Institute of Management Studies Banaras Hindu University Varanasi
Institute of Management Studies Banaras Hindu University Varanasi
SESSION : 2018-20
Submitted by : Supervision by :
Rishi Mishra Dr. Alok Kr. Rai & Dr. P.V. Rajeev
MBA-IB (Sem-III) Professor
(18423BIB064) IM (FMS) BHU
CANDIDATE’S DECLARATION
Date
Place: VARANASI (Rishi Mishra)
CERTIFICATE
CHAPTER PARTICULARS
Candidate Declaration
Certificate
Chapter 1 Introduction
1.1 The Topic
1.2 Reason for Selection of this Topic
1.3 Importance to The Company
1.4 Learning from the Study
Chapter 2 Organization Profile
2.1 Company History
2.2 Product Scope
2.3 Product and Services at a glance
2.4 Milestones in the history
2.5 Merger
2.6 Quality Policy
Chapter 3 Research objective and Scope of research
3.1 Problem Definition
3.2 Objective of research project
3.2.1 Primary Objective
3.2.2 Secondary Objective
3.3 Product Scope
Chapter 4 Research Methodology and Limitations
4.1 Research Plan
4.1.1 Preliminary Investigation
4.1.2 Exploratory Study
4.2 Research Design
4.2.1 Developing the research plan
4.2.2 Collection of data
4.3 Sampling plan
4.4 Sample Size
4.5 Data collection instrument development
4.6 Research limitations
Data analysis, Interpretations and
Chapter 5 Presentation
Chapter 6 Conclusions and Suggestions
6.1 Conclusions
6.2 Suggestions
Chapter 7 Limitations
ANNEXURES
BIBLIOGRAPHY
CHAPTER 1- INTRODUCTION
1.1 THE TOPIC: “Digitalization improved the Banking services with special
reference to HDFC Bank”
At HDFC Bank, I was assigned with the topic as “Digitalization improved the Banking services with
special reference to HDFC Bank” for my project work. I joined the company as a Intern.
Digitalization is the use of digital technologies to change a business model and provide new
revenue and value-producing opportunities; it is the process of moving to a digital business
Integration of digital technologies into everyday life by the digitization of everything that can be
digitized.
“Digital Banking – a new concept in the area of electronic banking, which aims to enrich
standard online and mobile banking services by integrating digital technologies, for example
strategic analytics tools, social media interactions, innovative payment solutions, mobile
technology and a focus on user experience.”
The ultimate purpose of giving me this topic was to know about the customer’s perceptions
about the different products of the bank, and to know about operational process. how these
products can attract them and how the company can generate maximum profit by convincing
them through personal banker and to better understand customer requirement and to understand
operational methodology.
The process of bank related transaction, bank related various terms, work environment of HDFC
Bank. Different products and services provided by the bank. Customers’ perception about the
different products. The brand image of the bank. What are the problems faced by customer on
daily basis. How to communicate with the customers. Different techniques of dealing with the
customers. How to convince and convert a customer into a real customer. and at the last how to
better response to the customer problem.
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
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 650 crore (Rs6.5 billion). The paid-up capital is
Rs520.6 crore (Rs.5.2 billion). The HDFC Group holds 20.86% of the bank's equity and about
18.16% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 33.44% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 5,48,942 shareholders. 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'.
DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable network of over
5,103 branches spread over 2,748 cities across India. All branches are linked on an online real-
time basis. Customers in over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has
a strong and active member base. The Bank also has a network of about over 13,160 networked
ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders.
STRONG NATIONAL NETWORK
Five ‘S’ Part of Kaizen is the technique which is used in the bank for easy and systematic work
place and eliminating unnecessary things from the work place.
FIVE ‘S’
1. SORT:
It focus on eliminating unnecessary items from the work place. It is excellent way to free up
valuable floor space. It segregate items as per “require and wanted”.
2. SYSTEMATIZE:
Systematize is focus on efficient and effective Storage method. That means it identify, organize
and arrange retrieval. It largely focus on good labeling and identification practices.
Objective: “A place for everything and everything in its place”.
3. SPIC- n - SPAN:
Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.
4. STANDERDIZE:
5. SUSTAIN:
It focuses on defining a new status and standard of organized work place. Sustain means regular
training to maintain standards developed under S-4. It brings in self- discipline and commitment
towards workplace organization.
COLOR CODING
In the HDFC BANK each department has their different color coding apply on the different file.
Due to this everyone aware about their particular color file which is coding on it and they save
their valuable time. It is a part of Kaizen and also included in the system of the Five ‘S’. Logic
behind it that, the color coding are always differentiate the things from the similar one.
