A PROJECT REPORT

ON
"CREDIT USERS"
AT
HDFC BANK
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE (COMPUTERS)

Submitted by
SYED IMTIYAZ HUSSAIN
1062-19-405-351
SYED KASHIF AHMED
1062-19-405-458
MIR MAQTADA ALI
1062-19-405-460
ABDUL SOHEB
1062-19-405-508

Under the Guidance of

Mrs. RAKSHI FATHIMA
(ASSISTANT PROFESSOR)

DEPARTMENT OF BUSINESS ADMINISTRATION

ANWAR-UL- ULOOM DEGREE COLLEGE (AUTONOMOUS)
(AFFILIATED TO OSMANIA UNIVERSITY)
NEW MALLEPALLY, HYDERABAD
(2019-2022)
 ANWARUL ULOOM DEGREECOLLEGE
An Autonomous Muslim Minority Institution
(Affiliated to Osmania University)
# 11-3-918, New Mallepally, Hyderabad – 500 001., A.P., INDIA
Tel : 23340134, 30582660, 30582678, 30582666, 23342285 Fax: 23342750

Ref No………………………………. Date:……………………………..

CERTIFICATE

This is to certify that SYED IMTIYAZ HUSSAIN bearing Roll No: 1062-19-
405-351 , SYED KASHIF AHMED bearing Roll No: 1062-19-405-458 ,
MIR MAQTADA ALI bearing Roll No: 1062-19-405-460 & ABDUL
SOHEB bearing Roll No: 1062-19-405-508 has successfully completed
they project work entitled “CREDIT USERS., and submitted in partial
fulfillment of the requirement for the award of the Degree of Bachelor of
Commerce (Computers) Administration by Osmania University, Hyderabad.

This is a bonafide work completed under my guidance and supervision.

Signature of Internal Guide Signature of H.O.D

Signature of Principal
 DECLARATION

We SYED IMTIYAZ HUSSAIN bearing Roll No: 1062-19-405-351 , SYED

KASHIF AHMED bearing Roll No: 1062-19-405-458 , MIR MAQTADA ALI
bearing Roll No: 1062-19-405-460 & ABDUL SOHEB bearing Roll No:
1062-19-405-508 the undersigned, hereby declare that the project report
entitled "CREDIT USERS " carried out at HDFC BANK is my original work
written and submitted by me in partial fulfillment of the award of the degree
of Bachelor of Commerce (Computers) from Anwar-Ul-Uloom Degree
College. We are also declare that this project has not been submitted earlier
in any other university or institution.

Date:

SYED IMTIYAZ HUSSAIN

1062-19-405-351
SYED KASHIF AHMED
1062-19-405-458
MIR MAQTADA ALI
1062-19-405-460
ABDUL SOHEB
1062-19-405-508
 ABSTRACT
This survey intends to find out the “bank credit card usage behavior” of
the consumers where store and other loyalty cards are excluded from this
survey. A survey is applied to 916 respondents selected via stratified
sampling of which 880 are found eligible to be analyzed;
Eskişehir is a city of Turkey with 700.000 inhabitants. The respondents
are required to answer 45 questions of which first eight are of descriptive
type on nominal scale and the last five are related to demographic
characteristics of these respondents. The rest 32 are statements which are
designed to reflect the credit card usage behavior of these people. The
study consists of five parts. The first part is an introduction where the
history of credit cards in Turkey together with the scope and the purpose of
the study are concisely stated. The second part relates to the theoretical
background of the subject matter and the prior researches carried out so
far. The third part deals with research methodology, basic premises and
hypotheses attached to these premises. Research model and analyses take
place in this section. Theoretical framework is built and a variable name is
assigned to each of the question asked or proposition forwarded to the
respondents of this survey. 32 statements or propositions given to the
respondents are placed on a five-point Likert scale where 1 represents
strongly disagree; 2 disagree; 3 neither agree nor disagree; 4 agree and 5
strongly agree. The last five questions about demographic traits as age,
gender, occupation, educational level and monthly income are placed
either on a nominal or ratio scale with respect to the nature of the trait.
Six research hypotheses are formulated in this section. The fourth part
mainly deals with the results of the hypothesis tests and a factor analysis
is applied to the data on hand. Here exploratory factor analysis reduces 32
variables to eight basic components. KMO test of sampling adequacy and
scale reliability test proved high scores as 0.891 and 0.696 respectively. In
addition non-parametric biraviate analysis in terms of Chi-Square test is
applied to test the hypotheses formulated in this respect.
 ACKNOWLEDGEMENT

We would like to acknowledge, my sincere thanks to Mr. Mohammed Abdul

Razzak, Principal of "Anwar-UI-Uloom Degree College (Autonomous)" for
the extended helping hand fir the development of my career.

We wish to express our sincere thanks to Dr. Aseem Khan H.O.D and our
express and sincere thanks to our Project Guide Mrs. Rakshi Fathima for
sharing his valuable dine in providing his valuable Knowledge, guidance and
excellent support for the successful completion of my project.

We express our sincere thanks to Mr. Ramakrishna Asst. Manager of

HDFC BANK for sharing his valuable time in providing his valuable
suggestions, information and excellent co-operation for the successful
completion of my Project.

We would like to acknowledge, our sincere thanks to all faculty members of

"Anwar-UI-Uloom Degree College (Autonomous)" who have extended
helping hand in giving the information being part of the study. We would
like to express our gratitude for all the people, who extended unending
support at all stages of the project.

