SUMMER TRAINING PROJECT

REPORT
On
DIGITALIZATION IMPROVED THE BANKING
SERVICES WITH SPECIAL REFERENCE TO HDFC
BANK

Towards partial fulfillment of

Integrated Master of Business Administration (IMBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
Tasneem Subhan
VIIth Semester
Roll No-1130675098

Under Supervision of
Vishnu Pratap Singh Chauhan
Assistant Vice President

Session 2016-2017
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
CERTIFICATE FROM THE ORGANIZATION
BONA-FIDE CERTIFICATE OF DEAN-SCHOOL OF MANAGEMENT
 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its
existence to the constant support and guidance of a number of people. I am grateful to all
of them.

I owe a never-ending debt of gratitude to Dr. Nidhi Agarwal and Mr. Vishnu Pratap Singh
Chauhan for their expert guidance and support.

I would like to thank all the respondents for giving their valuable time and providing
useful information.

I am also grateful to all those who have either directly or indirectly contributed towards
the completion of the project, for their support and encouragement.

Tasneem Subhan
 DECLARATION

I do hereby declare that the Summer Internship Project Report titled Digital Products
and Initiatives in HDFC Bank Limited submitted by me towards the partial fulfilment
of the requirement of Integrated Master of Business Administration, exclusively prepared
and conceptualized by me and is not submitted to any other Institution or University or
published anywhere before for the reward of any Degree/Diploma/Certificate. It is the
Original work of mine and has not been obtained from any other part.

Tasneem Subhan

IMBA (7th SEM)

 PREFACE

As a part of our course curriculum I had to go through a Summer Internship Project

Report on any topic to get the right exposure to the practical aspects of business
management.

I want to express my gratitude for the experience and practical knowledge that I earned
during the Summer Internship. In this project report I had presented my great experience
in the form of words. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to
its competitors. I have enjoyed my report preparation and have learnt lots of new things. I
have tried my level best to make this report a reader friendly & also did my level best to
fulfil the objective of the study.
 TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
a. Meaning and Definition
b. Indian Banking Industry
c. Indian Banking System
d. Major Players in India
2. Introduction to Digitalization
a. Meaning and Definition
b. Digital Banking
3. Company Profile
a. History of HDFC Bank
b. Mission, Vision and Objectives
c. Management at HDFC Bank
d. Business Profile
e. Ratings/Awards
f. Products of HDFC Bank
g. Digital Services of HDFC Bank
h. Digital Initiatives
i. Departments at HDFC Bank
g. Swot Analysis of HDFC Bank
Part II
4. Objectives of the study
5. Literature Review
6. Research Methodology
a. Research Design
b. Research Type
c. Sampling Design
d. Sources of Data Collection
e. Data Collection Tools
f. Methods of Data Collection
Part III
7. Data Analysis & Interpretations
8. Findings
9. Conclusion
10. Suggestions
11. Limitations
12. Bibliography
13. Appendix
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the
bank performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."

-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.

-By Findlay Sheras

Thus
A Bank:

Accept deposits of money from public.

Pays interest on money deposited with it.
Lends or invests money.
Repays the amount on demand,

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 Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
was developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

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 INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700s
and 1800s, with many banks created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which extended
throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word ban co,
meaning bench, because moneylenders worked on benches in market places. The bank of
Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver
in their safes in return for a fee. Receipts given to the Merchant were sometimes used to

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buy or sell, with the metal itself staying under lock and key. The goldsmith realized that
they could lend out some of the gold and silver that they had and charge interest, as not
all of the merchants would ask for the gold and silver back at the same time. Eventually,
instead of charging the merchants, the goldsmiths paid them to deposit their gold and
silver.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.

New technology transformed the banking industry in the 1900s round the world, banks
merged into larger and fewer groups and expanded into other country.

HISTORY OF INDIAN BANKING INDUSTRY

Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the countrys first bank, Bank of
Bengal, was established. But the industry changed rapidly and drastically, after the
nationalization of banks in 1969.

Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly
expanded their foot prints after nationalisation of banks in India in 1969 and further in
1980. Although there is a restrictive entry/expansion for private and foreign banks in
India, these banks have increased their presence and business over last 5 years.

Peculiar characteristic of Indian banks unlike their western counterparts such as high
share of household savings in deposits (57.4% of total deposits), adequate capitalization,
stricter regulations and lower leverage makes them less prone to financial crisis, as was
seen in the western world in mid FY09.

The Scheduled Commercial Banks (SCBs) in India have shown an impressive growth
from FY04 to the mid of FY09. Total deposits, advances and net profit grew at CAGR of
19.6%, 27.4% and 20.2% respectively from FY03 to FY08. Banking sector recorded

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credit growth of 33.3% in FY05 which was highest in last 2 and half decades and credit
growth in excess of 30% for three consecutive years from FY04 to FY07, which is best in
the banking industry so far. Increase in economic activity and robust primary and
secondary markets during this period have helped the banks to garner larger increase in
their fee based incomes.

A significant improvement in recovering the NPAs, lowest ever increase in new NPAs
combined with a sharp increase in gross advances for SCBs translated into the best asset
quality ratio for banking sector in last two decades. Gross NPAs to gross advances ratio
for SCBs decreased from the high of 14% in FY2000 to 2.3% in FY08.