DEPARTMENT
Welcome Desk
Personal Banker
Teller
Relationship Manager
Branch Manager
Demat
Others
HUMAN RESOURCES
The Bank’s staffing needs continued to increase during the year particularly in the retail banking
businesses in line with the business growth. Total number of employees increased from 14878 as
of March 31, 2006 to 98061 as of March 31, 2019.The Bank continues to focus on training its
employees on a continuing basis, both on the job and through training programs conducted by
internal and external faculty.
The Bank has consistently believed that broader employee ownership of its shares has a positive
impact on its performance and employee motivation.
MANAGEMENT
Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs. Gopinath
has 39 years of experience in financial sector policy formulation in different capacities at RBI.
As Deputy Governor of RBI for seven years and member of the Board. Mrs. Gopinath had been
guiding and influencing the national policies in the diverse areas of financial sector regulation
and supervision, development and regulation of financial markets, capital account management,
management of government borrowings, forex reserves management and payment and settlement
systems.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and
before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing. HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise
of the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.
TECHNOLOGY
Increase market share in India’s expanding banking and financial services industry by following
a disciplined growth strategy focusing on quality and not on quantity and delivering high quality
customer service. Leverage our technology platform and open scaleable systems to deliver more
products to more customers and to control operating costs. Maintain current high standards for
asset quality through disciplined credit risk management. Develop innovative products and
services that attract the targeted customers and address inefficiencies in the Indian financial
sector. Continue to develop products and services that reduce bank’s cost of funds. Focus on
high earnings growth with low volatility.
HDFC Bank offers a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises. For
individuals, the company has a range accounts, investment, and pension scheme, different types
of loans and cards that assist the customers. The customers can choose the suitable one from a
range of products which will suit their life-stage and needs. For organizations the company has a
host of customized solutions that range from funded services, Non-funded services, Value
addition services, Mutual fund etc. These affordable plans apart from providing long term value
to the employees help in enhancing goodwill of the company. The products of the company are
categorized into various sections which are as follows:
Savings Account
Current Account
Ultima Current Account
Supreme Current Account
Apex Current Account
EZEE Current Account
Max Current Account
Agri Current Account
Plus Current Account
Trade Current Account
Current Account for professionals
Regular Current Account
Premium Current Account
Deposits
Dream Deposit
Regular Fixed Deposit
Recurring Deposit
Demat Account
Safe Deposit Locker
B. Loans
Personal Loans
Home Loans
Two-Wheeler Loans
New Car Loans
Express Loans
Loan against Securities
Loan against Property
Education Loan
Loan against Assets
Gold Loan
D. Forex Services
Trade Finance
Traveler’s Cheques
Foreign Currency Cash
Foreign Currency Drafts
Foreign Currency Cheque Deposits
Foreign Currency Remittances
Forex Plus Card
E. Payment Services
Net Safe
Prepaid Refill
Bill Pay
Direct Pay
Visa Money Transfer
E-Monies Electronic Funds Transfer
Excise & Service Tax Payment
G. Cards
Silver Credit Card
Gold Credit Card
Woman's Gold Credit Card
Platinum plus Credit Card
Titanium Credit Card
Value plus Credit Card
Health plus Credit Card
HDFC Bank Idea Silver Card
HDFC Bank Idea Gold Card
Payment Services
Net Safe
Bill Pay
Insta Pay
Direct Pay
Visa Money
Online Donation
Remittances
HDFC Bank began its operations in 1995 with a simple mission to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, they are proud to say that they are well on our way towards that
goal. It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.
2019
BrandZ Top 100 Most HDFC Bank featured for the fifth time in the BrandZ's Top 100 Global Brands List
Valuable Global Brands
2019
American Indian Aditya Puri honoured for corporate and philanthropic leadership
Foundation
Express Computer BFSI Leadership Award for Outstanding Initiatives in Big Data / Analytics Artificial
Digital Innovation Intelligence Enterprise Applications
Awards 2019.
AIMA-JRD Tata HDFC Bank MD Mr. Aditya Puri has been conferred the AIMA-JRD Tata Corporate
Corporate Leadership Leadership Award for the Year 2018
Award 2018
2018
Aadhaar Excellence Awards 2018 • Best Performing Private Bank in Total Aadhaar Generation &
Update
• Best Performing Private Bank in Total Aadhaar Generation & Update
- In House Model
• Best Performing Branch of HDFC Bank in Total Aadhaar Generation
& Update for Kidwai Nagar Branch, Kanpur, Uttar Pradesh.