SYED IMTIYAZ HUSSAIN

1062-19-405-351
SYED KASHIF AHMED
1062-19-405-458
MIR MAQTADA ALI
1062-19-405-460
ABDUL SOHEB
1062-19-405-508
 CONTENTS

CHAPTER NO TITLES PAGE NO

CHAPTER -I INTRODUCTION
 Need of the Study
 Objectives of the Study
1-13
 Scope of the Study
 Research Methodology
 Limitation of the study

CHAPTER –II COMPANY PROFILE 14-20

DATA ANALYSIS AND

CHAPTER – III 21-36
INTERPRETATIONS

SUMMARY &
CHAPTER – IV 37-41
SUGGESSIONS

BIBLIOGRAPHY 42-43
 LIST OF TABLES

Table Table Name Page

No No
1 AGE GROUP OF THE RESPONDENT 22
2 GENDER OF THE RESPONDENT 23

3 EDUCATION QUALIFICATION OF RESPONDENTS 24

4 MARITAL STATUS OF RESPONDENTS 25
5 Do you use a credit card 26

6 How did you apply for your domestic credit card 27

7 What is the highest category of the credit card you are using 28

8 Are you satisfied with your domestic credit card 29

9 How much do you approximately spend with your domestic 30

10 credit card times
How many per month
do you use your domestic credit card per 31
11 month?
Do you intend to apply for another domestic credit card in 32
the next 12?
12 When you use your credit card, what do you spend the most 33
13 money on?
In which of the following media do you often find advertising 34
for your credit card?

14 When you select a credit card, what are you more concerned 35
15 about?are the benefits of your domestic credit card in your
What 36
opinion?
 LIST OF FIGURES

Figure Figure Page

No No
1 AGE GROUP OF THE RESPONDENT 22

2 GENDER OF THE RESPONDENT 23

3 EDUCATION QUALIFICATION OF RESPONDENTS 24

4 MARITAL STATUS OF RESPONDENTS 25
5 Do you use a credit card 26

6 How did you apply for your domestic credit card 27

7 What is the highest category of the credit card you are using 28

8 Are you satisfied with your domestic credit card 29

9 How much do you approximately spend with your domestic 30

10 credit card times
How many per month
do you use your domestic credit card per 31
11 month?
Do you intend to apply for another domestic credit card in 32
the next 12?
12 When you use your credit card, what do you spend the most 33
13 money on?
In which of the following media do you often find advertising 34
for your credit card?
14 When you select a credit card, what are you more concerned 35
15 about?
What are the benefits of your domestic credit card in your 36
opinion?
 CHAPTER – I
INTRODUCTION