With in the group of banks, foreign and private sector banks grew at higher rate than the
industry from FY03 to FY08 primarily because of lower base effect and rapid expansion
undertaken by these banks. In FY09, overall growth in credit and deposits was led by
PSBs. However, growth of private and foreign banks was significantly lower in FY09 due
to their high exposure to stressed sectors and problems at parent level for foreign banks.

Unsecured bank credit has risen over the years and stood at 23.3% of bank credit in FY08
as compared to just 10.9% in FY2000. Lending to sensitive sector has also grown at
CAGR of 46.1% from FY05 to FY08. In the backdrop of the economic downturn, we feel
that the excellent performance seen in last five years ended FY08 will be difficult to
repeat in coming years.

We expect that with the downturn in the economy, credit and deposit growth will
moderate in coming years. Credit growth will be led by spending on the infrastructure
while retail credit will show a moderate growth. Margin pressures due to lag effect of rate
cuts between interest rate on deposits and advances, lower treasury gains and core fee
income and increasing in provisions for NPAs is likely to put pressure in the bottom line
of the banks.

Going forward, PSBs which are close to the required lower level of government stake
and have concentrated presence in particular region are likely to consider its merger with
other PSB as an important option if they want to sustain the growth seen in past.

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FUNCTIONS OF BANKS

Primary Functions

Acceptance of Deposits
Making loans & advances
Loans
Overdraft
Cash Credit
Discounting of bills of exchange

Secondary Functions

Agency functions
Collection of cheques & Bills etc.
Collection of interest and dividends.
Making payment on behalf of customers
Purchase & sale of securities
Facility of transfer of funds
To act as trustee & executor.

Utility Functions

Safe custody of customers valuable articles & securities.

Underwriting facility
Issuing of traveller's cheque letter of credit.
Facility of foreign exchanges
Providing trade information
Provide information regarding credit worthiness of their customer.

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STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking
units contributing to almost 50% of deposits and 60% of advances. The Reserve
Bank of India is the foremost monitoring g body in the Indian Financial sector. It is a
centralized body that monitors discrepancies and shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI)
the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks
in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub
sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks
Industry estimates indicate that out of 274 commercial banks operating in the
country, 223 banks are in the public sector and 51 are in the private sector. These
private sector banks include 24 foreign banks that have begun their operations here. The

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 specialized banking institutions that include cooperatives, rural banks, etc. form a part of
the nationalized banks category.

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
Commercial Banks
State co-op Commercial Banks and
Banks Banks Primary Cr.
Societies

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI, etc

8
State Bank of Other Nationalized Regional
India and its Banks Rural Banks
Subsidiaries

CLASSIFICATION ON THE BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

PUBLIC SECTOR BANKS

Public sector banks are those banks which are owned by the Government. The Govt. runs
these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were
also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present
there are 9 banks are nationalized. All these banks are belonging to public sector
category. Welfare is their principle objective.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country

such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in

preparation to the share of the banks held by him.

CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term &

medium term loans to their members. Co-operative banks are in every state in India.

Its branches at district level are known as the central co-operative bank. The central

Co-operative bank in turn has its branches both in the urban & rural areas. Every state

9
Co-operative bank is an apex bank which provides credit facilities to the central co

operative bank. It mobilized financial resources from richer section of urban

population by accepting deposit and creating the credit like commercial bank and

borrowing from the money mkt. It also gets funds from RBI.

ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act.
1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These banks

10
are not in a position to grant long-term loans to industries because their deposits are only
for a short period. The majority of joint stock banks in India are commercial banks which
finance trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
Japan. These banks are established in HAMBURG City of Germany in 1765. In India a
department of post offices functions as a saving banks.

FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in
their own currency. Thus these banks convert home currency into foreign currency and
vice versa. It is on this account that these banks have to keep with themselves stock of the
currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business

INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Some times, they even underwrite the
debentures & shares of big industrial concerns.

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

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CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty
& responsibility of carrying out the monetary policy formulated by the government.
India's central bank known as the reserve bank of India was set up in 1935.

AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.

OPPORTUNITIES

The Banking sector is considered the most lucrative option in todays job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by
careers in Private Banking, Investment Banking and Retail Banking. One could work in a
variety of areas in banking industry including Recurring Deposit account, banking
officer, probationary officer, loan officer, assessor, personal loan officer, home loan
officer, home loan agent, loan manager, mortgage loan underwriter, loan processing

12
officer, accountant, product marketing and sales executive, and customer service
executive among others.

In the Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions
for some commission. While some brokers like to practice with individual clients others
work for institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities analysts.
Security analysts are those who advise companies on floatations of shares as they are
expected to have sound knowledge of capital markets.

Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability
projections, compare financial results, survey the industry as a whole and on the basis of
the available information, and finally conclude to a decision. Equity Analysts do jobs
similar to investment analysts and research the equity markets and make predictions.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

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 INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.

Integration of digital technologies into everyday life by the digitization of everything that
can be digitized.