BrandZ's Top 100 Global Brands List HDFC Bank featured for the fourth time in the BrandZ's Top 100
Global Brands List
14th Visa Asia Pacific Security Summit India and South Asia Champion Security Award 2018
National Payments Excellence Awards HDFC Bank wins NPCI National Payments Excellence Awards
2018
Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global CEOs for 4th year - Growth
Leaders Category
Dun & Bradstreet BFSI Awards 2018 India's Leading Bank - Private sector
Euromoney Private Banking and Wealth - Net-worth-specific services (High Net Worth Clients US $ 5-30 MN)
Management survey 2018 - Asset Management
- SRI/Social Impact Investing
- International Clients
2017
Business India 19th Best Bank survey Best Bank for the year 2017 - HDFC Bank
Forbes Asia's 13th Fab 50 Companies List HDFC Bank in Forbes Asia's Top 50 List
Forbes' List of 5 Companies That Have Shaped Asia, HDFC Bank in Top 5 companies that have shaped Asia,
And The World and the World
IDRBT Banking Technology Excellence Awards 1) Best Bank - Use of Technology for Fraud Prevention
2016-17 (Large Banks)
2) Best Bank - Cyber Security and Defense (Large Banks)
3) Best Bank - Innovative Use of Technology (Large
Banks)
BrandZ Top 50 Most Valuable Indian Brands Ranked India's Most Valuable Brand for 4th year in a row
Dun & Bradstreet Banking Awards 2017 1. Best Private Sector Bank - Retail
2. Best Private Sector Bank - Digital Banking (Mobility)
3. Best Private Sector Bank - Asset Quality
4. Best Private Sector Bank - Overall
The Advertising Club Banking for Marquees 2017 Best Marketer in Banking sector
Greenwich Associates study HDFC Bank No. 1 in large corporate relationships, mid-
market penetration
Businessworld Digital Leadership and CIO Awards - Best Analytics Implementation Award - HDFC Bank
2017
CNBC TV 18 Financial Advisor Awards 2016-17 Best Performing Bank - Private Sector
The Asset Triple A Asia Infrastructure Awards 2017 Chemical Deal of the Year, India
Asiamoney Best Brands in Finance Survey 2017 Best Banking Brand in India - HDFC Bank
Dun & Bradstreet Corporate Award 2017 India's Leading Bank - Private Sector
12th BML Munjal Awards 2017 Sustained Excellence in Learning & Development
Finance Asia poll on Asia's Best Companies 2016 Best CEO- Aditya Puri
Best at Investor Relations- Rank 1
Most Committed to Corporate Governance- Rank 1
Best Managed Company - Rank 2
Best at CSR - Rank 8
Bank of the Year
National Payments Excellence Awards 2016 Best Bank in Cheque Truncation System (CTS)
Best Bank in National Automated Clearing House
(NACH)
Best Bank in National Financial Switch (NFS)
Runner up in Rupay Cards
Business Standard Annual Awards 2016 Banker of the year - Mr. Aditya Puri
IBA Banking Technology Awards 2017 Best IT Risk and Cyber Security Initiatives
Dun & Bradstreet - India's Leading BFSI Companies India's Leading Banks - Private Sector
& Awards 2017
Business Today - KPMG India's Best Banks 2016 Bank Of The Year (Private Sector)
2.5 MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29 The Boards of
HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and approved, subject to
due diligence, the share swap ratio for the proposed merger of Centurion Bank of Punjab with
HDFC Bank. The Scheme of Amalgamation envisages a share exchange ratio of one share of
HDFC Bank for twenty-nine shares of Centurion Bank of Punjab. The combined entity would
have a nationwide network of 5,103 branches (the largest amongst private sector Banks) a strong
deposit base of around Rs. 25,732 crores and net advances of around Rs. 17,486 crores. The
balance sheet size of the combined entity would be over Rs. 1,018,170 crores. Commenting on
the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, “We were amongst the first to
get a banking license, the first to do a merger in the private sector with Times Bank in 1999, and
now if this deal happens, it would be the largest merger in the private sector banking space in
India. HDFC Bank was looking for an appropriate merger opportunity that would add scale,
geography and experienced staff to its franchise. This opportunity arose and we thought it is an
attractive route to supplement HDFC Bank’s organic growth. We believe that Centurion Bank of
Punjab would be the right fit in terms of culture, strategic intent and approach to business.” Mr.
Aditya Puri, Managing Director, HDFC Bank said, “These are exciting times for the Indian
banking industry. The proposed merger will position the combined entity to significantly exploit
opportunities in a market globally recognized as one of the fastest growing. I’m particularly
bullish about the potential of business synergies and cultural fit between the two organizations.
The combined entity will be an even greater force in the market.” Mr. Rana Talwar, Chairman,
Centurion Bank of Punjab stated, “Over the last few years, Centurion Bank of Punjab has set
benchmarks for growth. The bank today has a large nationwide
network, an extremely valuable franchise, 98,061
talented employees, and strong leadership positions in the
market place. I believe that the merger with HDFC Bank will create a world class bank in quality
and scale and will set the stage to compete with banks both locally as well on a global level.”
Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, “We are
extremely pleased to receive the go ahead from our board to pursue this opportunity. A merger
between the banks provides significant synergies to the combined entity. The proposed merger
would further improve the franchise and customer proposition offered by the individual banks.”