1
 INTRODUCTION

The Indian credit card industry is expected to grow at a CAGR of more than 25%
during 2020 - 2025 due to the increasing popularity of credit cards and the growing
trend of purchasing products first and paying later. The number of credit card users in
India in 2019 touched 52 million. Yet there are only about 3 credit cards for every 100
people in India, when compared to 32 cards in the USA. This shows that there is
higher penetration opportunity in India. With increasing popularity of credit cards,
banks are focusing on urban and semi-urban markets in order to increase their share in
the market.
A credit card is a payment card issued to users (cardholders) to enable the cardholder
to pay a merchant for goods and services based on the cardholder's promise to the
card issuer to paythem for the amounts plus the other agreed charges. The card issuer
(usually a bank) creates
a revolving account and grants a line of credit to the cardholder, from which the
cardholder canborrow money for payment to a merchant or as a cash advance.
A credit card is different from a charge card, which requires the balance to be repaid
in full each month or at the end of each statement cycle. In contrast, credit cards allow
the consumers to build a continuing balance of debt, subject to interest being charged.
A credit card also differs from a cash card, which can be used like currency by the
owner of the card. A credit card differs from a charge card also in that a credit card
typically involves a third-party entity that pays the seller and is reimbursed by the
buyer, whereas a charge card simply defers payment by the buyer until a later date. In
2018, there were 1.122 billion credit cards in circulation in the U.S
Early credit cards in the U.S., of which BankAmericard was the most prominent
example, were mass-produced and mass mailed unsolicited to bank customers who
were thought to be good credit risks. They have been mailed off to unemployable
people, drunks, narcotics addicts and to compulsive debtors, a process President
Johnson's Special Assistant Betty Furness found very like "giving sugar to diabetics".
These mass mailings were known as "drops" in banking terminology, and were
outlawed in 1970 due to the financial chaos they caused. However, by the time the law
came into effect, approximately 100 million credit cards had been dropped into the
U.S. population. After 1970, only credit2card applications could be sent unsolicited in
mass mailings.
Before the computerization of credit card systems in America, using a credit card to
pay at a merchant was significantly more complicated than it is today. Each time a
consumer wanted to use a credit card, the merchant would have to call their bank,
who in turn had to call the credit card company, which then had to have an employee
manually look up the customer's name and credit balance. This system was
computerized in 1973 under the leadership of Dee Hock, the first CEO of Visa,
allowing transaction time to decrease substantially to less than one minute.
However, until always-connected payment terminals became ubiquitous at the
beginning of the 21st century, it was common for a merchant to accept a charge,
especially below a threshold value or from a known and trusted customer, without
verifying it by phone.
Books with lists of stolen card numbers were distributed to merchants who were
supposed in any case to check cards against the list before accepting them, as well as
verifying the signature on the charge slip against that on the card. Merchants who
failed to take the time to follow the proper verification procedures were liable for
fraudulent charges, but because of the cumbersome
nature of the procedures, merchants would often simply skip some or all of them and
assume therisk for smaller transactions. The respondents are required to answer
45 questions of which first eight are of descriptive type on nominal scale and the last
five are related to demographic characteristics of these respondents. The rest 32 are
statements which are designed to reflect the credit card usage behavior of these
people. The study consists of five parts. The first part is an introduction where the
history of credit cards in Turkey together with the scope and the purpose of the study
are concisely stated. The second part relates to the theoretical background of the
subject matter and the prior researches carried out so far. The third part deals with
research methodology, basic premises and hypotheses attached to these premises.
Research model and analyses take place in this section. Theoretical framework is built
and a variable name is assigned to each of the question asked or proposition
forwarded to the respondents of this survey. 32 statements or propositions given to the
respondents are placed on a five-point Likert scale where 1 represents strongly
disagree; 2 disagree; 3 neither agree nor disagree; 4 agree and 5 strongly agree. The
last five questions about demographic traits as age, gender, occupation, educational
3 on a nominal or ratio scale with respect to
level and monthly income are placed either
the nature of the trait. Six research hypotheses are formulated in this section. The
fourth part mainly deals with the results of the hypothesis tests and a factor analysis is
applied to the data on hand. Here exploratory factor analysis reduces 32 variables to
eight basic components. KMO test of sampling adequacy and scale reliability test
proved high scores as 0.891 and 0.696 respectively. In addition non-parametric
biraviate analysis in terms of Chi-Square test is applied to test the hypotheses
formulated in this respect.
Theoretical literature on payment cards mainly focus on the distribution of payment card costs
in the network of card issuers, merchants and cardholders. The general implication from these
models (e.g. Rochet and Tirole, 2002; Agarwal, Chakravorti and Lunn, 2010) provide support
for the existence of reward programs: in order to increase card adoption and usage, card
issuers may charge fees to merchants and extend incentives to cardholders. However, most of
the conclusions are dependent on model parameters like the degree of competitiveness in the
market for goods and payment services along with consumer and merchant demand elasticity.
Other theoretical papers focus on those who pay for credit card rewards in equilibrium. For
example, Chakravorti and Emmons (2003) presented a theoretical model of side payment in
the competitive credit-card market and concluded that rewards offered by card issuers should
finally be funded by card users who roll over balances with interest if their subjective
discount rates are high enough
Sujit Chakravorti Credit cards provide benefits to consumers and merchants not provided by
otherpayment instruments as evidenced by their explosive growth in the number andvalue of
transactions over the last 20 years. Recently, credit card networks havecome under scrutiny
from regulators
and antitrust authorities around the world. Thecosts and benefits of credit cards to network
participants are discussed. Focusing oninterrelated bilateral transactions, several theoretical
models have been constructedto study the implications of several business practices of credit
card networks. Theresults and implications of these economic models along with future
research topicsare discussed
Ausubel, Lawrence M

The bank credit card market, containing 4,000 firms and lacking regulatory barriers,casually
appears to bea hospitable environment for the model of perfectcompetition. Nevertheless, this
article reports that credit card interest rates havebeen exceptionally sticky relative to the cost
of funds. Moreover, major credit cardissuers have persistently earned from three to five times
the ordinary rate of returnin banking during the periods 1983-88. The failure of the
competitive model appearsto be partly attributable
4 to consumers making credit card choices
without takingaccount of the very high probability that they will pay interest on their
outstandingbalances. Copyright 1991 by American Economic Association
Martha SoltSince the 1980s, Visa U.S.A. (Visa) and Master-Card International
(MasterCard), the bank- controlled credit card associations that together account for
approximately 70 percent of today'scredit card market, have been able to control the use of
and access to their networks to theadvantage of their bank members. Recently, however, the
credit card industry has beenchanging: some merchants are now large enough to exert their
own leverage, legal defeatshave impeded the ability of credit card associations to control the
market, and someparticipants have developed new arrangements and alliances that may be a
prelude to furtherchanges in the industry. This article surveys recent developments in an
industry that is facingnew competitive dynamics

The idea of credit has been around since the beginning of time almost. Credit as we
know today has only been around since the early 20th century. Credit cards today,
allow you to purchase anything anywhere, at any time. These cards are super small,
yet mighty, in all that they do and offer customers. They are such an important part of
the financial world.
Convenience Store

About a hundred years ago or so, if some visited their local convenience store often
and one day happened to be short to pay the bill, the store clerk could offer them the
items on credit. In small, close-knit towns this was an okay thing to do because
everyone knew each other, and there were much less people in towns to keep track of.
Diners Club Card

This was the first ever charge card. It was developed when Frank McNamara forgot
his wallet while having a business dinner. His wife picked up the tab that night, but he
vowed that he would never be embarrassed like that again. A year later he returned to
the same restaurant and developed the diners club card. It charged users $5 a year and
establishments 7% of each year. It wasn‟t until 1961 that the plastic Diners Club
charge card was introduced to the market. The charge card balance had to be paid at
the end of every month, but this was the start of the credit card innovation.

