reduction in I nterest Rates:
There has been a continuous decrease in interest rates over the last 5-6 years. For
instance, fixed interest rates for loans amounting to Rs. 5 lakhs for a tenure of 15years have fallen from 16% in 1997-98 to as low as 7% in 2003-04. This reduction
in interest rates coupled with increasing competition resulted in product
innovations and competitive pricing in the market.
Changes in demographic profi le:
Today the average age of borrower has declined from 40 years about 5 years ago
to, now, an estimated 30 years. In the future the average age is expected to reduce
further and hence it will augur well for the housing finance market in terms ofincreased borrowers.
Decline in average house costs:
There has been a reduction in average house costs to annual income ratio by 4-
times from high of a 11-14 a decade ago. This has also resulted in affordable EMI
as a percentage of monthly income.
Aggressive lending by banks:
Banks found a breather in housing loans as a means to deploy funds on back of lull
in credit off take by the corporate sector. To add to that the sector called for lower
risk weights, provided attractive spread and has lower level of delinquency.
Tax breaks:
The recent budgets provided for various tax and fiscal incentives for deploying
funds in the housing sector. The Reserve Bank of India (RBI) has also directed
commercial banks to allocate at least 3% of their incremental deposits in fiscal2002 to housing loans. At the same time the policy of the Reserve Bank of India
regarding the inclusion of Mortgaged backed securities as a part of priority sector
lending for banks and reducing the risk-weight on home loans from 100% to 50%
made the sector more attractive than the banks.
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Other growth drivers
Economic prosperity and the consequent increase in purchasing power has
given a fillip to a consumer boom. Note that after the 10 years after 1992,
India‟s economy grew at an average rate of 6.8% and continues to grow atalmost the same rate- not many countries in the world match this
performance.
Changing consumer demographics indicate vast potential for growth in
consumption both qualitatively and quantitatively. India is one of the
countries having highest proportion (70%) of the population below 35 years
of age (young population). The BRIC report of the Goldman-Sachs, which
predicted a bright future for Brazil, Russia, India and China, mentioned
Indian demographic advantage as an important positive factor for India.
Technological factors played a major role. Convenient banking in the form
of debit cards, internet and phone-banking, anywhere and anytime banking
has attracted many new customers into the banking field. Technological
innovations relating to increasing use of credit/debit cards, ATM‟s, Direct
debits and phone banking has contributed to the growth of retail banking in
India.
Treasury income of the banks, which had strengthened the bottom lines of banks for the past few years, has been on a decline for the last 2 years. In
such a scenario, retail business provides a good vehicle of profit
maximization.
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Opportunities and Challenges of Retail Banking in India
Retail banking has immense opportunities in a growing economy like India. As the
growth story gets unfolded in India, retail banking is going to emerge a major
driver. How does the world view us? I have already referred to the BRIC Reporttalking India as an economic superpower. A. T. Kearney, a global management
consulting firm, recently identified India as the 'second most attractive retail
destination' of 30 emergent markets.
The rise of the Indian middle class is an important contributory factor in this
regard. The percentage of middle to high income Indian households is expected to
continue rising. The younger population not only wields increasing purchasing
power, but as far as acquiring personal debt is concerned, they are perhaps more
comfortable than previous generations. Improving consumer purchasing power,coupled with more liberal attitudes toward personal debt, is contributing to India's
retail banking segment.
The combination of the above factors promises delivery channels, the areas of
potential conflicts of interest tend to increase in universal banks and
financialconglomerates. Some of the key policy issues relevant to the retail
banking sector are: financial inclusion, responsible lending, access to finance,
long-term savings, financial capability, consumer protection, regulation and
financial crime prevention. What are the challenges for the industry and its
stakeholders?
First, retention of customers is going to be a major challenge. According to a
research by Reichheld and Sasser in the Harvard Business Review, 5 per cent
increase in customer retention can increase profitability by 35 per cent in banking
business, 50 per cent in insurance and brokerage, and 125 per cent in the consumer
credit card market. Thus, banks need to emphasize retaining customers and
increasing market share.