Digital is the new buzz word in the banking sector, with banks all around the
globe hopping onto the digital bandwagon. Just like how the introduction of
mobile technology massively disrupted innovation in the banking sector, digital
is now doing the same. Banks of all sizes are making sizeable investments in
digital initiatives in order to maintain a competitive edge. So, what does digital
actually mean?

It definitely provides a glimpse into the future of banking. What digital essentially does is
that it uses technology to design experiences, both seen and unseen. Digital is all about
making what can be seen unseen making services so smooth and seamless that it
becomes invisible to the customer. Despite all the automation and improvements that

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digital banking has the potential to achieve, customers and their needs still form the very
core of the banking sector.

It is the simplicity of design, the removal of friction and the ability to improve the
customer experience.

DIGITAL BANKING

MEANING AND DEFINITION

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...

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 ...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.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,
ii. fewer (or ideally no) errors,
iii. smaller branch footprint (the typical branch can become a kiosk affair,
providing technology interfaces for the client to use plus the ability to deal with
banking specialists via a video link) a minimum number of actual staff will be
required.
iv. concentrating banking/business specialists in a single centre, who are then
available to clients via a technology link (either on their mobile, pc or via a
kiosk branch).

Operating cost savings of between 20% to 40% could be achieved this way, according to
industry experts. Cutting costs has the opposite effect on profits they go up.

2. Dumping legacy systems;

i. Make no mistake - one of the biggest drawbacks to going Digital is this
irrational clinging to legacy systems (developed in the 1960s and 1970s) that
hold progress back. Banks plead the huge cost of making the change. They are
wrong. The ultimate costs of not making the change are far greater.

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Benefits to the customer:

1. Improved services and product offerings;

i. 24/7 bank services and availability through your mobile, pc or kiosk branch,
ii. smart banking applications that allow ALL transactions to be completed from
the device of your choice, from beginning to end (with clear instructions and
fail safe mechanisms),
iii. access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),
iv. new useful client services such as warnings, notifications, budgeting,
expenditure analyses, savings programs, calculators (you name it the range is
endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the clients needs (not the banks)
vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products
3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Digital banking is set to overtake branch networks as the preferred access channel for
how customers will interact with their bank by 2015.

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 Online and mobile are preferred channels, particularly for Generation Y customers

Immersed in digital

Digital communication is pervasive; from mobile phones to tablet computers, we are

immersed in digital. Recent development of new digital features has led to:

Improvements in user-experience design through interactive, game-like interfaces

that are starting to merge the boundaries between the real and the virtual and bringing data to
life through rich visualisations.
Advances in mobile devices and networks, providing new services such as
enhanced digital security and the ability to access the Internet from anywhere (partially
limited by high international roaming charges).
The rise of social media and collaboration tools, empowering customers and
employees, and moving control of the brand message from businesses to consumers.
Innovation in digital analytics and predictive models, driving deeper insight into
customers behaviour and enabling highly targeted and relevant treatment strategies to be
executed through digital media.

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 New channel integration technologies, enabling a more seamless end-to-end
experience for customers with their bank.

Generation Y is fully embracing digital communication and is the customer group with
whom banks need to establish customer primacy relationships. The advantage of being
the primary bank is increased share of wallet and higher revenue over time, based on a
strong sense of customer loyalty and good customer service.

PwC research shows that Generation Y are more than 20% more likely to use, or consider
using online or mobile banking services, than Baby Boomers and nearby twice as likely
as matures. According to this research, their primary bank is consistently more likely to
be the bank of choice for customers when they are planning to buy another banking
product.

Consumer expectations are changing with digital interaction

Present day consumers expect high quality digital communication. Rich content including
elegant designs, instant search results and interactive features. Bank websites, especially
online banking sections, are now required to offer a pleasant experience while remaining
highly functional.

It is still common for banks to send out account statements using the postal service;
however, for many people digital banking offers 24/7 account balance control there is a
clear preference, especially for younger customers, to want instantaneous access to their
accounts. The posted account statement is snail mail in comparison. The utility of snail
mail, by contrast, is rapidly dying.

Consumers have access to more information than ever before, they now communicate
with more people and more frequently traditional word-of-mouth has a completely
different meaning when one considers the immediacy of Facebook, Twitter or even email.
Access to information and the ease with which consumers can share views with those
they know or even the world is dramatic. Good experiences can be easily shared
online... as can negative ones.

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It is important that banks understand the importance of customer thinking in deciding
where to trust their money and in choosing their primary banking relationship. This has
long-term influence personally, but also as an element of influence on their friends and
those they communicate with online.

Banks should consider four main aspects of a robust digital offering:

1. Customer attitudes and behaviour are changing

2. Digital is preferred globally.

3. Digital is a part of Generation Ys lifestyle and this is the key time for them to decide
on their primary banking relationship.

4. Digital is evolving technology devices and software all serve to disrupt traditional
means of communication. Simultaneously, each brings opportunity.

Security is the foundation of digital banking

Security extends from the banks hardware to the users device whether a PC/Mac at
home, an iPad or the newest Smartphone. In all cases, digital banking must employ
robust security technologies which protect the communication, user information and the
banks IT infrastructure.

