Internship Report on

ORGANISATION STUDY AT “HDFC BANK RAICHUR “

By
SACHIN KUMAR
3SL23BA023
Submitted to
Visvesvaraya Technological University Belagavi
In partial fulfilment of requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Prof. VIJAY KUMAR PAVAN B
Asst. Prof.[MBA] Manager

H.K.E. SOCIETY’S
SIR M VISVESVARAYA COLLEGE OF ENGINEERING
DEPARTMENT OF MANAGEMENT STUDIES (MBA)
YERAMARAUS CAMP
RAICHUR -584135
2024-2025
 H.K.E SOCIETY
SMV COLLEGE OF ENGINEERING
YERAMARAUS CAMP, RAICHUR-584135
DEPARTMENT OF MBA

________________________________________________________________

CERTIFICATE

This is to certify that Mr Sachin Kumar bearing MBA at HKES SMV COLLEGE OF
ENGINEERING USN No 3SL23BA036 is a Bonafede student of MASTER OF BUSINESS
ADMINISTRATION course of Institute 2024-25, affiliated to VISVESWARAYA
TECHNOLOGICAL UNIVERSITY, Belagavi. He prepared a internship project on
“ORGANISATION STUDY” at “HDFC BANK RAICHUR” under the guidance of Prof.
Vijay Kumar in partial fulfilment of the requirement for degree of MASTER OF BUSINESS
ADMINISTRATION of Visvesvaraya Technological University, Belagavi Karnataka.

PROF. VIJAY KUMAR PROF B S CHICKMATH DR R BASAVARAJA

INTERNAL GUIDE HEAD OF DEPARTMENT PRINCIPAL

INTERNAL EXAMIER EXTERNAL EXAMINER

 DECLARATION

I Sachin Kumar Hereby declare that the Internship report entitled “Organisation Study” with
reference to “HDFC BANK RAICHUR” prepared by me under the guidance of Prof Vijay
Kumar faculty of Department of Management Studies (MBA) SMV College of Engineering
Raichur and external assistance by

I also declared that the internship report in towards the partial fulfilment of the university
regulation for the award of degree of Master of Business Administration by Visvesvaraya
Technological Universally Belagavi.

I have undergone a project for a period of four weeks. I further declare that this project is
based on the original study undertaken from any other University/Institution.

(Sachin kumar)
PLACE: Signature of student
DATE; USN 3SL23BA036
 ACKNOWLEDGEMENT

At the outset, I would like to place on record my sincere thanks to the management of HDFC
BANK RAICHUR for their kind permission to undertake corporate exposure learning in their
organisation.

I am very grateful to Pavan B My company guide who constantly guided me and inspired in
completion of this work for his kind co-operation , encouragement and for providing me with
all facilities in carting out my internship work.

I take this opportunity with pride and immense pleasure to thank Dr R Basavaraja Principal,
SMV Engineering College, Raichur who gave me an opportunity to undergo research study.

I owe my deep gratitude to our Prof. B S Chickmath HOD of MBA department who took keen
interest on our internship report and guided us all along, till the completion of our societal
project work by providing all the necessary information for developing a good system.

I am very grateful to Prof Vijay Kumar my college guide for supporting & helpful in furnishing
information and making this societal project possible.

I wish to express my heart full thanks to all the faculty members of MBA department for their
kind cooperation.

My special thanks to my family, my friends who have assisted me with moral support in
completing this project.

I hope reader friends of this report they will find it useful.

Thank you SACHIN KUMAR

3SL23BA036
MBA 3RD Sem
 TABLE OF CONTENT

Sl.no Title Page no

1 CHAPTER 1: INTRODUCTION OF ORGANISATION

CHAPTER 2: ORGANISATION PROFILE

Background
Nature of business
Vision
Mission
2
Work flow model
Products/ service profile
Ownership pattern
Achievements awards
Future growth and prospects

CHAPTER 3: MCKENSY’S 7S FRAME WORK AND

3
PORTERS FIVE FORCE MODEL

4 CHAPTER 4: SWOT ANALYSIS

5 CHAPTER 5: ANALYSIS OF FINANACIAL STATEMENT

6 CHAPTER 6: LEARNING EXPERIENCE

7 BIBLIOGRAPHY
 EXECUTIVE SUMMARY

This report includes an organizational study on HDFC Bank -Raichur . The title of the report
is "CUSTOMER SATISFACTION at HDFC Bank".