SECURITY: The bank provides long term financial security to their policy. The bank does this
by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will
aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, the bank offers a range of
innovative products to meet these needs.
INTEGRITY CUSTOMER CENTRIC PEOPLE CARE “ONE FOR ALL AND ALL FOR
ONE” TEAM WORK JOY AND SIMPLICITY
HDFC Bank provides a very good digital service to the customer for their transaction. Through
these services the customer of the bank can also access their transaction. Digital services include-
1. Fund transfer
HDFC Bank allows various categories of Fund Transfer options for safe and secure fund
transfers which make banking easy. The fund transfer options are:
E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient and
supports fund transfers from any bank branch to any other bank branch anywhere in India.
RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank fund
transfer in real time which is speedier, faster and has no geographical limits.
Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank form
the comfort of one’s home and the payment is safe and charges at a negligible fee.
IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank
electronic fund transfer service which can be done even on Sundays or Bank holidays or late at
night.
2. Online Banking
With an increasing trend of internet usage, everything has been digitalized and the bank is not
behind in this race. The bank offers the facility of Online banking to its customers which is safe
and reduces unnecessary hassles of visiting the branch to carry out any transaction. Online
banking service offered by HDFC Bank includes:
Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to-the-
second account information, Net Banking manages customer’s account from the comfort of
costumer’s mouse- anytime, anywhere.
Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking numbers in your city to register for Net banking.
Net Banking offers a host of banking transactions from the comfort of the customer’s home. One
can check the bank account balance, book a Fixed or Recurring Deposit, recharge the mobile or
DTH Connection, paying off utility bills, paying taxes, applying for IPO, invest in Mutual Funds
online to name a few. The process is fast and completely secured without having to worry about
any fraud or theft.
Internet Banking is the most convenient and powerful way to manage customer’s account. Net
Banking is Real Time, giving them up-to-the-second details on customer’s account. It can be
accessed anytime, from anywhere, giving them complete control over their finances. There are
no queues to stand in, or turn to wait for. With Net Banking you are in control.
HDFC Bank’s Net Banking is secure. Using industry-standard technologies and infrastructure,
our service gives you peace of mind. So next time you think of visiting your branch, switch on
your PC instead. View the Net Banking Demo and see how easy it is it use.
Credit Card Net Banking: Through this facility the customer can view the credit card activities
online, pay the credit card bills, view Credit Card Statements online, know the unbilled
transactions and get the complete account information
Email statements: A savings or a current accountholders are eligible to get their account
statements on their email id. The Savings accountholders get a monthly statement and the
Current Accountholders get daily, weekly or monthly statements. The statements are free of cost
and display all the relevant transactions of the relevant period.
Loan accounts online: This feature enables the bank to provide post loan services to the
customers. Loan customers of the bank can log in and view their loan summary, transaction
history and loan account details.
3. Phone Banking
The bank extends banking information to your phone where information is available at the end of
a simple phone call.
The customer can also call the bank and effect transactions over the phone. Transactions like
reporting loss of ATM, credit, forex or prepaid cards, checking account balance and cheque
status, ordering cheque books, stopping cheque payments, credit card related queries can all be
solved by a call to the bank’s phone banking division.
Now your bank account is now just a phone call away. Through Phone Banking you can:
4. Mobile Banking
By simply downloading the bank’s app on your smart phone, you can avail of over 75
transactions. The application is secure and fast. Mobile is now your bank! Now access your bank
account and conduct a host of banking transactions and inquiries through your mobile, with our
unique Mobile Banking services.
Mobile Banking is a service that allows you to do banking transactions on your mobile phone
without making a call, using the SMS facility.
Mobile Banking service provides a host of features at your finger-tips through SMS:
Mobile Banking works through a set of text massages (SMS). With SMS you can perform a wide
range of query-based transaction from your Mobile Phone, without even making a call.
All you need to do is to type in the specified code for the transaction as a text massage and send
5676712.
You will receive the response in form of a text message on your mobile phone screen within a
few seconds.
How is this different from making a call on mobile phone or using Phone Banking?
The differences between making a call on mobile phone and sending a text message are as
follows:
You are not required to dial a number; you send a text message i.e. a coded message to 5676712
HDFC Bank does not charge anything for this service and there is no airtime involved. However,
the Cellular Service Provider may levy a nominal charge for the SMS facility.
In Mobile Banking, you actually see your banking transactions on your mobile phone screen as
opposed to hearing a message through the phone.
a) If you are opening an account with the bank, you can apply for MobileBanking through the
account opening document.
b) If you already have an account with the bank, you can apply for MobileBanking through the
combined Direct Banking Channels form. You can download the form and call for a sales
representative. Alternatively you can fill this form and hand it over to your nearest branch.
c) If you already have an account with the bank and if you are registered for Net Banking
services, then you can register online using the 'Mobile Banking Registration' option available
inside Net Banking.