Second, rising indebtedness could turn out to be a cause for concern in the future.
India's position, of course, is not comparable to that of the developed world where
household debt as a proportion of disposable income is much higher. Such a
scenario creates high uncertainty. Expressing concerns about the high growth
witnessed in the consumer credit segments the Reserve Bank has, as a temporary
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measure, put in place risk containment measures and increased the risk weight
from 100 per cent to 125 per cent in the case of consumer credit including personal
loans and credit cards ( Mid-term Review of Annual Policy, 2004-05).
Third, information technology poses both opportunities and challenges. Even withATM machines and Internet Banking, many consumers still prefer the personal
touch of their neighbourhood branch bank. Technology has made it possible to
deliver services throughout the branch bank network, providing instant updates to
checking accounts and rapid movement of money for stock transfers. However,
this dependency on the network has brought IT departments additional
responsibilities and challenges in managing, maintaining and optimizing the
performance of retail banking networks. Illustratively, ensuring that all bank
products and services are available, at all times, and across the entire organization
is essential for today‟s retails banks to generate revenues and remain competitive.
Besides, there are network management challenges, whereby keeping these
complex, distributed networks and applications operating properly in support of
business objectives becomes essential. Specific challenges include ensuring that
account transaction applications run efficiently between the branch offices and data
centers.
Fourth, KYC Issues and money laundering risks in retail banking is yet another
important issue. Retail lending is often regarded as a low risk area for moneylaundering because of the perception of the sums involved. However, competition
for clients may also lead to KYC procedures being waived in the bid for new
business. Banks must also consider seriously the type of identification documents
they will accept and other processes to be completed. The Reserve Bank has issued
details guidelines on application of KYC norms in November 2004.
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CHAPTER 3: HDFC BANK PROFILE
HDFC Bank Limited is an Indian financial services company based in Mumbai,Maharashtra. It was incorporated in 1994. HDFC Bank is the fifth largest bank in
India by assets. It is the largest bank in India by market capitalization as of 24February 2014. As on Jan 2 2014, the market cap value of HDFC was around USD26.88B, as compared to Credit Suisse Group with USD 47.63B.The bank was
promoted by the Housing Development Finance Corporation, a premier housingfinance company (set up in 1977) of India.
As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year2012-13, the bank has reported net profit of INR 69 billion, up 31% from the
previous fiscal year. Its customer base stood at 28.7 million customers on 31March 2013.
HISTORY
HDFC Bank Limited was incorporated in August 1994. It was promoted byHousing Development Finance Corporation Limited (HDFC), India's largesthousing finance company. It was among the first companies to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank inJanuary 1995 under the RBI's liberalization policies.
On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett,Coleman & Co.) was merged with HDFC Bank Ltd. This was the first merger oftwo private banks in India. Shareholders of Times Bank received 1 share of HDFCBank for every 5.75 shares of Times Bank.
On 23 May 2008, HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of aboutRs. 1,22,000 crore and net advances of about Rs. 89,000 crore. The balance sheetsize of the combined entity is more than Rs. 1,63,000 crore.
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HDFC Bank Limited
"We understand your world"
Type Public
Traded as
BSE: 500180 NSE: HDFCBANK NYSE: HDBBSE SENSEX ConstituentCNX Nifty Constituent
Industry Banking, Financial services
Founded August 1994
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Aditya Puri (MD)
Products
Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage
loans, private banking, privateequity, wealth management
RevenueUS$ 6.5 billion (March
2013)
Operatingincome
US$ 1.87 billion (March2013)
ProfitUS$ 1.1 billion (March
2013)
Total assets
US$ 66.7 billion (May 2013)Total equity US$ 8.6 billion (March 2013
Employees 69,065 (March 2013)
Website HDFCBank.com
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SERVICES
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services,including working capital finance, trade services, transactional services, cashmanagement, etc. to large, small and mid-sized corporates and agriculture-based
businesses in India. The bank is also a leading provider of these services to itscorporate 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 inassociation with VISA (Visa Electron). The bank also issues the MasterCard
Maestro debit card. The Bank launched its credit card business in late 2001. By theend of June 2013, it had a credit card base of 5.94 million. By March 2012, the
bank had a total card base (debit and credit cards) of over 19.7 million. The Bankis also one of the leading players in the "merchant acquiring" business with over240,000 point-of-sale (POS) terminals for debit / credit cards acceptance atmerchant establishments. The Bank is positioned in various net based B2Copportunities including a wide range of Internet banking services for FixedDeposits, Loans, Bill Payments, etc.