This report provides general information about the banking sector and HDFC company profile.
It also includes information that customers know about HDFC Bank’s services and products.

Through the following study customer satisfaction at HDFC Bank was found.

A structured questionnaire was the methodology adopted in the study. In which different people
in and around HDFC Bank – Raichur were targeted. In this study, I took a sample of 100
people. The data collected at sample size 100 is thoroughly analysed and displayed in tabular
and graphical form.

Business loans, credit cards, personal loans, debit cards, educational loans, fixed deposits,
savings accounts, gold loans, home loans, bank loan against property and car loans are some
of the popular products offered by HDFC Bank.

The two main reasons people invest in banks are security and returns. Indian consumers have
a mistaken perception of private banks - they think it's not safe. This perception can be changed
by satisfying consumers and making them feel safe when it comes to banking.

Empower employees, provide excellent self-service support, segment customers and create
personalized customer experiences, stay consistent with all points of contact, educate
customers on financial literacy, improve financial technology and not be just a lender, but also
be a advisor for small businesses. These are some ways in which customer satisfaction levels
could be increased at HDFC Bank.
 CHAPTER 1:

INTRODUCTION OF ORGANISATION AND INDUSTRY

INTRODUCTION OF ORGANISATION

HDFC BANK

The Reserved Bank of India approved "in principle" the first housing development company
in the year 1944, HDFC who were the first among the others to establish a private sector bank
as part of the liberal Indian banking sector by RBI. . On August 1944, it was registered with an
office based Mumbai and received the name of "HDFC bank limited". In January 1995, HDFC
Bank began operating as a planned commercial bank.

HDFC is proud of its incredible performance not only in India but also in other international
markets. It is well known as the premier executive housing finance company in India. To be
the leader in mortgage credit market the company has maintained a reliable growth from its
inception in 1977. HDFC has secured a broad client base from the corporate sector for its home-
based credit facilities and retail mortgage expertise in advanced and other market segments. It
is well positioned to promote the bank in the Indian market because of its strong market
reputation and its highly qualified experience in the financial markets.

In 1995, the facile mission, ‘World Class Indian Bank’ had been the starting point for the HDFC
bank to begin its operations. They soon came to the realisation that an individually driven mind
that put great emphasis on the product quality and service excellence would be the only way to
achieve their mission. As for today, the bank can proudly declare that they are not far from
reaching their goals.
HDFC Bank Limited

Company type Public

Traded as  NSE: HDFCBANK

 BSE: 500180

 NYSE: HDB (ADS)

 BSE SENSEX constituent

 NSE NIFTY
50 constituent

ISIN INE040A01034

Industry Banking
Financial services

Founded August 1994 (30 years ago)

Headquarters Mumbai, Maharashtra

India

Number of 9,092 branches

locations 20,993 ATMs[1]

Area served India

Key people  Atanu Chakraborty

(Chairman)[2]
  Sashidhar Jagdishan
(CEO)

Products  Consumer banking

 Commercial banking

 Insurance

 Credit cards

 Investment banking

 Mortgage loans

 Private banking

 Private equity

 Investment management

 Asset management

 Mutual funds

 Exchange-traded funds

 Index funds

 Wealth management [3]

 Stockbroking

 Risk management

Revenue ₹407,994
crore (US$47 billion) (2024)

Operating ₹76,568
income crore (US$8.8 billion) (2024)

Net income ₹64,062

crore (US$7.4 billion) (2024)
Total assets ₹36.17 lakh
crore (US$420 billion) (2024)

Total equity ₹4.53 lakh

crore (US$52 billion) (2024)

Number of 213,527 (31 March 2024)[4]

employees

Subsidiaries HDFC Life

HDFC ERGO
HDFC Securities[5]
HDFC AMC (HDFC Mutual
Fund)
HDB Financial Services[6]
HDFC Capital Advisors
 CHAPTER 2:

ORGANISATION PROFILE

BACKGROUND

Phase - I

The General Bank of India was established in the year 1786. Banks in Bengal and Hindustan
have since been established. In 1809, the East India Company was called the Presidential Banks
in 1843, when the bank of Mumbai and Bank of Madras were established as independent banks
in 1840. In 1920, these three banks emerged. Imperial Bank of Indi launched and founded
European shareholders and individual shareholders.