5
Visa/MasterCard
BankAmericard, now known as a Visa credit card, was the very first real credit card.
It was first issued in 1958. This card allowed you to make purchases, and pay back the
money over time, not all at once like charge cards required. The BankAmericard, was
named after Bank of America.
Eventually, through a cooperative, banks across the country were able to issue these
cards totheir customers. As a result, Visa was born in 1976.
Deregulation

There was a Supreme Court ruling that deregulated the banking systems control of
credit cards. It concluded that national banks could in fact charge consumers in other
states the interest rate set
in the bank‟s home state. If you got approved for a Visa card living in Illinois, which
originated in California, you‟d pay California interest rates. However, this caused a lot
of banks to move to states that didn‟t have a cap on interest rates, and they could make
them however high they wanted to.
Success of Reward Programs
Citibank was the first bank to offer rewards for using its credit card, it had a
partnership with American Airlines. This one deal, led to every other major credit
card company figuring out howto offer their customers rewards. It also caused people
to use their cards more, since they were being rewarded for it.
Credit Card Reforms

There was a reform package that prevented credit card companies from raising
interest rates on an account‟s current balance. It also prevented credit card companies
from changing the interest rate in the first year of the credit card agreement, unless
previously stated.
The Future

Credit cards will never go away. Companies will continuously come up with new
rewards systems and incentives to get people to sign up for them. However, to keep
6
their bottom line intact, credit card companies only vet the best consumers who will
be able to pay off their debts. It is possible that physical credit card use will grow less
and less popular, with things like Apple Pay, Samsung Pay, etc. it is just so convenient
to have everything you need, on your phone.
Credit card companies are also tasked with making sure that their customer‟s private
informationis secure at all times, and not just after there is a breach of sorts.

Credit cards have been constantly evolving since it has been mass produced to assist
people in their everyday lives. Nothing in life is constant, so it is likely that they will
only continue to change and get better over time.

The U.S. accounts for more credit card fraud than the rest of the world combined, so it
should come as no surprise that the country is moving to embrace more secure EMV-
enabled credit and debit cards. What may, however, be surprising is that the move
began not five or ten years ago, but at the beginning of October, about a decade or so
behind Europe and much of the rest of the developed world.

EMV is a technology that has virtually eradicated card-present credit fraud elsewhere,
but in the States it‟s off to a tepid start, with neither consumers nor retailers
particularly keen on switching
out payment cards or investing in new, EMV-compliant terminals. But thanks to new
rules that shift fraud liability from card issuers to retailers, the question of technology
adoption is no longer a matter of “if,” but “how quickly?”

As it turns out, the answer to “how quickly” is “well beyond the deadline,” with the
mass migration to EMV underscoring just how difficult it is to replace an estimated
1.2 billion credit cards and 15.5 million points of sale. Meanwhile, a pressing question
remains: with cyber crime on the rise, what security challenges won’t be solved by
EMV?

Until the mid 1990s, all credit and debit card transactions were processed in one of
two ways: A) via the magnetic stripe on the back of the card or B) through a physical
imprint of the raised numbers and text on the front. While the latter method has
mostly fallen into disuse, magnetic swipes
7 are still far and away the most common
method for processing transactions in the U.S.
There are a number of security flaws inherent to magnetic swipe transactions.
Someone who‟s learned to forge the signature on a lost or stolen card can easily use it
to make purchases and, often enough, merchants don‟t bother to verify the signature in
the first place. In recent years, it‟s also become increasingly simple for fraudsters to
obtain technology enabling them to read a magnetic swipe at the point of sale, and
then copy that information to a blank card, in effect
cloning the user‟s credit card.

Founded in 1994, originally the acronym “EMV” referred to Europay, Mastercard and
Visa, who together created the standard to provide better card security and overcome
some of these inherent challenges. Today it is managed by a consortium called
EMVCo, comprising the original members plus American Express, China Union Pay,
JCB and Discover/Diners Club International.

Early success – and U.S. resistance

Practically since day one, EMV-enabled cards have had an enormous impact on credit
and debit fraud worldwide. In France, where an early form of smart cards first
appeared in 1992, card fraud has dropped by more than 80 percent.

“Outside of the U.S. where they‟ve implemented EMV technology, card-present fraud
has been virtually eradicated,” said John Bourke, cyber insurance leader, financial
institutions for Aon Risk Solutions. “Obviously there are other avenues, but it‟s like
locking your car. Let the thief steal the car that‟s open or the one with the keys in the
ashtray.”

MasterCard‟s liability shift for most of Europe occurred on January 1, 2005, while
Visa‟s took place a year later. Many African and Asian countries transitioned around
the same time. In everyregion where it has been introduced, card fraud has fallen.

Yet despite EMV‟s early success in curbing card-present fraud around the world,
American businesses, banks, card issuers, as well as consumers all resisted the move
8
to new standards. This can be ascribed to a number of factors, albeit anecdotally.
Bourke says the primary reasons were aversion on the part of retailers to invest in new
POS terminals, and fear of alienating customers by disrupting entrenched transaction
habits (i.e. swiping as opposed to dipping).

No silver bullet

While the switch to EMV compliance is sure to reduce card-present fraud in the U.S.
as it has in other countries, it‟s important to note that it‟s far from a catch-call
solution. In the UK for instance, while certain kinds of card fraud dropped 67 percent
in the years following EMV adoption, incidents of card-not-present fraud
exploded.Many in fact argue that overall card fraud is still just as prevalent – it‟s
simply shifted to alternate channels.
But most strikingly, the U.S. card industry has mandated only chip and signature
cards, whereas the rest of the world utilizes chip-and-pin EMV cards. In effect, this
means that EMV protections will do nothing for lost and stolen cards. The industry
defends this by claiming that fraud from lost and stolen cards makes up a relatively
trivial percentage of overall fraud, but some estimates peg the number as high as 35
percent.