Treasury
The bank has three main product areas - Foreign Exchange and Derivatives, LocalCurrency Money Market & Debt Securities, and Equities. These services are
provided through the bank's Treasury team. To comply with statutory reserverequirements, the bank is required to hold 25% of its deposits in governmentsecurities. The Treasury business is responsible for managing the returns andmarket risk on this investment portfolio.
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OPERATIONS
As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in2,022 cities in India, and all branches of the bank are linked on an online real-time
basis. The Bank has overseas branch operations in Bahrain and Hong Kong.[2][11]
HDFC Bank has two subsidiaries:
HDB Financial Services Limited („HDBFS‟): HDBFS is engaged in retail asset
financing. It is a non-deposit taking non-bank finance company (NBFC). Apartfrom lending to individuals, the company grants loans to micro, small and medium
business enterprises. It also runs call centers for collection services to the HDFCBank‟s retail loan products. HDFC Bank holds 97.4% shares in HDBFS. As of
March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-13,
HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has6,404 employees as of 31 March 2013.
HDFC Securities Limited („HSL‟): HSL is engaged in stock broking. As of March
31, 2013, HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1%shareholding in HSL. During the FY 2012-13, HSL had turnover of INR 2.3 billionand profit after tax of INR 668 million. During the year, the Company received the“Best e-Brokerage Award - 2012” in the Outlook Money Awards in the runner upcategory.
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CHAPTER 4: RETAIL BANKING IN HDFC BANK
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile Banking.
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 MasterCard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million. The
Bank is also one of the leading players in the “merchant acquiring” business with
over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man
power in Banking Industry HDFC BANK's retail services have become by and
large the best in India and since the contribution to CASA i.e. total number of
current and savings account of more than 50%, HDFC BANK has full potential to
become India‟s No.1 Private Sector Bank.
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Accounts & Deposit
Savings Accounts
Regular Savings Account
Access your account across a wide network of branches and ATMs
Avail of convenient services like NetBanking and MobileBanking
Senior Citizens Account
Get FREE travellers‟ cheques
Get insurance against hospitalization in case of an accident
Limited KYC Account
Get zero initial pay-in and a zero balance account
Use our free MobileBanking service to bank anywhere
Kids Advantage Account
Receive free Education Insurance cover
Avail FREE DD/ MC at the different HDFC Bank branches
Family Savings Group Account
Enjoy FREE lifetime EasyShop International Debit Card for all members in
the group
Senior Citizens Account
Get FREE travellers‟ cheques
Get insurance against hospitalization in case of an accident
Savings account to savings account sweep-in to a nominated account
SavingsMax Account
Get a FREE Titanium Royale Debit Card
Enjoy an Accidental Hospitalization cover of Rs. 1 lac per annum
No Frills Account
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Get FREE NetBanking for your convenience
Take advantage of BillPay, an instant solution to all your regular utility bill
payments. Give payment instructions over the phone or via the Internet*
Institutional Savings Account
Enjoy freedom from maintaining balance with our zero balance account
Enjoy comprehensive banking with us using our various collection and
payment services
Pension Savings Account
Experience on time pension disbursals
Benefit from immediate action in case family pension is devolved to spouse
Savings Plus Account
Free lifetime International Debit Card
Free Payable-at-Par chequebook, without any usage charges
Salary Account
Premium Salary Account
Free Personal Accidental Death Cover of Rs. 5 lakhs*
Free for life Titanium Debit Card for the primary applicant
Defence Salary Account
Free Additional ATM Card for Personnel Below Office Rank (PBORs)*
Unlimited Free Demand Drafts / Managers Cheques at HDFC Bank branch
locations
Payroll Account
Zero balance account
Free for life International Debit Card for the primary applicant
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Reimbursement Account
Zero Balance Account
Track and Manage your reimbursements separately
Regular Salary Account
Free Personal Accidental Death Cover of Rs. 1 lakh*
Free for life International Debit Card for the primary applicant
Classic Salary Account
Free for life International Debit Card for the primary applicant
Free cheque book of 25 leaves per quarter
No Frills Salary Account
Zero Balance Account
Free ATM Card for life for the primary applicant
Salary Family Account
Zero Balance Account for Family members
Free for life Titanium Debit Card for the primary applicant.