The first exclusive bank in India was the Allahabad Bank and was founded in 1965. The Punjab
National Bank Ltd. was founded in 1894 and is headquartered in Lahore. The Indian Bank,
Canara Bank, Indian Bank, Mysore Central Bank in India and Baroda Bank were established
between 1906 and 1913, in 1935 the Reserve Bank of India was established.

The growth at this phase was very slow and faced periodic failures between the years 1913 and
1948. In 1949, the Indian Government proposed the Banking Companies Act to simplify the
functions and activities of commercial banks. This law was later amended to become the
Banking Regulations Act of 1949, in accordance with the amended Act of 1965. The Reserve
Bank of India is authorized with wide power to supervise the banks in India.

At that time the public had low confidence in the bank. The mobilization of deposits was very
slow in the wake. The postal service offered a better savings bank and was relatively safe.
Merchants also received more money.

Phase – II

After independence, the reform of the Indian banking sector by the government has reached
important milestones. In 1955, in the urban and rural areas the Imperial Bank of India was
nationalized through large scale banking facilities. The State Bank of India was created to
manage federal and provincial government banking across the country and served as a key
agent for RBI.
On July 19, 1960, the seven banks constituting the subsidiaries of the State Bank of India were
nationalized. Former Indian Prime Minister Indira Gandhi has made considerable efforts to
nationalize the country's commercial banks.

Seven banks that continued the reform of the banking sector in 1980 were carried out during
the second stage of nationalization. In India, 80% of the banking sector belongs to the
government.

To regulate the banking system in India the Indian government has taken the following steps:

The decree implementing the Banking Act dates from 1949.

The State Bank of India was nationalized in 1955.

The State Bank of India subsidiary was nationalized in 1959.

The coverage of insurance was extended to deposits until 1961.

14 major banks were nationalized in the year 1969.

In 1971 credit guarantee companies were established.

Local rural bank was created in 1975.

Seven banks with more than 200 deposits were nationalized in 1980.

After nationalization of banks public sector agencies grew to about 800 percent of deposits,
and a substantial increase of 11,000 percent thereafter.

Public banks have a lot of confidence in sustainability.

Phase III

At this point, there was an introducing to facilities in the banking sector with more products.
The committee was created in 1991 and was working on the liberalization of banking practices
under the chairmanship of Mr Narasimham.

Foreign banks and ATMs flood the country. More important than money over time, we have
implemented more convenient online and telephone banking. We strive to provide a
satisfactory service to our customers.
The Indian financial system is highly resilient. It is protected from crises caused by external
macroeconomic shocks, as has been the case for other East Asian countries. Indeed, they all
have flexible exchange rate, high foreign exchange, capital accounts but are not yet fully
convertible. Banks and their clients have limited exposure to currency risk.

OWNERSHIP PATTERN

Percentage of holding
Foreign Institutional
Investors (FIIs)
11%
Mutual Funds
16%
49%
Retail and others
24%
Other Domestic
Institutions

VISION

 Through high sustained earnings per share, maximize the share holder value.

 Be a pioneer of development finance (housing) in the country.

 To be a banking institution with mutual cultural attention and dedication.

 A satisfying and excellent work environment offering continuous learning

opportunities.

MISSION

Reposition the bank as the best Indian financial service group and take a strong global
commitment to customer satisfaction, shareholder and employee satisfaction. Also play a
leading role in the expansion & diversification of financial services with a focus on
development.
NATURE OF BUSINESS

1. Retail Banking

HDFC Bank provides comprehensive retail banking services, including savings and current
accounts, personal loans, home loans, credit cards, fixed deposits, and investment products. It
focuses on delivering a seamless banking experience through both physical branches and
digital platforms.

2. Corporate Banking

The bank offers various services to corporate clients, including working capital financing,
trade finance, treasury services, and corporate loans. It caters to businesses of all sizes, from
SMEs to large corporations, providing them with tailored financial solutions.

3. Treasury and Investment Banking

HDFC Bank also provides treasury services, including foreign exchange, derivatives, and
investment management. It assists corporate clients with funding, liquidity management, and
risk hedging. Additionally, it offers wealth management and private banking services to high-
net-worth individuals (HNIs).