Indeed, it is clear that for digital banking to be a rewarding experience for the customer
and a profitable growth area for the banks, technology partners, payment processing
service providers and mobile phone operators there ought to be a comprehensive
agreement on shared technology standards and processes. The European Commission has
just issued a Green Paper, Towards an integrated European market for card, internet and
mobile payments which addresses many of the issues while being much broader than
online banking itself. Luxembourgs LuxTrust is a strong step here in moving digital
banking forward in terms of a security standard.

Digital in Private Banking

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Private Banks have been slow to introduce digital technology applications for their
customers arguing that the private banking industry is a personal and pre-dominantly face
to face business with little need for such applications to enhance the relationship. Security
and privacy issues are two of the reasons cited for not embracing these new
developments.

However, there are a number of arguments for private banks to seriously evaluate their
digital strategy and make it one of the cornerstones of their service offering and brand
building activities. As the next generation of private banking clients start to dominate,
private banks will need to avoid the image of an old out-of-date bank that has lost touch
with its clients.

Private banking is about being a trusted advisor as well as being connected and
recommended. Since the digital revolution, which started in the 1990s, people are
increasingly turning to the Internet not only to inform themselves regarding financial
products but also the reviews of other customers using the products and services.
Customers are already using social media to share their views on financial products and
services.

There is some recognition here in Luxembourg of the increasing place digital

communication is taking, as noted in The PwC Global Private Banking / Wealth
Management Survey 2011 which found that 38 percent of private bankers expected to
interact more with their clients through social media in the next two years and that 56
percent of private banks expected to use mobile technologies over the same period.

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 COMPANY PROFILE

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to
receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBIS liberalization of the Indian Banking Industry.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become a world class Indian bank, benchmarking
themselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and compliance. The
objective is to build sound customer franchises across distinct business so as to be a
preferred provider of banking services for target retail and wholesale customer segments
and to achieve a healthy growth in profitability, consistence with the Banks risk appetite.
The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Banks business
philosophy is based on five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.

HDFC Banks business objectives emphasize the following:

Increase their market share in Indias expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.

22
 Maintain their current high standards for asset quality through disciplined credit
risk management.
Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
Continue to develop product and services that reduce our cost of funds.
Focus on high earning growth with low volatility.

Bank logo

Type Private company

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Aditya Puri (MD)[1]

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking
Private Equity

23
 Finance and Insurance
Consumer Banking
Mortgages
Credit Cards[2]

Revenue 74,373.22 crore(US$11 billion)

[3]
(2016)

Profit 12,817.33 crore(US$1.9 billion)

(2016)[4]

Total assets 687,892 crore(US$100 billion)

(2015)[4]

Total equity 505.64 crore(US$75 million) [5]

Number of 76,286 (March 2015)[6]

employees

Website HDFCBank.com

Registered Office

HDFC Bank House,

Senapati Bapat Marg, Lower Parel,

Mumbai, Maharashtra 400013

Management at HDFC
S.No Name Designation

24
 1 Shyamala Gopinath Chair Person

2 Paresh Sukthankar Deputy Managing Director

3 A N Roy Director

4 Keki Mistry Director

5 Renu Karnad Director

6 Umesh Chandra Sarangi Additional Director

7 Mr. Aditya Puri Managing Director

8 Kaizad Bharucha Executive Director

9 Bobby Parikh Director

10 Partho Datta Director

11 Malay Patel Director

Other Detail:

Business Group HDFC Group

Listings BSE , NSE , NYSE

ISIN No. INE040A01018

Incorporation 31/12/1994

Public Issue Date 31/12/1995

Promoters

HDFC is Indias 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

25
related credit facilities. With its experience in the financial markets, strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.

Capital Structure

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The
paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 )
equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and
about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the
bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the
Bank has 4,41,457 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on
the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002

Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against Rs.629,322
crores as of June 30, 2015. The Banks total income for the quarter ended June 30, 2016
was Rs.19,322.6 crores, as against Rs.16,503.0 crores for the quarter ended June 30,
2015. Net revenues (net interest income plus other income) increased by 19.6% to
Rs.10,588.1 crores for the quarter ended June 30, 2016 as against Rs.8,850.7 crores in the
corresponding quarter of the previous year.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Banks distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-
time basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The

26
Banks expansion plans take into account the need to have a presence in all major
industrial and commercial centres, 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
centres where the NSE / BSE have a strong and active member base.

As of June 30, 2016, the Bank also has a network of 4,541 branches and 12,013 ATMs
across India. 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.

Management

Mrs. Shyamala Gopinath holds a Masters 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

27
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the banks 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. In terms of
core banking software, the Corporate Banking business is supported by Flexcube, while
the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are
open, scaleable and web-enabled.

The Bank has prioritised 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.

Business Profile

HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the retail
side. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which

28
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.

29
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By March 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the merchant acquiring business with over 235,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank
is well positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

Ratings/Awards

Credit Rating

HDFC Bank has its deposit programmes 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

30
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)"
rating to the bank's deposit programme, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4
billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the
rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating
agency for those instruments.

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 was assigned a 'CRISIL
GVC Level 1' rating in January 2007 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.

Awards and Achievements

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realized that only a single-minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our
way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.