In either case, and in spite of the October 1 deadline, the rollout of millions of new
POS terminals – not to mention the more than 1 billion cards that need to be replaced
– is likely to bea protracted one.

While the U.S. rollout continues, Bourke notes that there are many unanswered
questions: What happens the next time a major case of card-present credit fraud is
caused by a non-EMV compliant terminal? Will credit fraud begin bankrupting
retailers? Will the rise of cyber risk – which entered the top 10 of perceived risks in
Aon‟s Global Risk Management Survey for the first time this year – mean that even
EMV begins to be perceived as insecure, and demand for biometric security begins to
rise?
None of this is outside the realm of possibility, but for now, there‟s little to do but
wait and watch as events unfold – while keeping an eye on the emerging hacks that
9
could make even today‟s improved financial security as safe as a purse with a hole in
it, and the emerging technologies that could make our money more secure than ever
before. “The real problem is that there are still very few EMV-certified solutions
available. Merchants with the most simplistic of point of sale configurations, a cash
register and a terminal, can buy EMV-ready terminals. But these are the same
merchants that are most likely to drag their feet through the upgrade process as the
business case is not very strong for low-volume merchants who don‟t see a lot of
chargebacks.” – Rick Oglesby, partner at Double Diamond Research
“While many of the major retailers transition to new point of sale systems, the
question for small to mid-size retailers is whether or not the benefits of chip
technology are reason enough to invest in new POS terminals immediately. Since this
is the first change in credit card technology at mass scale, we are interested to see if
consumers are more apt to utilize the transition time to explore new payment
technologies such as NFC and other contactless payment methods.” –
Kevin Levitt, vice president of business development at Credit Karma

“Although EMV cards provide greater security than traditional magnetic strip cards,
an EMV chip does not stop lost and stolen cards from being used in stores, or for
online or telephone purchases when the chip is not physically provided to the
merchant, referred to as a card-not- present transaction. Additionally, the data on the
magnetic strip of an EMV card can still be stolen if the merchant has not upgraded to
an EMV terminal and it becomes infected with data- capturing malware. Consumers
are urged to use the EMV feature of their new card wherever merchants accept it to
limit the exposure of their sensitive payment data.” – U.S. Federal Bureau of
Investigation

“It does seem somewhat puzzling this didn‟t happen sooner, especially when you
consider the cases where massive retailers have been breached and the issuing banks
effectively got stuck with card reissuance costs, lots of costs that technically they
probably did not have to eat. It was just a matter of time before the banks had to say,
„Hey, wait a minute.‟ If we‟re not all using the latest and greatest technology and as a
result of that there‟s fraud, then someone‟s got to pay.” – John Bourke, Cyber
Insurance Leader, Financial Institutions, Aon Risk Solutions.
10
 NEED OF THE STUDY
 Only charge what you can afford
 Make your payments on time, every time
 Don't just make minimum payments
 Know what to charge -- and what to avoid
 Choose your cards carefully
 Check your statements for problems

OBJECTIVES OF THE STUDY

1. Gain better understanding of the credit card users in India

2. To assess the priorities of credit card users in India.
3. Be informed regarding the top category adoption drivers of credit card users in India
4. Strategize marketing activities, entry into new markets, market expansion
and otherbusiness plans by understanding the factors driving growth in the market
5. Understand major competitors' strengths and weaknesses and respond
accordingly to benefit from the market

SCOPE OF THE STUDY

The credit card users are found in several states of India though mostly in the urban
areas. Looking at the extensive usage of credit cards among the educated group, the
investigator considers that the typical user of cards required to be educated about the
various types of credit cards accessible. This research points to observe the
experiences of the credit card users, the reimbursement that ensue to them and the
problems they countenance. The problems that the credit cards users face in its daily
usage. The precautions to be taken by the card users while using the credit cards. The
remedies and the redressal that is available to them in case of loss or theft of their
cards.

11
RESEARCH METHODOLOGY
The method of sampling used was random sampling. The main aim of the study was
to cover employee‟s at all hierarchical levels. Therefore, a sample of respondents
was chosen at each level of hierarchy in all the departments and services. The sample
size was taken as 50. The respondents were from 4 categories as Scientific Staff,
Technical Staff, Administrators, and Supporting Staff.
Respondents
Employee Details Supporting Technical Administrators Scientific
Staff Staff Staff
Total No. of. 700 100 105 100
Employees
Sample No. of. Employees 20 10 10 10

Sample selection is random from all the 4 categories.

DATA COLLECTION:
Data is recorded measure of phenomena. While deciding about the method of data
collection, the researcher should keep in the mind about two types of data. They are,
Primary Data andSecondary Data.
PRIMARY DATA:
The primary data has been collected through Questionnaire. The Questionnaire has
been properly prepared in order to cover all the information required for the study.
This Primary data was also collected through personal interview and interaction with
the officials and staff in the organization.
SECONDARY DATA:

Secondary data has been collected through the annual reports of the organization &
from the manuals. Some data was collected from the website of the organization
(www.hul.com) and (www.who.com).