4. Digital Banking

As part of its modernization strategy, HDFC Bank has invested heavily in digital banking.
This includes mobile banking apps, UPI-based payment solutions, and online loan
applications. The bank aims to provide a seamless, customer-centric experience through
digital channels.

5. Insurance and Asset Management

HDFC Bank, in collaboration with its affiliates, offers insurance and asset management
services. This includes life and general insurance products, as well as mutual funds and
investment solutions, expanding its financial service offerings beyond traditional banking.
WORKFLOW MODEL

1. Organizational Restructuring:

In April 2021, HDFC Bank launched "Project Future – Ready," reorganizing its
operations into three main pillars:

 Business Verticals: Encompassing Corporate Banking, Retail Banking,

Private Banking, Government and Institutional Banking, Retail Assets, and
Payments. A significant emphasis is placed on Commercial Banking
(MSME) to support India's economic backbone.

 Delivery Channels: Including Branch Banking, Tele-service/sales (such as

Virtual Relationship Manager channels), Sales Channels aligned with
business verticals, and Digital Marketing. This structure aims to enhance
customer reach across diverse regions.

 Technology/Digital: Serving as the core backbone, the bank is investing in

technology transformation to support and integrate all business and
delivery channels.

2. Digital and Enterprise Factories:

To drive digital innovation, HDFC Bank established Digital and Enterprise

Factories in June 2021. These units focus on:

 Digital Factory: Developing new digital products and services with high
resiliency and scalability, leveraging APIs, data, and cloud technologies.

 Enterprise Factory: Upgrading legacy systems, decoupling existing

infrastructures, and embracing open-source solutions to build resilience
and scale.

The bank plans to hire up to 500 professionals over two years to strengthen these
factories.
3. Process Automation and Business Process Management (BPM):

HDFC Bank has been proactive in automating its business processes to reduce
manual interventions and standardize services. Notably:

 In 2003, the bank implemented Staff ware’s Process Suite to automate and
centralize processes like account opening and trade finance.

 By 2004, the bank reported optimal resource utilization, improved

turnaround times, and enhanced auditing controls due to BPM adoption.

4. Collaborative Innovation Approach:

Adopting a 'One Bank' vision, HDFC Bank formed 'agile pod teams' comprising
members from various departments to drive innovation. This approach has
expedited projects like instant account opening and biometric KYC, reducing
decision-making time and enhancing customer services.

Through these strategic initiatives, HDFC Bank's workflow model in India

emphasizes agility, technological integration, and customer-centric services,
positioning the bank for sustained growth and operational excellence.
HDFC COMPETITORS

ICICI Bank

Axis Bank

State Bank of India

Kotak Mahindra Bank

IndusInd Bank

1. ICICI Bank:
 Overview: ICICI Bank is a major private sector bank in India, offering a wide range of
banking products and financial services to corporate and retail customers.
 Competitive Dynamics: Both HDFC Bank and ICICI Bank compete across various
segments, including retail banking, corporate banking, and digital services. The
competition is particularly intense in areas like home loans, personal loans, and credit
cards.
2. Axis Bank:
 Overview: Axis Bank is another prominent private sector bank in India, providing a
comprehensive suite of financial products and services.
 Competitive Dynamics: Axis Bank and HDFC Bank vie for market share in retail and
corporate banking sectors. Both banks focus on expanding their digital offerings and
enhancing customer experience to attract and retain customers.
3. State Bank of India (SBI):
 Overview: SBI is the largest public sector bank in India, with an extensive network of
branches and a diverse range of financial services.
 Competitive Dynamics: Despite being a public sector entity, SBI competes with
HDFC Bank in various domains, including retail lending, deposits, and digital banking
services. SBI's vast reach and government backing provide it with a unique competitive
edge.
4. Kotak Mahindra Bank:
 Overview: Kotak Mahindra Bank is a fast-growing private sector bank in India,
offering a range of banking and financial services.
 Competitive Dynamics: Kotak Mahindra Bank competes with HDFC Bank in
segments like wealth management, retail banking, and digital initiatives. Both banks
strive to innovate and provide superior services to their customers.
5. IndusInd Bank:
 Overview: IndusInd Bank is a private sector bank known for its robust retail banking
services and a growing presence in corporate banking.
 Competitive Dynamics: IndusInd Bank and HDFC Bank compete in areas such as
vehicle loans, personal banking, and SME lending. Both banks focus on expanding their
product portfolios and enhancing customer service.
Areas of Competition:
 Retail Banking: Competition is fierce in attracting retail customers for savings
accounts, fixed deposits, and personal loans. Banks offer competitive interest rates and
personalized services to gain market share.
 Digital Banking: With the increasing adoption of technology, banks are investing
heavily in digital platforms to provide seamless online banking experiences. Features
like mobile banking apps, internet banking, and digital payment solutions are key
competitive areas.
 Corporate Banking: Banks compete to offer tailored financial solutions to businesses,
including loans, credit facilities, and treasury services. Building strong relationships
with corporate clients is crucial for market leadership.
 Wealth Management: Providing investment advisory services and wealth
management solutions is another area where banks like HDFC, ICICI, and Kotak
Mahindra compete to attract high-net-worth individuals.
 PRODUCT -PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