Current account
Premium Current Account
Free collection of funds through RTGS and NEFT
Free local and anywhere cheque payment across HDFC Bank locations
Regular Current Account
Free local cheque collection and payments
Free collection of funds through RTGS and NEFT
RFC - Domestic Account
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Retain your foreign exchange funds in the same currency in which you
receive it
Convert your FX funds at your own opportune time
Flexi Current Account
Free RTGS/NEFT transactions
40 free Demand Drafts and 40 free Pay Orders issued from any HDFC Bank
Branch
Apex Current Account
Access to more than 2000 branches
Huge savings in inter-city transactions for payable-at-par cheques, funds
transfers, NEFT, RTGS and Demand Drafts/Pay Orders
Max Current Account
Faster collection of outstation cheques
Free Pay Orders which can be issued from any HDFC Bank branch
Merchant Advantage Current Account
Pay your vendors and suppliers across the country using multiple remittance
options
Free Regular Debit Card with a host of privileges and benefits
Flexible cash deposit limits per month*
Merchant Advantage Plus Current Account
Get special offers on the Business Debit Cards
Enjoy a free monthly Cash Deposit limit* at your home branch location
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Deposits
Regular Fixed Deposit
Earn higher interest on your savings
Flexibility, security and excellent returns
5 Year Tax Saving Fixed Deposit
Save with 5 year tenure
Minimum deposit just Rs 100/-, maximum Rs 1 lakh
Super Saver Facility
Like two accounts working together
Enjoy a high rate of interest and benefit from an overdraft facility up to 75%
of the value of your Fixed Deposit
Sweep-in Facility
Avoid overdrafts while still taking advantage of your Fixed Deposits
Choose between a Savings or Current Account to link to your Fixed Deposit
Recurring Deposit
Invest every month and be prepared for the future
Make investments as small as Rs 500/- per month
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Demat Account
HDFC Bank is a leading Depository Participant in India with over 1.4 million
Demat Accounts.
HDFC Bank Demat Services offers you a secure and convenient way to keep trackof your securities and investments, without the hassle of handling physical
documents
Features:
No Account Opening charges
1st year waiver on Annual Folio Maintenance Charges
Transaction linked Annual Folio Maintenance charge from 2nd year
onwards (More you transact, Lesser you pay)
Why open a Demat account?
HDFC Bank is a leading Depository Participant in India with over 1.4
million Demat Accounts.
HDFC Bank Demat Services offers you a secure and convenient way to keep
track of your securities and investments, without the hassle of handling
physical documents
What are the features?
No Account Opening charges
1st year waiver on Annual Folio Maintenance Charges
Transaction linked Annual Folio Maintenance charge from 2nd year
onwards (More you transact, Lesser you pay)
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Safe Deposit Locker
Features
Wide availability of locker locations and sizes
Access to safe-deposit lockers at all branches, no matter where your account
is held.
Lockers are rented for one year, and rent is payable in advance.