No, this service is brought to you FREE from HDFC Bank. Also, since you are using the text
messaging service from your mobile phone, you do not incur any airtime charges in making a
phone call from your mobile phone. However, the Cellular Service Provider may levy a nominal
Value Added Services (VAS) charge for the SMS facility.
5. Insta Alerts
Insta Alert is a service through which the bank can proactively inform customers about
transactions / events that occurs in his bank account. This information can be given to the
customers via SMS on their mobile phone, or through an email to their mail id or both. Alert
could either be event based e.g. Salary Credit or Frequency based e.g. Weekly balance of
account. Alerts acts as an important value add in the service that bank provide to the customers,
as it will help in proactively informing the customers about their bank account related activities.
This reduces the load from bank channels like Phone Banking or branches as customer does not
need to call for getting information on Cr/Dr in accounts. Alerts also increase the Brand Recall
of the bank in the minds of customers.
SMS & Email – your account transactions also generate a SMS or email alert where any debit
transaction, credit transaction and maintenance of account balance is alerted to the customer if
registered.
Types of alerts:
The customer can register for any or all of the following alerts.
6. Insta Query
Insta query is a service that allows you to do a banking transaction on your mobile phone without
making a call. You can do your transaction using the SMS facility
Insta Query works through a set of text messages (SMS). With SMS you can perform a wide
range of query-based transactions from your mobile phone, without even making a call.
All you need to do is to type in the specified code for the transaction as a text message and send
it to 5676712.
You will receive the response in the form of a text message on your mobile phone screen within
a few seconds
7. ATM
Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost
anytime. To withdraw cash, make deposits, or transfer funds between accounts, you generally
insert an ATM card and enter your PIN. Some financial institution and ATM owners charge a
fee, particularly to consumers who don’t have accounts with them or on transactions at remote
locations. Generally, ATMs must tell you they charge a fee and its amount on or at the terminal
screen before you complete the transaction. Check the rules of our institution and ATMs you use
to find out when or whether a fee is charged.
It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by far the
largest investment ever made in electronic self-service by financial institutions. Over US$ 40
billion has been invested in simply buying these machines and many times that in running them.
There are now over 1.1 million machines operating in over 140 countries worldwide.
The banks are losing the cashier’s checks, check cashing and even cash dispensing to the c-stores
and grocery stores. They are asleep at the switch and watching more transactions walk away to
convenience stores and supermarkets that provide 24 hour access and integrated transactions.
ATMs do provide a larger set of functions, such as check cashing, ticket sales or money orders.
We already know that cash dispensing as a dedicated function is a sustainable applications, the
question is whether that application can be incorporated successfully into a more complex
consumer product that offers multiple applications.
Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash options
provide the facility of withdrawing prefixed amounts. Ultra Fast Cash opetion allows you to
withdraw Rs.3000/- in one shot.
Mini Statement: Get a printout of your last 8 transactions and your current balance.
Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit both cash
and cheques. / Cash deposited in ATMs will be credited to the account on the same day
(provided cash is deposited before the clearing) and cheques are sent for clearing on the next
working day.
Funds Transfer: Transfer funds from one account to another linked account in the same branch.
PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card.
Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for payment
of bills, making donations to temples / trusts, buying internet packs, airtime recharges for prepaid
mobile phones and much more…
Others: Request for a cheque book from ATMs and our concerned branch will dispatch it such
that it reaches you within 10 working days.
DIGITAL INITIATIVES
Private sector lender HDFC Bank launched nationwide campaign to position itself as a premier
digital bank.
Integrated, nationwide brand campaign “Har Zaroorat Poori Ho Chutki Mein, Bank Aapki
Mutthi Mein... the campaign will reinforce bank's position as India's premier digital bank".
Some initiatives are-
PayZapp– A complete payment solution for all your needs.
Chillr – App to enable customers to send money to any person on phone contact list.
Digital Wallet -to transact on any website for HDFC Bank and non-HDFC Bank customers.
HDFC Bank Watch Banking– A banking experience on a personalized wearable device taking
consumer’s interaction with the bank to a whole new level.
30-Minute Auto Loan, 15-minute Two-Wheeler Loan.
10-second personal loan disbursement.
HDFC Bank, one of India's leading private sector bank, has now launched a comprehensive
mobile payment solution that encompasses several mobile commerce scenarios. The latest
initiative in HDFC Bank's digital banking offering christened #GoDigital, 'PayZapp', allows one-
click payments for all your spends.
PayZapp offers easy checkout using a single PIN without the need to enter credit/debit card
details or a code or OTP for the second factor authentication. The wallet in the app is linked to
your credit and debit card and acts as a virtual card - a virtual international card that you can use
for any transactions across the globe.
It doesn't have any transaction limit as well. Also, the app allows users to transfer money
instantly to anybody using a mobile phone or an email ID.