The data was also collected from various publications in the magazines like HRM
12
Review, HRD, sap, people soft , oracle hr payroll process and policy‟s and journal like
Indian Journal of Industrial Relations and the various articles published in them.
COMPANY ADDRESS:

Address:- G2, Ground Floor, AGM Grandeur Nanalnagar, Jn, Rethibowli, Toli
Chowki, Hyderabad, Telangana 500008

LIMITATIONS OF THE STUDY

You can't pay your credit card balance in full and on time: If this tends to happen,
stick with thedebit card (or cash) to avoid falling into credit card debt and incurring
interest charges.
You tend to spend more than you can afford: Paying with debit will limit you to
spending moneyalready earned.
You can only get a credit card with a low credit limit and you have a hard time staying
under thebalance: Exceeding your credit limit results in costly fees, and doing this can
also put a dent in your credit score.

13
 CHAPTER – II
COMPANY PROFILE

14
 COMPANY PROFILE

FORMATION OF THE COMPANY

HDFC Bank is one of India‟s leading private banks and was among the first to
receive approval from the Reserve Bank of India (RBI) to set up a private sector bank
in 1994.

Today, HDFC Bank has a banking network of 5,485 branches and 14,533 ATMs
spread across 2,866 cities and towns.
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
15 with the bank's risk appetite. The bank is
healthy growth in profitability, consistent
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 Rs550 crore (Rs5.5 billion). The paid-up
capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's
equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 570,000
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'.

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. /Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the
scheme of amalgamation approved by the shareholders of both banks and the Reserve
Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every
5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in
terms of increased branch network, expanded geographic reach, enhanced customer
base, skilled manpower and the opportunity to cross-sell and leverage alternative
delivery channels.
DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1229 branches spread over 444 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
16
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 2526 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.
1) MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this,
Mr. Capoorwas a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over
25 yearsand 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.

2) 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
17 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.

3) 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.

RATING

I. CREDIT RATING

The Bank has its deposit programs rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)
has assigned the "tAAA (ind)" rating to the Bank's deposit programme, with the
18
outlook on the rating as "stable". This rating indicates "highest credit quality" where
"protection factors are very high".
 The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by
CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and
Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating
of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt.
Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable".
CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond
and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the
Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases
referred to above, the ratings awarded were the highest assigned by the rating agency
for those instruments.

II. CORPORATE GOVERNANCE RATING

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced
value creation and corporate governance practices" in future. The bank has been
assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability
with respect to wealth creation for all its stakeholders while adopting sound corporate
governance practices is the highest.

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
19 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.

20
 CHAPTER – III
DATA ANALYSIS AND
INTERPRETATION

21
 DEMOGRAPHIC PROFILE OF THE RESPONDENTS

AGE GROUP OF THE RESPONDENT

S.NO AGE No. Of respondent Percentage

1 15-24 22 15
2 25-34 38 25
3 35-44 60 40
4 Above 45 30 20
Total 150 100

INTERPRETATION

From the above table it is inferred that 40% of the respondents age group is 35-44,
25% of the respondents are in the age group is 25- 34, 20% of the respondents are in
the age group above45 and 15% of the respondents are in the age group of 15 -24.
AGE GROUP OF THE RESPONDENTS

AGE
20% 15%
15-24

25-34
25%
35-44

40% Above 45

22
 GENDER OF THE RESPONDENT

S.NO Gender No. Of respondent Percentage

1 Male 100 33
2 Female 50 67
3 Total 150 100

INTERPRETATION:

From the above table it is inferred that 67% of the respondents are male and 33
%of therespondents are female.
GENDER OF THE RESPONDENT

80%

70% 67%

P 60%
E
50%
R
C 40%
E 33%
N 30%
T
A 20%
G
10%
E
0%
Male Female

GENDER

23
 EDUCATION QUALIFICATION OF RESPONDENTS

S.NO Educational No. of respondent Percentage

qualification
1 SSLC 38 25
2 Hsc 32 21
3 Graduate 37 25
4 Diploma 20 13
5 Other specify 23 16
Total 150 100

INTERPRETATION
From the above table it is inferred that 25 % of the respondents completed SSLC &
Graduation respectively, 21% of the respondents completed HSC,13 % of the
respondents completed diploma and 16 %the respondents completed technical
courses.
EDUCATION QUALIFICATION OF RESPONDENTS

25% 25%
25%

21%

P 20%
E
16%
R
C 15% 13%
E
N
T 10%
A
G
E 5%

0%
SSLC hsc Graduate Diploma Other specify

24 QUALIFICATION
EDUCATION
MARITAL STATUS OF RESPONDENTS

S.NO Marital status No. Of Respondent Percentage

1 Married 120 80
2 Un married 30 20
3 Total 150 100

INTERPRETATION
from the above table it is infered that 80%of respondents are married and 20 % of
respondentsare unmarried.
MARITAL STATUS OF RESPONDENTS

80%

70%
P
E
R 60%
C
E 50%
N
T 80%
40%
A
G
E 30%

20%

20%
10%

0%
Married Un married

MARITAL STATUS

25
 4. Do you use a credit card?

S.NO YES/NO No. Of respondent Percentage

1 YES 75 75
2 NO 25 25
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 75% of the respondents are Yes and 25
%of therespondents are No.

80

70

60

50

40 YES
NO
30

20

10

0
No. Of respondent Percentage

26
5. How did you apply for your domestic credit card?

S.NO Applied No. Of respondent Percentage

1 My self 60 60
2 Company applied 20 20
for me
3 Supplementary credit 10 10
card
4 Others 10 10
5 Total 100 100

INTERPRETATION:

From the above table it is inferred that 60% of the respondents applied for credit
card byself and company applied is 20% remaining supplementary and others are 10
& 10 %.