Lockers can be hired by individuals, limited companies, associations and
trusts
To use a locker, you should hold a Savings or Current account with HDFC
Bank
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Loans
Personal Loan
Personal Loan
Super fast application processing and disbursal
Service at your doorstep
No guarantor/security/collateral required
SmartDraft - Overdraft Against Salary
Easy-to-use and easy-to-pay facility
No pre-closure charges
Minimum & easy documentation
Business Loan
These funds can be used for business expansion, working capital, your
child's education or home renovation
No collateral or guarantor surety required. A guarantor becomes a co-
endorser and assumes liability in event of default.
Loans for professionals
Hassle free processing
Speedy loan approval
Home loan
Flexible repayment options
Added security with Loan Cover Term Assurance Plan (LCTAP)
Automated Repayment of Home Loan EMIs
In-house scrutiny of property documents
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Car Loans
Covers the widest range of cars and multi-utility vehicles in India
Borrow up to 3 - 6 times your annual income
Avail up to 100% finance on your favorite car Get exclusive customer privileges
Two Wheeler Loan
Calculate your EMI
Special schemes
Speedy loan approval
Avail up to 100% finance on your favorite car
Get exclusive customer privileges
Loan against Assets
Gold Loan - Term Loan
Get instant loan on your gold jewellery and coins
Enjoy assured security of your gold jewellery
Gold Loan - Overdraft
Pay interest on overdraft only when you use the loan
Enjoy the benefits of a flexible repayment structure without paying EMIs
Loan Against Securities
Why sell securities to raise funds when you can get a loan against them?
You pay interest on the loan only when you actually use it. No EMIs on this
facility
Don‟t miss a chance of getting upto 80% loan against the value of your
securities
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Loan Against Property
Do you own a property? Why not avail a loan against it?
Lower EMI owing to long repayment tenure
Flexible product offering – Term Loan & Overdraft facility available
Residential and commercial – both types of properties accepted!
Loans Against Rental Receivables
Maximize the benefits of future rents on your commercial property today
Get additional funds through expected rental cash flows for growing your
business, funding personal requirements or adding to an existing loan
Educational loan
Student Loans for Indian Education
Get loans uptoRs. 15 lakh for education in India
Get our service at your doorstep!
Central Government Interest Subsidy Scheme
In order to support students from economically weaker sections of the
society, Department of Education, Ministry of Human Resource
Development, Government of India has launched an interest subsidy
scheme. The MoHRD has appointed Canara Bank as the Nodal Bank for the
Scheme
Student Loans for Foreign Education
Get loans uptoRs. 20 lakh for your foreign education and no collateral
required if the loan amount is less than Rs. 7.5 lakh
Get access to special remittance rates, NRE accounts, insurance and service
at your doorstep!
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Government sponsored loans
HDFC Bank participates in a variety of Government Sponsored Programs to
support the lesser privileged strata of the society
These schemes assist socially backward classes and help increase
employment generation.
You can get a loan of amounts starting from as less as Rs 5,000 onwards!
There are 3 schemes offered under government sponsored programs which
may be useful to you.
Rural loans
HDFC Bank participates in a variety of Government Sponsored Programs to
support the lesser privileged strata of the society
These schemes assist socially backward classes and help increase
employment generation.
You can get a loan of amounts starting from as less as Rs 5,000 onwards!
There are 3 schemes offered under government sponsored programs which
may be useful to you.
Retail Agri Loans
Use your Kisan Gold Card to buy agricultural equipment and pay for
other agricultural related expenses.
Credit limit of Kisan Gold Card will initially be set for 1 year and will be
renewed subsequently.
Enjoy the modern convenience of anytime and anywhere banking!
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Your Kisan Gold Card will broadly cover crop production requirements,
postharvest and domestic consumption requirements and other equipment
related expenses.
You will get a Personal Accident Insurance Cover of Rs. 2 lakhs totallyFREE!
You can enjoy daily withdrawal amounts with an upper limit of Rs. 15,000
at ATMs and Rs. 25,000 at merchant outlets.
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Investments
Wealth services
Process that considers your risk profile, investment objectives and financial
goals
Expert advice from our in-house research team
Comprehensive Portfolio Tracker
Monthly updates on new offers and investment concepts.