The app also integrates SmartBuy, a virtual mega marketplace from HDFC Bank that lists all
deals and offers by leading e-Commerce portals as well as utility payment options. While HDFC
Bank has managed to partner with leaders like Flipkart, Makemytrip, Cleartrip, BookMyShow,
Expedia, GoIbibo, Yatra and Big Basket at the launch, the bank intends to get over 10,000
merchants onboard in next 45 days.
But, you are limited in options when you're booking an airline ticket. For instance, since only
partner OTAs would be available, but apart from straightforward discounts and promotions,
you'd also save on the convenience charges.
In a casual conversation, the bank stated that one is likely to save at least 10-15% on typical
monthly purchases via SmartBuy.
At the moment, the app is available only for HDFC Bank customers and for Android devices
only. In the second phase - next three months - the service would open to other cardholders and
also see the launch on iOS and Windows devices too.
Soon, PayZapp would also introduce loyalty points, geo-targeted offers, QR code based
payments and contactless payment mobile instruments.
Although still in beta, the app is pretty straightforward to use. You need to register using the
mobilephone number already registered with the bank, fill in your details, and create a Personal
Identification Number (PIN). Your mobile number works as your Login ID.
Parag Rao, Business Head, Cards, Payment Products and Merchant Acquiring Services at HDFC
Bank, said that the genesis of PayZapp stems from the 'banks are obsolete' comments.
Every day an innovative startup is disrupting the space with convenient payment instruments and
bringing financial inclusion, and HDFC Bank does not want to be considered as a 'dinosaur'
despite several digital initiatives and industry firsts.
Unlike a mobile wallet, there's no hassle of pre-payment or recharging. Also, there are no
additional charges levied by the bank for purchases, fund transfers or bill payments using the
app.
HDFC Bank launched Chillr, a mobile app that allows users to instantly transfer money to any
contact in their phonebook 24 hours a day, seven days a week. HDFC Bank has partnered with
MobME, a Kochi-based technology firm, to launch this app.
The recipient will instantly receive money in his / her bank account.
Chillr is a first-of-its kind application that is linked directly to the customer’s bank account, so
there is no need to worry about filling up a prepaid wallet. No passwords are stored on the phone
and it can be accessed only with an M-PIN known to the customer alone.
With this app, customers no longer have to ask for account information and wait for a set amount
of time in order to add beneficiaries if they wish to transfer money. They can send and request
money directly on their mobile.
With Chillr, HDFC Bank customers can transfer money to any person in India, once they
download the app and register. The app is widely accessible as it works on Android and iOS
operating systems. It will soon be launched for the Windows phone as well.
The app is particularly useful for college students and young professionals. While dining at
restaurants, customers, particularly youngsters can split the bill using this app. Parents, whose
children are studying away from home in other cities can transfer money via the app. In the near
future it will also allow users to pay utility bills and various merchants via the mobile.
Chillr is also an important tool for financial inclusion in rural markets, allowing migrant workers
to remit money to family back home in a secure manner. HDFC Bank has also piloted the use of
Chillr for its Sustainable Livelihood Initiative (SLI), a programme that reaches out to people at
the bottom of the pyramid by providing them with livelihood finance and skills training. The
participants running small businesses used the app to make payments to employees, avoiding the
hassle of travelling to the nearest ATM to withdraw cash.
“Customer convenience is central to our concept of Digital. This Chillr app will benefit
various segments of people in the society. From students to young professionals, from the
migrant workers in cities to customers in rural India, this app gives the convenience to send
and receive money using your mobile phone in secured manner. This app is one more
important step by the Bank to leverage technology and digital to offer banking services
anytime and anywhere”
Chillr is the latest initiative in HDFC Bank’s digital banking offering christened GoDigital. This
campaign began on the banks of the Varanasi last year, with the launch of its ‘Bank Aap Ki
Muththi Mein’ offering, which literally converts the mobile phone into a bank branch. Since then
the bank has launched a host of innovative digital initiatives. With Chillr, HDFC Bank is adding
to its digital product suite.
Available for HDFC Bank customers and all other debit and credit card holders
Accessible from mobile app and online, as well as enabled with NFC for contactless
payments
HDFC Bank is all set to launch a digital wallet and an electronic marketplace for various online
merchants. Once an account holder or credit card holder registers for a digital wallet, he can
transact on most websites using only his wallet credentials. The wallet will not be restricted to
HDFC Bank customers, but also allow non-HDFC Bank debit and credit card holders.
HDFC Bank is the market leader both as a card issuer and in processing card payments for
merchants, and accounts 40% of e-commerce transactions. With the shift from desktops to
mobile phone, mobile devices account for half of the purchases in terms of number of
transactions.
