Institute of Management Studies

Banaras Hindu University

Varanasi

A Summer Internship Project Report on

DIGITALIZATION IMPROVED THE BANKING SERVICES
WITH SPECIAL REFERENCE TO HDFC BANK
Submitted In Partial Fulfillment of the Requirements
For the Degree of
Masters of Business Administration
In
International Business (MBA-IB)

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

I hereby declare that the work presented in this report entitled

“Digitalization improved the Banking services with special reference
to HDFC Bank” in fulfillment of the requirement for the award of the
semester III of Master of Business Administration (International
Business), submitted in Institute of Management Studies (BHU),
Varanasi.

It is an authentic record of my work carried out during my semester

under the guidance of Dr. Alok Kr. Rai & Dr. P.V. Rajeev. The work
reported in this has not been submitted by me for award of any other
degree or diploma.

Date
Place: VARANASI (Rishi Mishra)
 CERTIFICATE

This is to certify that the Project work entitled “Digitalization improved

the Banking services with special reference to HDFC Bank ” submitted
by Rishi Mishra in fulfillment for the requirements of the award of
Master of Business Administration Degree in Institute of Management
Studies, BHU Varanasi is an authentic work carried out by her under my
supervision and guidance. To the best of my knowledge, the matter
embodied in the project has not been submitted to any other
University / Institute for the award of any Degree.

Date: Abdul Quadir

Branch Manager
HDFC Bank
CONTENTS

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.

1.2 REASON FOR SELECTION OF THIS TOPIC:

“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.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across all

channels and points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services,
organization, culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

Digital Banking is the application of technology to ensure seamless end-to-end processing of

banking transactions/operations; initiated by the client, ensuring maximum utility; to the client in
terms of availability, usefulness and cost; to the bank in terms of reduced operating costs, zero
errors and enhanced services.

1.3 IMPORTANCE TO THE COMPANY:

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.

1.4 LEARNING FROM THE STUDY:

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.

CHAPTER 2-ORGANIZATION PROFILE

2.1 COMPANY HISTORY: The Housing Development Finance Corporation Limited (HDFC)
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
PROMOTER

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

WORK PLACE TRANSFORMATION

FIVE “S” PART OF KAIZEN

Focus on effective work place organization believe in

“Small changes lead to large improvement”

Every successful organization have their own strategy to win the race in the competitive market.
They use some technique and methodology for smooth running of business. HDFC BANK also
acquired the Japanese technique for smooth running of work and effective work place
organization.

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.

BENEFIT OF FIVE “S”

 It can be started immediately.

  Every one has to participate.
 Five “S” is an entirely people driven initiatives.
 Brings in concept of ownership.
 All wastage are made visible.

FIVE ‘S’

S-1 SORT SEIRI

S-2 SYSTEMATIZE SEITON

S-3 SPIC-N-SPAN SEIRO

S-4 STANDARDIZE SEIKETSU

S-5 SUSTAIN SHITSUKE

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:

It focuses on simplification and standardization. It involves standard rules and policies. It

establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility
for doing various jobs and decides on Five S frequency.

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

HDFC Bank operates in a highly automated environment in

terms of information technology and communication systems. All the bank's branches have
online connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the branch network
and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments
in acquiring the best technology available internationally, to build the infrastructure for a world
class bank. The Bank's business is supported by scalable and robust systems which ensure that
our clients always get the finest services we offer. The Bank has prioritized its engagement in
technology and the internet as one of its key goals and has already made significant progress in
web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging
its market position, expertise and technology to create a competitive advantage and build market
share.

HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial services industry by following
a disciplined growth strategy focusing on quality and not on quantity and delivering high quality
customer service. Leverage our technology platform and open 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.

2.2 PRODUCT SCOPE:

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:

 Accounts and deposits.

 Loans.
 Investments and Insurance.
 Forex and payment services.
 Cards.
 Customer center.

2.3 PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES

A. Accounts & Deposits

Savings Account

 Regular Savings Account

 Savings Max Account
 Women’s Saving Account
 Senior Citizens Account
 Government/Institutional Savings Account
 Kid's Advantage Account
 Digi Save youth Account
 Basic Savings Bank Deposit Account
 Savings Farmer Account
 BSBDA Small Account
 Government Scheme Beneficiary 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

C. Investments & Insurance

 Mutual Funds
 Insurance
 Bonds
 Financial Planning
 Knowledge Centre
 Equities & Derivatives
 Mudra Gold Bar