 Working Capital  Safe Deposit  Knowledge Centre

Finance Lockers
 Equity and Derivatives
 Construction  Fixed deposit
 Mudra Gold Bar
Equipment
 Demat a/c
 Insurance
 Health Care
 Saving a/c
 Mutual Fund
 Vehicles
 Current a/c
 Bonds
 Home loans
 General and Health
 Retail business
Insurance
banking

 Loan Against Property

 Personal loan

 Auto Loan

 Loan Against Security

 Credit card

 2-wheeler

 Education

 Gold

 Commercial
 Cards  Payment  Access To Bank
Services

 Credit Card  Net Safe  Instant Alert Mobile

Banking
 Debit Card  E–Money
Electronic  ATM
 Prepaid Card
Funds Transfer
 Phone Banking
 Online Payment
 Net Banking
for Direct Tax
 One View
 Merchant
 Branch Network
 Prepaid Refill
 Email Statements
 Direct Pay

 Visa Money
Transfer

 Bill pay

 Visa Bill pay

 InstaPay

 Forex Services

 Product & Services

 Forex service Branch Locater

 RBI Guidelines

 Trade Services
ACHIEVEMENTS/ AWARD FOR 2024

1. Best Private Bank in India

HDFC Bank was honoured as the 'Best Private Bank in India' at the Global Private Banking
Awards 2024, organized by Professional Wealth Management (PWM), a Financial Times
publication.

2. Best Bank for SMEs

At the Euromoney Awards for Excellence 2024, HDFC Bank was recognized as the 'Best Bank
for SMEs' in India, acknowledging its significant contributions to the growth and support of
small and medium-sized enterprises.

3. Payment Innovation Award

HDFC Bank's digital payment solution, PayZapp, received the Celent Model Bank Award 2024
in the 'Payment Innovation' category, reflecting the bank's commitment to advancing digital
payment technologies.

4. Best Performance on Growth

The bank was adjudged the winner in the 'Best Performance on Growth (Private Sector Bank
– Large)' category at the 2nd ICC Emerging Asia Banking Conclave & Awards 2024,
recognizing its robust growth trajectory.

5. Great Place To Work Certification

HDFC Bank was certified as a 'Great Place To Work' for the year 2024-2025, underscoring its
commitment to fostering a positive and inclusive workplace culture.

These accolades reflect HDFC Bank's dedication to excellence in banking services, innovation
in digital solutions, and commitment to employee well-being throughout 2024.
FUTURE GROWTH AND PROSPECTS OF HDFC BANK

1. Focus on Digital Transformation

HDFC Bank is heavily investing in technology to enhance customer experience,

increase operational efficiency, and expand its digital footprint.

 Digital & Enterprise Factories: The establishment of these factories is

enabling the bank to develop innovative digital products, upgrade legacy
systems, and adopt new technologies like APIs, cloud computing, and
open-source platforms.

 Enhanced Digital Offerings: HDFC Bank’s continued focus on mobile

banking, UPI, and digital payment solutions positions it to capture a larger
share of the digital-savvy customer base.

2. Expansion in Rural and Semi-Urban Markets

 With urban areas reaching saturation, HDFC Bank is focusing on

expanding its presence in rural and semi-urban regions where banking
penetration is still low.

 Its initiatives in financial inclusion, micro-lending, and agriculture

financing are likely to boost growth in these untapped markets.