However, the complexity of entering card details onto a phone screen also leads to high level of
failed transactions. A digital wallet meets Reserve Bank of India’s requirement of two-factor
authentication but does away with the hassle of filling card details every time. Also, the digital
wallet – which can be accessed from a mobile app or online – will be enabled for contactless
payment using Near Field Communication (NFC) by flashing the phone in front of readers that
can accept NFC payments. Also, the customers will not need to store their card details on third-
party websites, and as a bank, the details are in any case entrusted with the bank.
In a standard credit card purchase, the number of steps can go up to 11-12 including filling in
the 16-digit card number, name, expiry date, CVV and other details. Our digital wallet will
enable the transaction to be completed in two steps, which substantially cuts down the failure
rate on mobile phone purchases, which is as high as 50%.
– Parag Rao, Senior EVP and Head (Card Payment Products), HDFC Bank
According to industry estimates, by 2020, 30% of all digital payments will be done using a
digital wallet. HDFC Bank’s new offering, in line with the Go Digital initiative, attempts to offer
the “The future of mobile payments”
In December 2014, HDFC Bank launched its ‘Go Digital – Bank aapki mutthi mein’ campaign
on the banks of the Varanasi river with an aim to provide holistic banking services in all possible
digital channels. Today, HDFC Bank provides 175+ banking transactions through its Net
banking platform and 80+ transactions through Mobile banking (Mobile and Tablet apps).
HDFC Bank thought that it was the opportune moment to introduce a new category in digital
banking, leveraging the emerging wearable platforms, and becoming the first bank in India to
launch Watch banking for Apple Watch.
Why Apple Watch?
HDFC Bank is starting with the Apple Watch and aims to provide banking services through all
wearable devices across platforms like iOS and Android.
We have started with Apple Watch since it is designed from ground up keeping in mind what the
user would want to do with such a device in a jiffy. HDFC Bank’s App has been made keeping
this in mind and the features are chosen accordingly.
HDFC Bank will provide a total of 10 banking transactions in the current launch phase. Some of
them being View Account Information, Bill Payments, Recharges, Hot listing facilities, locate
nearest branch/ATM/offer, request statement/chequebook etc. Moreover, HDFC Bank’s Watch
Banking does not require our customers to download a separate App. Customers can activate
Watch Banking from an upgraded version of HDFC Bank’s Mobile Banking App itself!
HDFC Bank brings in the same level of high security of its Mobile Banking App to its Watch
Banking experience.
Any user information or data flow that happens, it if from the mobile phone to the bank’s
secure servers. The watch is merely a projection device.
For added security, there is a watch banking PIN that the user himself sets during the one
time set-up process. This can be done only after entering his customer id and password known
only to the user.
Additionally the Apple watch itself has a passcode lock just like other iOS devices.
HDFC Bank launches ‘Bank Aapki Muththi Mein’ – a bouquet of transactions on mobile #GoDigital
With over 75 transactions – all a touch away – it offers the customer the widest range of
transactions conceivable. These are both financial and non-financial transactions that he needs in
his daily life for which he would have to visit a branch, or an ATM. It is by far the largest
offering of its kind by any bank in India.
Besides essential transactions such as booking fixed- and recurring deposits, bill and tax
payments, buying insurance and mutual funds, the offering will also allow customers – for the
first time in the country – to buy instantly all kind of loans. It also offers them fully customized,
location-specific promotions, offers/deals on shopping, dining, movies and entertainment.
With Bank Aap Ki Muththi Mein, you can do everything other than access your locker, and
deposit or withdraw cash. Customer convenience is central to our concept of Digital. And, there
is no bigger convenience than bringing your bank to the palm of your hand. We are very excited
to unveil our Bank Aap Ki Muththi Mein offering and with it world class experience of banking
to millions of our countrymen.
Bank Aap Ki Muththi Mein works on both a smart phone as well as the basic phone that supports
internet browsing. For phones that do not support internet browsing, there’s sms banking and
missed-call banking. All that a customer needs to do is send a text to or call a toll free number to
know his account balance, get a mini statement, request a check book or detailed account
statement.
Today, 55% of all transactions at HDFC Bank are conducted through digital channels
CHAPTER 3- RESEARCH OBJECTIVES AND SCOPE OF
RESEARCH PROJECT
Research methodology is the process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques.
Research Design
A research design serves as a bridge between what has been established (the research objectives)
and how to accomplish these objectives. In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the collection, measurement
and analysis of data. More explicitly, the design decisions happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?
The function of research design is to provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly on the
research purpose.
Research Type:
Sampling Design:
SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.
PRIMARY DATA is the data which has been collected through personal contact.
SECONDARY DATA is the data which are available in the form of fact and figures. The sources
of secondary data are:
Websites
Magazines
Articles
Interpretation:
Out of 100 respondents that I have taken for my survey 80% respondents have saving account,
15% have current account, 3% have salary account and 2% respondents have other account
which include NRI and fixed deposit account in the bank. It means that the bank has a very good
amount of saving account customers as compare to the other account.