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

F. Access Your Bank - One View

 Insta Alerts
 Mobile Banking
 ATM
 Phone Banking
 Branch Network

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

2. WHOLESALE BANKING SERVICES

 Funded Services
 Non-Funded Services
 Value Added Services
 Internet Banking
 Clearing Sub-Membership
 RTGS – sub membership
 Fund Transfer
 ATM Tie-ups
 Corporate Salary a/c
  Tax Collection
 Financial Institutions
 Mutual Funds
 Stock Brokers
 Insurance Companies
 Commodities Business
 Trusts

3. NRI BANKING SERVICES

 Rupee Saving a/c
 Rupee Current a/c
 Rupee Fixed Deposits
 Foreign Currency Deposits
 Accounts for Returning Indians

 Payment Services
 Net Safe
 Bill Pay
 Insta Pay
 Direct Pay
 Visa Money
 Online Donation
 Remittances

2.4 MILESTONES IN THE HISTORY

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

Governance Now BFSI -Digital Bank

Awards 2019. -Tech Trendsetter

Businessworld Magna -Best Large Bank

Awards 2019 -Fastest Growing Large Bank - Runner up

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.

The Banker Bank of the Bank of the Year - India

Year Awards 2018

The Banker Global Best Private Bank in India

Private Banking Awards
2018.

Mint - EY Emerging Winner - Robotic Process Automation (Software) category.

Technology Awards

Forbes' World's Best No. 1 Bank in India - HDFC Bank

Banks report

Euromoney Trade Best Service (Asian Banks only) - India

Finance Survey 2019 Market Leader (Asian Banks only) - India

The Financial Express Best Bank - New Private Sector category

India's Best Banks
Awards 2017-18

FE CFO Awards 2019 Best CFO / Newsmaker of the Year

Asiamoney Best Bank Best Digital Bank (India)

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

Outlook Money Awards Best Private Sector Bank Award - Gold

2019

IDC Financial Insights Asia's Most Secure Bank

Innovation Awards
(FIIA) 2019

Dun & Bradstreet BFSI India's Leading Bank - Private Sector

Awards 2019

Euromoney Private No. 1 in Asset Management category

Banking and Wealth
Management Survey
2019

Business Today - - Bank of the Year - HDFC Bank and SBI

KPMG India's Best Best Large Bank - HDFC Bank
Bank Awards 2019

FE Best Bank Awards Best Bank: New Private Sector

2018

The Economic Times Corporate Company of the Year

Excellence Awards 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.

NASSCOM AI Game Changer Awards Innovative Application in AI - Virtual Agent Engine

2018

Institutional Investor 2018 All-Asia Ranked in four categories -

Executive Team - Survey
• Best IR Professional: 2nd Rank among banks in Asia (ex-Japan)
• Best CEO: 2nd Rank
• Best CFO: 1st Rank
• Best IR Company: 3rd Rank

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 Corporate Award Best Bank

2018

Federation of Indian Export Best Bank : Export Finance - Non MSME

Organisation (FIEO)

Business Today Best Bank Awards Bank of the Year

Best in Innovation
Best Large Bank
Fastest Growing Large Bank

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

10th BW Businessworld-PwC Best - Fastest Growing Large Bank

Banks' (2017) Survey - Best Large Bank
- Lifetime Achievement Award - Mr. Aditya Puri

2017

Business India 19th Best Bank survey Best Bank for the year 2017 - HDFC Bank

The Asset Triple A Country Awards 2017 Best IPO, India

Fortune HDFC Bank MD Aditya Puri on Fortune Businessperson

of the year list

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

The Asian Banker Technology Innovation Awards - Best HR System Project

2017 - Best Lending Systems Project

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

Euromoney Awards for Excellence 2017 India's Best Bank

Asiamoney Best Brands in Finance Survey 2017 Best Banking Brand in India - HDFC Bank

Businessworld India's Best Banks' survey 2016 1. Best Bank - Overall

2. Fastest Growing Large Bank

Dun & Bradstreet Corporate Award 2017 India's Leading Bank - Private Sector

12th BML Munjal Awards 2017 Sustained Excellence in Learning & Development

The Financial Express India's Best Banks 2016 - Profitability: Rank 1

- Strength & Soundness: Rank 1
Bank of the Year

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

Asiamoney India Banking Awards 2017 Best Domestic Bank - India

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

Outlook Money Awards 2016 Bank of the year

Business Today - KPMG India's Best Banks 2016 Bank Of The Year (Private Sector)

Best Large Size Bank

Fastest Growing Large Bank

The Asset Triple A Country Awards 2016 1. Best IPO, India

2. Best QIP, India

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.”

2.6 QUALITY POLICY

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

Digital Services at HDFC Bank

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.

Bank industry leading service provides a host of features at customer finger-tips:

 View Account Balances & statements

 Transfer Funds between accounts
 Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills
 Order a cheque Book
 Request stop payment on cheques
 And lots more

Benefit of Net Banking

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:

 Check your account balance.