Complimentary subscription to our monthly magazine - Investment Insight
A complete structured process:
Identifying Objectives
Establishing your Risk Profile
Recommending Research Backed Solutions
Seamless Execution
Regular Reviews
Investments Products
Mutual Funds
Purchase, redeem and switch funds from the comfort of your home or on-
the-go through NetBanking
Equities & Derivatives
Create, view and maintain up to 5 different portfolios
Monitor the real-time movement of up to 30 of your favorite stocks
IPO Application through ASBA
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Invest in IPOs without moving funds from your Savings Account
No more writing cheques or preparing demand drafts
Invest in Gold (Mudra Pure Gold Bar)
24 Carat gold bars available in 2.5g, 5g, 8g, 10g, 20g and 50g
Assay Certification and tamper-proof certicard packs
Invest in Silver (Mudra Silver Bar)
Silver bars available in 50g & 100g
Assay Certification and tamper-proof certicard packs
8% Savings Bonds
100% risk free investment option
Minimum investment of Rs. 1,000 and no maximum limit on investment
Sec 54 EC - Capital Gains Bonds
Get tax exemption on capital gain
Maximum investment limit of up to Rs. 50 Lakhs
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Insurance
Life Insurance
HDFC Life Click 2 Protect Plan
Secure your family‟s future in quick, easy steps
Get a life cover online upto 10 crore at nominal cost
Enjoy tax benefits on premium upto 1 lakh
HDFC SL YoungStar Super Premium
Save for your child's future in advance
Chose from two great insurance cover options
Create a customized plan depending on your child's needs
HDFC Loan Cover Term Assurance Plan
Choice of taking the plan on a single life basis or a joint life (first claim)
basis
Flexibility to choose the life cover to be paid to your family in case of yourunfortunate demise
HDFC Term Assurance Plan
High cover at a very nominal cost
Optional benefits to cover other eventualities
Choice of premium payment options: regular premium or single one-time
premium
HDFC Life SampoornSamridhi Insurance Plan
Enhanced Cash and Cover option on maturity
Lump sum payment to your family in case of your unfortunate demise
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HDFC Savings Assurance Plan
No underwriting or extensive documentation required
Tax benefits under Section 80C and 10(10D)* of Income Tax Act 1961
HDFC Single Premium Whole of Life Insurance Plan
Whole of life plan aimed at providing long-term real growth of your money
Convenience with no need to undergo any medical tests
Single premium investment plan
HDFC SL ClassicAssure Insurance Plan
Pay your premiums only for 7 years
Choose your Sum Assured as per your need
HDFC SL Crest
Invest and insure for your family at one go
Reap benefits of highest NAV*
Be protected from market fluctuations yet earn from market crests *With a minimum guaranteed NAV of Rs.15*. Only if highest NAV
Guarantee Fund is selected
HDFC SL New Money Back Plan
Get a percentage of your Sum Assured as a cash payout
Lump sum payment in case of unfortunate demise of the insured
Large sum assured discount
HDFC SL ProGrowthMaximiser
Select from a 3 great options of life insurance to invest in
Invest in additional premium top ups as per your convenience
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HDFC Critical Care Plan
Choose the Sum Assured rending from Rs. 2 lakh to Rs. 20 lakh according
to your needs
Tax benefits are available under section 80D under Income Tax Act, 1961
Personal Accident Insurance Plan A
Get Protection against hospital expenses, injuries, disability and death.
Accident cover for yourself and your family under one insurance policy
Get a comprehensive accident insurance for a sum Insured of Rs. 15 – 75
lakh
Personal Accident Insurance Plan B
Range of Sum Insured available from Rs.2.5 lakh to Rs.15 lakh
Extend the cover to your entire family including dependent parents and
dependent children in a single policy
The individual stands protected for sickness in India and personal accident
cover worldwide.