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2016

IDRBT Banking Technology Excellence Best Bank in Banking Technology

Awards 2016 Excellence for the year 2015-16

Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial

Awards Industry & Digital Banking

Dun & Bradstreet Corporate Awards HDFC Bank wins Dun & Bradstreet
2016 Corporate Award 2016 in the Banking
sector

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

Banks Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1

Outlook Money Awards 2015 - Best Bank of the year : Runner up

- Winner : Institutional Financial
Distributor of the year

Pension Fund Regulatory and - Best Performing Bank - Maximum

Development Authority awards for Atal APY Subscribers
Pension Yojana - Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector
Banks

Business Today KPMG India's Best Banks 2015

Awards

Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30

Global CEOs for 2nd year

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IBA Awards HDFC Bank wins prestigious IBA
Banking Technology Awards

Business Today Best Companies to Work for in India

NABARD Award Best Bank in JLG-Bank Linkage

programme in Assam

Business Today - KPMG India's Best HDFC Bank wins Bank of the year and
Bank Best Digital Banking Initiative awards

NABARD Award - The Best Bank in HDFC Bank wins NABARD Award
SHG Credit Linkage in Tamil Nadu

2015

AIMA Managing India Awards 2015 - Business Leader of the Year - Aditya
Puri

Barron's - World's 30 Best CEOs - Mr Aditya

Puri

Finance Asia poll on Asia's Best - Best Managed Public Company -

Companies 2015 India'
Best CEO- Aditya Puri
Best Corporate Governance- Rank 3
Best Investor Relations- Rank 3

J. P Morgan Quality Recognition - Best in class straight Through

Award Processing Rates

33
2014

Euro money - HDFC Bank wins Best Private Banking Services for
Super affluent clients for 5 years in a row at Euro money
Awards

Euro money Private - Best Private Banking Services award for Net-worth-
Banking and specific services category for Super affluent clients (US$
Wealth 1 million to US$ 5 million).
Management - Best Private Banking Services award Asset
Survey 2015 Management

FE Best Bank - Best Bank in the New Private sector

Awards - Winner - Profitability
- Winner - Efficiency

Business Today - - Best Large Bank - Overall

KPMG Study 2014 - Best Large Bank - Growth

Business world- - Best Large Bank

PwC India Best - Fastest Growing Large Bank
Banks Survey 2014

Asia money FX - Best Domestic Provider of FX options

Poll 2014 - Best Domestic Provider of FX products & Services
- Best Domestic Provider of FX research & market
coverage
- Best Domestic provider for FX Services

The Asian Banker Strongest Bank in India in the Asian Banker 500 (AB
500) Strongest Bank by Balance Sheet Ranking 2014

34
Dun & Bradstreet - - Best Bank - Managing IT Risk (Large Banks)
Polaris Financial - Best Bank - Mobile Banking (Large Banks)
Technology - Best Bank - Best IT Team (Private Sector Banks)
Banking Awards
2014

Forbes Asia Fab 50 Companies List for the 8th year

Brands TM Top 50 India's Most Valuable Brand

Most Valuable
Indian Brands
study by Millward
Brown

Finance Asia - Best Bank - India

Country Awards - Best CEO- Rank 1
2014 and poll on - Best CSR - Rank 1
India's Top - Best CFO - Rank 2
Companies

Asia money Best of Best Domestic Banks - India

Dun & Bradstreet - Best Corporate in Banking Sector

Manappuram
Finance Limited
Corporate Award
2014

35
 Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The product of HDFC bank are

Savings Account

Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with
variety of features. The interest rates on the Savings Account are 4% p.a. which is
calculated daily on the end of day balance. The following accounts and their respective
interest rates are mentioned underneath:

Savings Max Account

Regular Savings Account

36
 Women Savings Account
Kids Advantage Account
Senior Citizens Account
Family Savings Group Account
Basic Savings Bank Deposit Account
Institutional Savings Account
BSBDA Small Account

Salary Accounts

The bank offers multiple types of salary accounts to suit the needs of all types of
corporate. The salary accounts offer various features to the accountholders like free
insurance coverage. The different types of Salary Accounts are:

Premium Salary Account

Regular Salary Account
Defence Salary Account
Salary Family Account
Classic Salary Account
Reimbursement Account
Basic Savings Bank Deposit Accounts Salary

Current Accounts

Current accounts are required by businessmen and professionals who have regular
transactions through the bank. The account deals mainly in liquid deposits and allows
unlimited number of transactions every day like funds being withdrawn or cheques being

37
written against the account without worrying about the balance in the account.
Professionals, traders, SME businessmen, agricultural businesses can avail various
benefits like fund transfers between all HDFC Accounts, free local collections through
cheque and fund transfers as well as easy inter-city banking. Moreover, the bank also
offers a range of Current Accounts to suit individual preferences like:

ULTIMA Current Account

Supreme Current Account
Apex Current Account
EZEE Current Account
Max Current Account
Agri Current Account
Plus Current Account
Current Account for Hospitals and Nursing Homes
Trade Current Account
Current Account for professionals
Premium Current Account
Merchant Advantage Plus Current Account
Regular Current Account
Merchant Advantage Current Account
Flexi Current Account
Institutional Current Account