3. Growth in Retail and MSME Lending

 Retail Lending: HDFC Bank remains a leader in retail banking, with

growing demand for home loans, personal loans, and vehicle loans.

 MSME Segment: Its focus on supporting small and medium-sized

enterprises aligns with the Indian government's "Make in India" initiative
and the push for MSME growth, which is a key driver of the Indian
economy.
4. Strategic Mergers and Acquisitions

 The merger with HDFC Ltd. (completed in 2023) has strengthened the
bank's position in housing finance and expanded its customer base, creating
opportunities for cross-selling and portfolio diversification.

 The combined entity is better positioned to leverage synergies across

lending and deposit products.

5. Technological Innovations and AI Integration

 HDFC Bank is embracing AI, machine learning, and data analytics to offer
personalized services, improve risk management, and optimize customer
engagement.

 Initiatives like chatbots, predictive analytics, and AI-driven credit scoring

are expected to enhance customer satisfaction and operational efficiency.

6. Regulatory and Macroeconomic Support

 India's economic growth trajectory, supported by government reforms and

increasing per capita income, provides a conducive environment for the
banking sector.

 The push for digital payments and financial inclusion by the Indian
government aligns with HDFC Bank’s growth strategy.

7. Focus on Sustainability and ESG Initiatives

 HDFC Bank is actively integrating Environmental, Social, and Governance

(ESG) principles into its operations, focusing on green banking, renewable
energy financing, and social impact initiatives.

 This positions the bank favorably among investors who prioritize

sustainable and socially responsible businesses.
8. Robust Financial Performance

 Strong capital adequacy ratios, healthy asset quality, and consistent

profitability ensure that HDFC Bank remains resilient and ready to scale
operations.

 Its prudent risk management practices protect it from economic shocks,

ensuring sustained growth.
 CHAPTER 3:

MCKENSY’S 7S FRAME WORK AND PORTERS FIVE FORCE

MODEL

MCKENSY’S 7S FRAME WORK

The Mckensey 7s model is a strategic tool and framework that helps managers and businesses
assess their performance. The Mckensey 7s model identifies 7 key elements for an organization
that need to be focused and aligned for successful change management processes as well as for
regular performance enhancement

1. Strategy

HDFC Bank's strategy revolves around leveraging technology, enhancing customer experience,
and maintaining financial stability. The merger with HDFC Ltd. highlights its focus on
expanding housing finance and retail banking. By targeting digital transformation and rural
markets, the bank aims for sustainable growth and increased market penetration.

2. Structure

HDFC Bank operates with a hierarchical yet collaborative structure. The organization is
divided into specialized verticals like Retail Banking, Corporate Banking, and SME Banking,
supported by centralized decision-making processes. This enables efficiency while retaining
the flexibility to adapt to market changes.
3. Systems

The bank employs advanced systems for operations, risk management, and customer service.
Digital platforms like PayZapp and robust IT infrastructure streamline services, while
Enterprise and Digital Factories innovate products. Automated workflows and AI-driven tools
improve efficiency and scalability.

4. Shared Values

Customer centricity, integrity, and sustainability are at the core of HDFC Bank's shared values.
The bank prioritizes long-term relationships, financial inclusion, and social responsibility,
aligning with its vision of being a trusted financial partner for millions of Indians.

5. Style

HDFC Bank's management style is professional and goal-oriented, with a strong emphasis on
performance and innovation. Leadership fosters a collaborative and inclusive culture, ensuring
employees align with the bank's growth vision. Decision-making is data-driven and agile,
facilitating quick adaptation to market dynamics.

6. Staff

HDFC Bank invests significantly in its workforce, emphasizing training, diversity, and
employee engagement. The bank promotes a culture of learning and development through
programs that enhance technical and soft skills, ensuring staff are equipped to handle dynamic
banking requirements.

7. Skills

The bank boasts a highly skilled workforce proficient in financial services, risk management,
and digital technologies. Its expertise in retail and SME banking, along with innovation in
digital solutions, positions it as a leader in India’s competitive banking landscape.
PORTERS FIVE FORCE MODEL

First published in 1998, “How Competitive Forces Shape Strategy” by Michael E. Porter,
revolutionized the field of strategy. Popularly known as “Porter’s Five Forces” - not only
influenced a generation of academic research but also provided a map to rigorously analyse the
competitive forces.