Q2. Since how long you are having account in HDFC Bank?
Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and more.
Interpretation:
When the customers are asked about their preference between branch banking and digital
banking 90% customers preferred digital banking and 10% customers preferred branch banking
as a mode of their banking transaction. Above graph reveals their preferences for the both.
Interpretation:
Out of the 100 respondents all the 100% of them use digital banking services of HDFC bank.
Q5. What are your reasons for choosing our Digital banking services?
Interpretation:
Out of the 100 respondents 60% use digital banking services for convenience, 80% use to save
time and 68% use due to 24 hour access.
Interpretation:
Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile
banking, 24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and all the
100% of respondents use ATM service.
Q7. For what purpose you use Digital banking services at HDFC Bank?
Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use to pay
bill, 78% use to get balance details, 36% use for recharge.
Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?
Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank Go
digital initiative while 55% of them are not aware.
Q9. Which Digital Initiative of HDFC you know about?
Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers do not
know about Go digital initiative because they are not much aware about this facility. 45% of
them are aware about some initiative and out of those 45% customers 88.88% know about
PayZaap, 78.33% know about Chillr, 28.88% know about Digital wallet, and 44.44% know
about Watch banking.
Interpretation:
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and 60% do
not use it.
Q11. Do you think HDFC Bank banking services has improved through Digitalization?
2%
Yes
No
98%
Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of HDFC
bank and 2% of the respondents do not think that digitalization has improved the banking
services.
Q12. Please rate that how much Digitalization has improved the Banking Services?
Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the banking
services, 68% rate it 4 stars, and 18% rate 3 stars.
Q13. What is your level of satisfaction with HDFC Bank Digital Services?
Interpretation:
Satisfaction level is very important for the direct banking channel of bank. In above graph we
can see that 65% Customers are satisfied with HDFC bank digital services, 33% customers are
fully satisfied and only 2% are somewhat satisfied. It indicates that HDFC bank customers have
high satisfaction level from the services they get.
FINDINGS
In our study we find that 100% respondents are aware with the ATM facility use this facility and
around 75% of them use internet banking, 60% use mobile banking, 24% use phone banking. But
the awareness of Insta query is only 4%.
Most of customers believe that Digital banking is more convenient way for banking and most of
them use digital banking in order to save time and also as it has 24 hour access.
Customers use digital banking services at HDFC bank mostly for money transfer, to pay bill, for
recharge, online shopping. HDFC bank provides very quick services to its customers.
Most of respondents who are not using the Go Digital initiatives of the bank, it is because they
are not much aware about the initiatives of the bank.
The customer are using the digital banking services for few purpose it means the use of the
digital banking channel is limited for few transaction.
Most of respondent who are using the digital banking services are satisfied with the service of
the bank for the particular digital banking service.
The response of the respondents indicates that digitalization has a good and positive impact on
the banking services.
According to the response of the respondents it shows that digitalization improved the banking
services very much for the customers.
Though the Digital Banking is an effective tool but many of the customers are not using it
due to the awareness of the particular digital banking services. Now the responsibility lies
with the bank to make them aware about various Digital banking channels through publicity
and advertisement
Bank should educate the customer about the usage of digital banking services and also about
their advantages. This would prompt the customers to shift from traditional brick and mortar
channel.
It has been observed that even the customers who know about digital banking services are
not using this facility due to misconception and lack of information. These customers should
be targeted by the bank and must be convinced to use the same.
The result of the study show that customers are using only few services of various digital
banking services - for example ATM for view balance and cash withdrawal etc. Though
digital banking provides a full gamut of various services. Customer should be made aware of
these services and must be encouraged to use the same.
The bank may improve existing facilities in rural areas through advertising, spread awareness
about computer and internet banking.
The best way to motivate the customer to use digital banking is more efficient customer care
service.
LIMITATIONS
There are certain limitations of this project report which are listed below.
This study is limited only to the customers of the HDFC bank, Varanasi.
The responses of the customers may be biased.
Sample size is limited to 100.
ANNEXURES
1. QUESTIONNAIRE
NAME……………………………………
GENDER………………………………..
AGE……………………………………
OCCUPATION……………………......
EMAIL ID………………………………
0 – 1 year 1 – 2 years
Yes No
Q5. What are your reasons for choosing our Digital banking services?
ATM
Q7. For what purpose you use Digital banking services at HDFC Bank?
Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?
Yes No
Yes No
Q11. Do you think HDFC Bank banking services has improved through Digitalization?
Yes No
Q12. Please rate that how much Digitalization has improved the Banking Services?
5 Stars 4 Stars
3 Stars 2 Stars
1 Star
Q13. What is your level of satisfaction with HDFC Bank Digital Services?
1. BOOKS
3. WEBSITES
www.hdfcbank.com, www.google.com