Deposits

Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest

38
rates. HDFC Bank also offers various types of deposit accounts promising high interest
rates for customers seeking deposit accounts. Here are the deposit accounts available with
the bank:

Regular Fixed Deposit

Recurring Deposit
5 year Tax Saving Fixed Deposit
Safe Deposit Locker the bank also provides the facility of Safe Deposit lockers
for you to store your valuable deposits. The lockers are available in various sizes at
various locations.
Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural
accounts available:
Basic Savings Bank Deposit Accounts Farmers
Kisan Club Savings Accounts

Loans

HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans
are available with the bank:

Personal Loan Business Loan

Home Loan Car Loans

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 Two-Wheeler Loans Gold Loan

Loan against Assets Educational Loan

Government Sponsored Programs Rural Loans

Credit Cards

The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank are as follows:

Super Premium Cards- There are 3 variants under the Super Premium Variety which
are:

Infinia
Regalia
Diners Club Black

Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and
Times Group which offer special discounts on airline travel through Jet Airways and
offers on dining and movie tickets. The range of co-brand cards includes:

Jet Privilege HDFC Bank World

40
 Jet Privilege HDFC Bank Platinum
Platinum Times Card
Titanium Times Card

Professional Credit Cards- Credit cards issued specifically to professionals like Doctors
and Teachers with best lounge programs and freedom to fill fuels across any fuel s
respectively. The cards come in two variants:
Doctors Superia
Teachers Platinum

Premium Travel Cards- These cards are specially designed to offer travel related
benefits and discounts. The cards offer reward points which can be redeemed against air
tickets or against dining and also lounge access of airports. The range includes:

Superia
AllMiles

Cash back cards- The specialty of these cards is that the card promises cash back on
everyday spends in the form of Reward Points which can be redeemed to get cash back
and also zero fuel surcharge. The range of cash back cards include:

Platinum Edge
Titanium Edge
Money Back

Premium Cards- Credit cards which offer premium range of offers and discounts on dining,
entertainment and complimentary access to airport lounges. The premium rage of credit cards
include the following types of cards:
World MasterCard

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 Diners Club Premium
Diners Club Rewardz
Visa Signature

Solitaire- A premium card especially for women customers with exclusive offers and
rewards for females.

Platinum Plus Card- It is a regular credit card designed for regular usage offering
Reward Points on everyday spends and also fuel surcharge waiver.

Commercial Cards- Arange of credit cards especially designed for business usage
offering fuel surcharge waiver, lounge access to airports, travel and entertainment
benefits and also air tickets discounts. The range of business cards include:

Business Platinum
Business Gold Credit Card
Corporate Platinum
Corporate World MasterCard
Corporate VISA Signature
Corporate Card
Purchase Card
Distributor Card

Debit Cards

HDFC Bank offers Debit cards with every Savings Account to customers which are safer
than carrying cash because they require a PIN every time they are used, they provide

42
great discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used
across almost all outlets for payment. The range of debit cards issued by the bank are:

EasyShop Platinum Debit Card

Jet Privilege HDFC Bank World Debit Card
Easy Shop Titanium Royale Debit Card
EasyShop Titanium Debit Card
EasyShop Debit Card
EasyShop Business Debit Card
EasyShop Womens Advantage Debit Card
EasyShop NRO Debit Card
EasyShop Imperia Platinum Chip Debit Card
EasyShop Gold Debit Card
RuPay Premium Debit Card

Demat Account

HDFC Bank issues Demat Account for investors like traders, long term investors as well
as beginners for a flexible and customized solution. The demat account offered by the
bank is safe and dependable for buying and storing a customers equity investments,
mutual funds, IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and NCDs.
The account can also be opened online and the types of demat accounts offered are as
follows:

Demat Account
2 in 1 Account
3 in 1 account

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Investments

HDFC bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance products and General Insurance Products.
The investment products are further subdivided into the following categories:

Mutual Funds
Equities & Derivatives through HDFC Securities Trading Account
IPO Application through ASBA (Application Supported by Blocked Amount)
Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat pure
gold bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and tamper
proof packing
Investment in Silver through Mudra Silver Bars which are available in 50g and
100g with Assay Certification and tamper-proof certified packaging.
8% Savings Bond which are risk-free and can be bought with a minimum
investment of Rs.1000
Sec 54 EC Capital Gains Bond with a maximum investment of 50 lakhs and
tax exemption on capital gains
Inflation Indexed National Savings Securities Cumulative (IINSS C) with a
minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance

HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and the
non-life insurance products are issued in association with HDFC Ergo. The following are
the heads of insurance and their respective plans:

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Life Insurance

The list of below mentioned plans range from term insurance, endowment insurance and
money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete
insurance products basket for customers to choose from. The plans available are:

HDFC Life Click2Protect Plus Plan - an online term insurance plan with varied
options corresponding to benefits payable
HDFC Life Health Assure Plan - a health plan
HDFC Life Cancer Care a health plan specifically designed for diagnosis and
treatment of cancer
HDFC Life Pension Super Plus a pension plan which guarantees income after
retirement
HDFC SL ProGrowth Super II a Unit Linked Plan giving the dual benefit of
insurance and market linked growth for wealth appreciation
HDFC SL YoungStar Super Premium a Unit Linked Child Plan taking care of
your childs future while at the same time giving increased benefits in the form of
market linked returns.
HDFC Life ProGrowth Plus - a unit linked insurance plan
HDFC Life Classic Assure Plus a limited premium life insurance plan with
higher protection option
HDFC Life Super Savings Plan a participating Endowment Assurance plan
with built-in Accidental Death Cover for a comprehensive coverage
HDFC Life Personal Pension Plus a pension plan with lifelong pension option
and guaranteed benefit at maturity
HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to
choose Accidental Death Coverage
HDFC Life Guaranteed Pension Plan a limited term premium paying annuity
plan with guaranteed lifetime pension payments

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 HDFC Life New Immediate Annuity Plan an immediate annuity plan wherein
the pension payouts start immediately after payment of the Purchase Price
HDFC Life Smart Woman Plan an award winning insurance cum investment
plan designed for women for covering their life as well as maternity expenses,
congenital or malignant female-specific cancers
HDFC Life Invest Wise Plan a single premium ULIP plan for wealth
maximization without having to pay regular premiums
HDFC Life Single Premium Pension Super Plan a single pay pension plan
with market linked returns and an assured benefit of 101% of premiums paid on
vesting or maturity
HDFC SL Crest a simple insurance plan which can be taken by filling up a
Short Medical Questionnaire
HDFC Life Super Income Plan a participating guaranteed benefits plan which
pays regular incomes in the payout period of 8-15 years
HDFC Life Sanchay a traditional life insurance plan with a limited premium
paying term
HDFC Life YoungStar Udaan a child insurance plan which can be either
availed as an Endowment Plan with lump sum benefit at maturity or money back
plan with benefits paid out in instalments during the last 5 policy years
HDFC SL ProGrowth Maximiser a single pay unit linked plan with no limit
on the maximum premium investment
HDFC Life Click2Invest ULIP a unit linked plan available online
HDFC Life Sampoorna Samridhi Plus Plan a limited payment endowment
assurance plan wherein the cover can be extended for up to 100 years
HDFC Life Sampoorna Nivesh a traditional insurance plan with single, regular
or limited premium paying options

Health Insurance

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Health Insurance falls under the purview of general insurance and four types of health
insurance plans are offered by the bank which are as follows:

Health Suraksha a health plan covering hospitalization, pre and post

hospitalization expenses, day care procedures, domiciliary treatment and organ
donor expenses. The coverage can be taken for an individual and also his family
with treatments in a network of 4800+ hospitals.
Critical Illness Silver Plan a health plan specifically designed for treatment of
critical illnesses covering 8 critical illnesses in its scope of coverage
Critical Illness Platinum Plan a critical illness plan which covers 15 critical
illnesses and provides the benefit upon diagnosis of the covered illness
Individual Personal Accident Plan II a personal accident plan which can be
taken for self and family and covers hospital expenses, injuries, disability due to
accident with a coverage range of 2.5 lakhs to 15 lakhs
Motor Insurance motor insurance is offered to customers in partnership with
HDFC Ergo and there are two types of motor insurance plans available:
Commercial Vehicle Insurance it provides comprehensive coverage for
your commercial vehicle across 1600+ network garages in India
Private Car Insurance insurance coverage for your private car with cashless
claims across 1600+ network garages. Moreover, the plan also offers discounts
based on age and occupation
Two Wheeler Insurance an insurance plan for your two-wheeler with a
provision of cashless claim across 1600+ network garages throughout the country.
Travel Insurance an insurance plan for domestic and international travel be it
for business or leisure purposes. The plan covers emergency medical expenses,
emergency medical evacuation, repatriation of remains, emergency dental
expenses, hospital cash, accidental death and permanent total disability while
flying in a common carrier, personal accident, flight delay, loss of baggage and
personal documents, delay of checked-in baggage, personal liability, financial
emergency assistance, contingency travel benefits and hijack distress allowance.

47
 Home Insurance an insurance policy issued to protect the home as well as its
contents. The plan covers risk against fire, lightning, explosion, flood, inundation,
storm, riot, strike, earthquake, terrorism, burglary and theft with coverage for 1-5
years.

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 ones 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:

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Net Banking: Net Banking is HDFC Banks Internet Banking service. Providing up-to-
the-second account information, Net Banking manages customers account from the
comfort of costumers 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 customers
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 customers
account. Net Banking is Real Time, giving them up-to-the-second details on customers
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.

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HDFC Banks 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 banks 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.

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 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 banks 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?

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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.

52
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

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 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.

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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 dont 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 wont 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 cashiers 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.

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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.

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 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 consumers interaction with the bank to a whole new level.

30-Minute Auto Loan, 15-minute Two-Wheeler Loan.

10-second personal loan disbursement.

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HDFC Banks 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.

58
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.

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 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

60
 (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 customers 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.

61
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 Banks 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.

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 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.

63
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 Indias 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

64
According to industry estimates, by 2020, 30% of all digital payments will be done using
a digital wallet. HDFC Banks 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.