No. Of respondent

My self

Company applied for me

Supplementary credit
card
Others

27
 6. What is the highest category of the credit card you are using?

S.NO Highest category No. Of respondent Percentage

1 Silver 70 70
2 Gold 10 10
3 Platinum 10 10
4 Titanium 10 10
5 total 100 100

INTERPRETATION:

From the above table it is analysed that the user for credit card highest
category fallsat Silver with 70 & whereas Gold, Platinum and Titanium usage is only
10%, 10%, 10%

80

70

60

50

40 No. Of respondent
Percentage
30

20

10

0
Silver Gold Platinum Titanium

28
 7. Are you satisfied with your domestic credit card?

S.NO Levels of satisfaction No. of respondent Percentage

1 Highly satisfied 60 60
2 Satisfied 10 10
3 Neutral 28 28
4 Dissatisfied 1 1
5 Highly dissatisfied 1 1
Total 100 100

INTERPRETATION

From the above table it is inferred that 28% of the respondents are neutral with ,10%
of the respondents are satisfied ,60 % of the respondents are highly satisfied, 1 % of
the respondents dissatisfied , 1 % of the respondents are highly dissatisfied.

70
60
50
40
30
No. of respondent
20
Percentage
10
0

29
8. How much do you approximately spend with your domestic credit card per month?

S.NO Approx spending No. of respondent Percentage

1 Up to 1000 5 5
2 1000-3000 10 10
3 3000-5000 10 10
4 5000-10000 55 55
5 10000 and above 20 20
Total 100 100

INTERPRETATION

From the above the table it is inferred that the person spending approximate is 55
% and 20% were spending for the highest amount, remaining 10 & 10% was spend on
the 1000-5000, the 5 % were given 1000.

No. of respondent

Up to 1000
1000-3000
3000-5000
5000-10000
10000 and above

30
 9. How many times do you use your domestic credit card per month?

S.NO Usage No. of respondent Percentage

1 Upto 4 times 10 10
2 4-6 times 20 20
3 6-10 times 20 20
4 More than 10 times. 50 50
5 Total 100 100

INTERPRETATION

From the above table it is analysed that the repsondents and the
percentage for the usage of credit card in a month for more than 10 time were 50% ,
20 & 20 % were for 4-10 timesand the remaining were 10 %.

60

50

40

30 No. of respondent
Percentage
20

10

0
Upto 4 times 4-6 times 6-10 times More than 10
times.

31
 10. Do you intend to apply for another domestic credit card in the next 12?

S.NO YES/NO No. Of respondent Percentage

1 YES 75 75
2 NO 25 25
3 Total 100 100

INTERPRETATION

From the above table it is analysed that the percentage for yes 75 % and for No it is
25%

80

70

60

50

40 YES
NO
30

20

10

0
No. Of respondent Percentage

32
11. When you use your credit card, what do you spend the most money on?

S.NO Area of spending No. Of respondent Percentage

1 Shopping mall 60 60
2 Restaurant 10 10
3 Online payment 15 15
4 Flight tickets 10 10
5 Health sports 5 5
total 100 100

INTERPRETATION

From the above table it is analysed that the respondent who use credit card
for shopping is 60%, restaurants were 10%, online payment are 15%, flight tickets
were 10 and last health were 5%.

No. Of respondent

Shopping mall
Restaurant
Online payment
Flight tickets
Health sports

33
 12. In which of the following media do you often find advertising for your credit card?

S.NO Advertisement No. Of respondent Percentage

1 Online 70 70
2 Bank mail 10 10
3 Newspaper 5 5
4 Magazines 5 5
5 Friends and relatives 10 10
total 100 100

INTERPRETATION

From the above table it is analysed that the respondent who find
advertisement of credit card through online is 60%, bank mail were 10%, newspaper
are 15%, magazines were 10and last friends and relatives were 5%.

80
70
60
50
40
30
20 No. Of respondent
10 Percentage
0

34
13. When you select a credit card, what are you more concerned about?

S.NO Concern No. Of respondent Percentage

1 High credit limit 20 20
2 Discounts 10 10
3 Attractive gifts for 1st 10 10
purchase
4 Types and value of 10 10
reward gift
5 Lost card protection 20 20
6 Fees for credit card 10 10
7 Online payment 20 20
safety
Total 100 100

INTERPRETATION

From the above table it is analysed that the respondent were 20% high
credit card limit, 10, 10, 10% for discount attractive gifts , 20 % for lost card
protection and 10, 20% for feeand online payment.

25
20
15
10
5
No. Of respondent
0
Percentage

35
14. What are the benefits of your domestic credit card in your opinion?

S.NO Concern No. Of respondent Percentage

1 Online 40 40
2 No cash 20 20
3 Credit card 20 20
instalment
4 Buy advance 10 10
5 Credit card points 10 10
6 Total 100 100

INTERPRETATION

From the above table it is analysed that the respondent were 20% high
credit card limit, 10, 10, 10% for discount attractive gifts , 20 % for lost card
protection and 10, 20% for feeand online payment.