Motor Insurance
Commercial Vehicle Insurance
Ensure smooth business operations by covering risk arising out of
Accidental Loss or damage to your vehicle, third party liability and injury or
death involving your commercial vehicle
Make use of over 1600+ authorized networks of garages across India for
cashless claims with this policy
Emergency assistance services such as towing, ambulance, claims
assistance, are also provided
Private Car Insurance
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Avail of HDFC ERGO's Private Cars Insurance at over 1600+ authorized
network of garages across India
Get discounts based on age, professions and membership of the Automobile
Association Get complete coverage of liability towards third parties along with owner-
driver accident cover.
Travel insurance
Protect your travels against any loss, delay or damage.
Instant Online Policy Issuance
Choose from a range of policies for individuals ranging in the age group of 6
months to 70 years.
Get cashless hospitalisation
No medical / health check-up
Emergency assistance will be available to you on call 24x7 if you need to
make international travel claims.
Home Insurance
Protection of all your property and its contents priceless possessions and
property in a single policy.
Minimum documentation is required for this policy.
Avail premium discounts of upto 15% for certain security features.
A coverage option on burglary, theft and larceny is also offered.
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Modes of payments
Pay bills online
With BillPay Online you can pay all your bills easily including:
Electricity Bills
Gas Bills
Mobile Bills
Landline and Internet Bills
Insurance PremiumsPay directly from your bank account
Avoid running out of credit
Pay from the comfort of your home or office
Pay directly from your bank account
Avoid running out of credit
Pay from the comfort of your home or office
Fund transfer
RTGS fund transfer
An inter-bank funds transfer system that makes transactions in „real time‟
Benefits:
Speed – transfers in real-time
Faster settlement cycles – no more inter-bank or clearing house settlement
issues
Wider boundaries – no geographical limitations within India
e-Monies Electronic Funds Transfer
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A nation- wide funds transfer system, supporting the transfer of funds from any
bank branch to any other bank branch, anywhere in India.
Benefits of E-Monies National Electronic Funds Transfer is:
Easier – no queues
Faster – no demand drafts, cheques or letters
Convenient - handle Credit card payments from home
Visa CardPay
Transfer your money to any Visa Credit card within India
Make transfers from the comfort of your home or office
Benefits
Make safe transfers anytime
Transfer funds at a „negligible cost‟
Tax Payement
Online Tax Payment
Convenience at its best:
No need to stand in long queues for payment of tax or write cheques or fill
challans in four copies
No need to visit a collecting bank
Enjoy extended deadlines for payments on cut off date
Process
Fill in the details of the Challan and submit the transaction
Enter your NetBanking Customer ID and Password
Enter your account details to get your account debited online
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CHAPTER 5: CONCLUSION
The conventional scenario of banks is fast changing. Retail banking has
gained enormous momentum in the Indian banking sector during last five
years. There is vast opportunity as well as challenges for retail banking in
India. The changing portfolio of retail banking in India has many
dimensions. There is a need of constant innovation in retail banking. Banks
need to use retail segment as a growth trigger. There is a noticeable change
in the number and nature of products being tossed up along with the way in
which banking services are being offered. Banks requires product
development and differentiation, innovation and business process re-
engineering, micro planning, marketing, prudent pricing, customization,
technological upgradation and cross selling. The competitive advantage inretail banking that would help each bank to reach out and retain the
customer. The product differentiation will provide a bank with an edge over
competition. Efforts should be made to ensure customer delight, which is
essential in order to retain the customers in the open competitive business.
There should be operational transparency while dealing with the customers.
CRM must be used the make customer delight. The delivery channels
require comprehensive approach to ensure convenience and reliability. The
retail segment can survive only if it is competitive. These challenges demanda well planned and implemented strategy to cope with the changing business
environment. These challenges can be converted into opportunities by
enhancing the internal capabilities and providing the innovative products and
services fulfilling the diverse needs of the customers. The future growth of
the retail banking sector would be the outcome of the strategies of today.
Given the size advantages, diverse customer base and scope for future
expansion, there is need for evolving a systematic approach to retail
banking. Advantage of this model is the flexibility at the back-end to adapt
to new online transaction processing models facilitated by electronic
commerce
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