 Enquire on the cheque status.
 Have a mini statement faxed across to you.
 Request for a cheque book / Account statement.
 Enquire on your fixed deposits / TDS.
 Open a fixed deposit
 Request for Demand Draft / Managers Cheques.
 Transfer funds amongst your linked accounts
 Pay utility and HDFC Bank Credit Card bills.
 Do stop cheque payments.
 Report loss of your ATM /Debit Card.
 Product information.

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.

Uses of Mobile Banking:

Mobile Banking service provides a host of features at your finger-tips through SMS:

 Get your balance detail

 Obtain your last 3 transactions details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get fixed deposit detail
 Pay your bills

How does it work?

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.

See designated codes for GSM Phone.

See designated codes for Reliance India mobile Phones.

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.

How do avail of this service?

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.

Does it cost anything?

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.

 Debit transactions greater than Rs 5000 / 10000 / 200000 / 500000

 Credit in account greater than Rs 5000 / 10000 / 200000 / 500000
 Account balance below Rs 5000 / 10000 / 200000 / 500000
 Weekly account balance
 Salary Credits
 Utility bill payment due Alerts
All in all, company will be giving their employees an account that makes banking a pleasure for
them. While corporate save time and money by directly crediting there employees’ salary nation-
wide at one go.

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

What can I do using Insta Query?

 Get your balance details

 Obtain your last 3 transaction details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

How does it work?

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.

Balance Enquiry: Know your ledger balance and available balance.

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’s PayZapp

As smartphones are turning into wallets, several startups and banks have launched mobile
applications to enable peer-to-peer transactions, micro-payments as well as payment solutions for
merchants.

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 launches Chillr #GoDigital

 Partners with MobME for instant money transfer app

 App to enable customers to send money to any person on phone contact list

(L-R) Mr Nitin Chugh, Head, Digital

Banking, HDFC Bank Mr. Dhiraj Relli, Branch Banking Head, HDFC Bank and Mr. Sony Joy,
CEO Chillr, unveil the product at the launch

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.

Chillr allows users to send money in 3 simple steps:

1. Choose the recipient from your list of Chillr contacts

2. Enter the amount to be transferred & a message to recipient
3. Enter your secret M-PIN & press PAY

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”

– Nitin Chugh, Head, Digital Banking, HDFC Bank

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.

HDFC Bank to introduce Digital Wallet #GoDigital

 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”

HDFC Bank Watch Banking

A Step forward in our journey – Go Digital: Bank Aapki Mutthi Mein

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.

Features of HDFC Bank Watch Banking

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!

Security features and how will it work?

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

 Technology agnostic, runs on all popular mobile platforms

 Largest offering of its kind in the country with over 75 banking transactions
 55% of all transactions at HDFC Bank are conducted through digital channels
 Allows customers to book FDs, RDs, pay bills, taxes, buy insurance, mutual funds,
even loans

HDFC Bank today launched Bank

Aap Ki Muththi Mein, an offering that literally turns a mobile phone into a bank branch. A bank
branch the size of your palm that is with you round-the-clock, wherever you are.

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.

Mr. Nitin Chugh, Head – Digital Banking, HDFC Bank

Part of the Bank’s digital banking offering christened GoDigital, Bank Aap Ki Muththi Mein is
technology agnostic and runs on all mobile devices popular technology platforms support. As of
September 2014, India had over 900 million mobile users in the country but only 40 million
mobile banking customers.

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:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
main characteristic of this method is that the researcher has no control over the variables.

Sampling Design:

For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Varanasi.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the answers

to which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer ask
questions in a face to face contact to the other person.

SECONDARY DATA is the data which are available in the form of fact and figures. The sources
of secondary data are:

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

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.

Q3. According to you what is more convenient way for banking?

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.

Q4. Do you use Digital Banking Services of HDFC Bank?

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.

Q6. Which Digital banking services do you use at HDFC Bank?

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.

Q10. Do you use HDFC Bank Go Digital banking services?

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.

CONCLUSION & SUGGESTION

 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………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

 24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

Yes No

Q9. Which Digital Initiative of HDFC you know about?

Pay Zapp Chillr

Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

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?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

Q14. Any suggestions or recommendation to HDFC Bank?

BIBLIOGRAPHY

1. BOOKS

Marketing Management (10th Edition), Marketing Management (3rd Edition), Research

Methodology (2nd Edition), Research Methodology(3rd Edition).

AUTHORS: Philip Kotler ,V.S. Ramaswamy, C.R.Kothary, S.P. Kasande

2. NEWS PAPERS • Times of India • Financial Express

3. WEBSITES
www.hdfcbank.com, www.google.com