No. Of respondent

Online
No cash
Credit card instalment
Buy advance
Credit card points

36
 CHAPTER – IV
SUMMARY AND CONCLUSION

37
 RESEARCH FINDINGS & SUGGESTIONS
 From the above table it is inferred that 40% of the respondents age group is 35-44,
25% of the respondents are in the age group is 25- 34, 20% of the respondents are in
the agegroup above 45 and 15% of the respondents are in the age group of 15 -24.
 From the above table it is inferred that 67% of the respondents are male and 33 %of
therespondents are female.
 From the above table it is inferred that 25 % of the respondents completed SSLC &
Graduation respectively, 21% of the respondents completed HSC,13 % of the
respondents completed diploma and 16 %the respondents completed technical
courses.
 from the above table it is infered that 80%of respondents are married and 20 % of
respondents are unmarried.
 From the above table it is inferred that 75% of the respondents are Yes and 25 %of
therespondents are No.
 From the above table it is inferred that 60% of the respondents applied for credit card
byself and company applied is 20% remaining supplementary and others are 10 & 10
%.
 From the above table it is analysed that the user for credit card highest category falls
at Silver From the above table it is inferred that 28% of the respondents are neutral
with
,10% of the respondents are satisfied ,60 % of the respondents are highly satisfied, 1
% ofthe respondents dissatisfied , 1 % of the respondents are highly dissatisfied. with
70 & whereas Gold, Platinum and Titanium usage is only 10%, 10%, 10%
 From the above the table it is inferred that the person spending approximate is 55 %
and 20% were spending for the highest amount, remaining 10 & 10% was spend on
the 1000-5000, the 5 % were given 1000.
 From the above table it is analysed that the repsondents and the percentage for the
usageof credit card in a month for more than 10 time were 50% , 20 & 20 % were for
4-10 times and the remaining were 10 %.
 From th From the above table it is analysed that the respondent who use
credit card for shopping is 60%, restaurants were 10%, online payment are 15%, flight
tickets were 10 and last health were 5%.e
38above table it is analysed that the percentage
for yes 75 % and for No it is 25%
 From the above table it is analysed that the respondent who find advertisement of
credit card through online is 60%, bank mail were 10%, newspaper are 15%,
magazines were10 and last friends and relatives were 5%.
 From the above table it is analysed that the respondent were 20% high credit card
limit, 10, 10, 10% for discount attractive gifts , 20 % for lost card protection and 10,
20% for fee and online payment.

39
 SUGGESTIONS
 From the above table it is inferred that 60% of the respondents applied for credit card
byself and company applied is 20% remaining supplementary and others are 10 & 10
%.
 From the above table it is analysed that the user for credit card highest category falls
at Silver From the above table it is inferred that 28% of the respondents are neutral
with
,10% of the respondents are satisfied ,60 % of the respondents are highly satisfied, 1
% ofthe respondents dissatisfied , 1 % of the respondents are highly dissatisfied. with
70 & whereas Gold, Platinum and Titanium usage is only 10%, 10%, 10%
 From the above the table it is inferred that the person spending approximate is 55 %
and 20% were spending for the highest amount, remaining 10 & 10% was spend on
the 1000-5000, the 5 % were given 1000.
 From the above table it is analysed that the repsondents and the percentage for the
usageof credit card in a month for more than 10 time were 50% , 20 & 20 % were for
4-10 times and the remaining were 10 %.

40
RECOMMENDATIONS
One good credit card may be a great help in cases of emergency or immediate
financial needs. Need to buy something but your wallet is empty of cash? Not a
problem! Having a credit card can get you out of an immediate jam. Are you
attempting to build a good credit score? You can do it with a credit card! Continue
perusing this piece to gain practical information about bank cards.
Keep up with your credit card purchases, so you do not overspend. Getting carried
away withcredit card spending is easy, so keep careful track each time you use it.
Always pay credit payments before they are due. This increases your credit score. If
you don‟t do this, you could incur costly fees and harm your credit score. Using
automatic payment features for your credit card payments will help save you both
money and time.

CREDIT CARD

Make sure you know the current interest rate of the credit card you are applying for. It
is extremely important before you sign on to getting that credit card that you must
know the interest rate. If you are unaware of the number, you might pay a great deal
more than you anticipated.
It‟s always a good idea to pay off your credit card in full every month, but this may be
impossible if you are paying more than you expected.
If you run into financial difficulty, let your credit card company know. You may be
able to adjust your payment plan so that you won‟t miss a credit card payment. Most
companies will work withyou if you contact them in advance. This may stop them
from turning in a late payment to the major reporting agencies.
Many times, credit cards are associated with loyalty programs. If you use credit cards
on a regular basis, it is wise to find one with a loyalty or rewards program that you
find personallyuseful. These programs can provide a source of income, when they are
used wisely.

41
BIBLIOGRAPHY

42
 BIBILIOGRAPHY

 Klein, Lloyd. It's in the cards: consumer credit and the American experience
(GreenwoodPublishing Group, 1999);
 Lee, Jinkook, and Kyoung‐Nan Kwon. "Consumers‟ use of credit cards: Store credit
card usage as an alternative payment and financing medium." Journal of Consumer
Affairs 36.2(2002): 239-262.
 Mandell, Lewis. The credit card industry: a history (Twayne Publishers, 1990).
 Manning, Robert D. Credit card nation: The consequences of America's addiction to
credit (Basic Books, 2001).
 Marron, Donncha. Consumer credit in the United States: A sociological perspective
from the19th century to the present (Palgrave Macmillan, 2009).
 Montgomerie, Johnna. "The financialization of the American credit cardindustry."
Competition & Change 10#3 (2006): 301-319.

43