1. Threat of New Entrants

The banking sector has high entry barriers due to regulatory requirements, capital needs, and
customer trust. While fintech startups pose a challenge, HDFC Bank’s established brand,
extensive network, and advanced technology create a significant competitive moat against new
entrants.

2. Bargaining Power of Suppliers

Suppliers in banking include depositors and funding sources. With a vast customer base and
strong brand loyalty, HDFC Bank maintains a diversified and stable funding structure, reducing
dependency on any single supplier. Competitive interest rates and superior services help retain
depositors.
3. Bargaining Power of Buyers

Buyers (customers) have moderate power due to the availability of numerous banks and
financial products. However, HDFC Bank mitigates this through differentiated offerings,
personalized services, and seamless digital experiences, fostering customer loyalty and
reducing churn.

4. Threat of Substitutes

Substitutes for banking services include non-banking financial companies (NBFCs), fintech
platforms, and peer-to-peer lending. While these alternatives challenge traditional banking,
HDFC Bank counters this by integrating innovative digital solutions like PayZapp and
SmartHub to stay competitive.

5. Industry Rivalry

Competition is intense, with rivals like ICICI Bank, Axis Bank, and SBI competing for market
share in retail and corporate banking. HDFC Bank leverages its robust digital infrastructure,
customer-centric approach, and extensive service portfolio to maintain its leadership position
 CHAPTER 4:

SWOT ANALYSIS

SWOT analysis of HDFC Bank analyses the brand

by its strengths, weaknesses, opportunities &
threats. In SWOT Analysis, the strengths and
weaknesses are the internal factors whereas
opportunities and threats are the external factors.
SWOT Analysis is a proven management
framework which enables a brand like HDFC to
benchmark its services & performance as
compared to the competitors. HDFC Bank is one
of the leading in the banking sector.

Strength

 The second largest private bank in India is HDFC. Across India this private sector has
13,160 automated teller machines HDFC Bank is successfully running 4,963 branches
in 2,727 cities.

 HDFC ATM bank cards are a popular choice online transactions and shopping, one of
the reasons being that the cards are internationally compatible with all MasterCard/
Visa, Visa electron / Maestro and American express cards. In compassion to other
private banking branches HDFC have a high of customer satisfaction rate.

 HDFC provides highly skilled staff who are able to help customers make sensible
investments. Working in private banking can be a stressful and draining job however
the attrition rates at HDFC making it one of the better companies to work for within the
private banking sector.

 HDFC has a good recognition among the people and they have received a lot of
awards:-

 The guidance of HDFC Bank’s financial advisors are good when it comes to guide the
customers to make the right investments.
Weakness

 In contrast, HDFC still have difficulties with competitors for example in rural areas
ICICI bank has a stronger presence and popularity.

 Individuals using private banking in rural areas feel safe and secure with their bank,
which makes it difficult for HDFC to be considered for banking with them.

 HDFC has created doubt in investors’ minds and may have lost out on investors due to
their constant increasing and decreasing of share prices.

 There is lack in performance in the banks product categories and it is not reached in the
market.

 High end clients are only been focused by the banks. Middle class and others are been
ignored most of the time.

Opportunities

 When it comes down to debt HDFC have more opportunities compared to the other
government banks this is due to the fact that they have worked to recover from its bad
debt and improve it's bad debt portfolio.

 HDFC have many branches in different countries and continue to prosper and gain more
opportunities abroad.

 The company has the opportunity for a growth in profit rate, due to the fact that the
assets quality parameters are beneficial when compared to government banks.

 Due to strong financial positions there are greater scope for acquisitions and strategic
alliances.
Threats

 ICICI still remain a threat to HDFC which makes it difficult to widen market share.

 Government banks are constantly working on ways to become more modernized which
is increasing the competition between government and private banks such as HDFC.

 Foreign banks have received up to 74% from the RBI for bank investments within India
this will threaten banks such as HDFC

 Private Banks, new age banks and non-banking financial companies are increasing in
India.

 There is an increase of 0.18% to 0.20% in the non-performing assets (NPA) of HDFC.

Even though it is a minor change in terms of financial health of the bank it isn’t a good
sign.
 CHAPTER 5:

ANALYSIS OF FINANACIAL STATEMENT

 CHAPTER 6:

LEARNING EXPERIENCE