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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 Banks 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 Banks Watch Banking does not require our customers to download a separate
App. Customers can activate Watch Banking from an upgraded version of HDFC Banks
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.

66
 Any user information or data flow that happens, it if from the mobile phone to the
banks 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

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 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

68
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 Banks 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, theres 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.

69
Today, 55% of all transactions at HDFC Bank are conducted through digital channels.

DEPARTMENTS AT HDFC BANK

Marketing Department
70
Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been
pushing result-oriented local and digital marketing since he joined India's second-largest
private bank last year.
HDFC Bank uses technology-led marketing to keep costs low. He launched some 4,000
campaigns and 400 analytical solutions (a 40% y-o-y increase) in the past year to bring in
more customers to the bank and aggressively stepped up its digital presence to increase
business from this channel by over 60%.

Jain, a keen trekker who has run three half marathons (and wishes he had time for more),
is pushing his colleagues to shift away from a centralised marketing function, and think
local by setting up local marketing teams to cater to specific needs of a community or
locality. "I want our marketers to focus on the catchment areas around branches and run
campaigns to suit residents or businesses there," he says.

His result-oriented approach is something his rivals and industry watchers admire. "He's
an objective-driven marketer who has been able to effectively leverage technology and
digital programmes," says Sanjay Jain, chief marketing officer of Reliance Capital.
HDFC's Jain stands out for his focus on return on investment and not spread across many
hard-to-measure campaigns, he says.

Ajay Kelkar, COO of customer relationship solutions firm Hansa Cequity, says Kartik
Jain uses technology and digital media more effectively than most of his peers. "This

71
gives the bank an opportunity to get one view of the customer and, in a muted economy,
opens up better opportunities to cross sell products," he says.

As marketers become more concerned with cost, the idea of highly visible above-the-line
advertising rarely appeals to Jain. "We haven't done a big-ticket campaign in 2-3 years,"
he says. Instead, the ads will be targeted, like its Infineon credit card ads pegged at big
spenders.

While he wouldn't disclose his marketing budget, Jain says HDFC Bank spends less than
one-fifth of it on above-the-line activities, with the rest reserved for below-the-line
campaigns. "Marketing is about customer engagement that leads to measurable business
results," he says.
While it's a challenge to get close enough to customers to garner key insights for new
campaigns, marketers like Jain are increasingly under pressure to reduce spends in a
slowing economy.

Jain is leaning heavily on digital campaigns to proselytise HDFC Bank. Under him, the
bank's website has become the most visited private bank website and the most responsive
bank on Facebook, according to a survey by Social Bakers in May 2012.
"With increasing penetration of internet and mobile, digital marketing has become an
inexorable element of marketing...this is especially true in the case of financial services,
where products and services cannot be distributed efficiently without the use of
technology," Jain says. Parag Rao, who heads HDFC Bank's credit card business, says
while Jain's overview across the bank's businesses has allowed him to synergise
marketing campaigns, his data analytics team is a welcome bonus.

Finance Department

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Finance department is broadly concerned with the acquisition of funds by a business firm.
How large should be the firm and how fast should it grow?
What should be the mix of firms assets?
What should be the mix of the firms financing?
How should the firm analysis, plan, and control its financial affairs.
Finance is the lifeblood of the organization. Finance management as an integral
part of the overall management is not a totally independent area. It draws heavily on
related subjects and fields of study namely economics, accounting, marketing,
production, and quantitative methods. Following are the main features of financial
management.
The focus of financial management was mainly on certain episodic event like
formation, issuance of capital, major expansion, merger, re-organization, and
liquidation in the life cycle of the firm.
Approach was mainly descriptive and institutional. The instrument of financing,
the institution and procedures used in capital market, and the legal aspect of
financial events formed the core of financial management.
The outsiders point of viewed mainly from the point of investment bankers,
leaders and other outside interests.

According to HDFC BANK Ltd.s AGM on JUNE 1, 2009: -

Issued 50 crore Redeemable Subordinated Bonds to increase Capital Adequacy
Ratio, which had come down to 11.09% from 12.19%.
HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on
date of AGM total outlets increased to 134. Bank has plans to increase this
number to 160 by year-end. Ten new outlets are planned for Maharashtra.
Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in
March 2001. These advances were made to corporates with "AAA" rating for
short tenure and Bank has recovered these amounts in the current year.
Money at call and short notice with banks went up from Rs 487 crore in March to
Rs 1,357 crore in March 2001. Bank found this opportunity giving good returns
and funds were parked with overseas accounts.
All HDFC Bank branches and head office undergo Concurrent Audit.
HDFC Bank is the largest issuer of debit cards in the country.

73
 HDFCs reported a 80% increase in top line in FY 2001 and 75% increase in
bottom line. The reason for less than proportionate growth in Net Profit is due to
investments made for future growth. Bank sees these years as consolidation
period.
HDFC Bank serves 5 lakh accounts in Demat Services segment. Total number of
employees for Depository services is 142 and this segment contributed Rs 7 crore
to Net Profit.
Out of the stipulated norm of 40% advances to priority sector by RBI, HDFC
Bank has made 15% advances to Agriculture sector. These include loans to
farmers and investments in NABARD and Rural Electrification.

Human Resource Department

Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the peoples
dimension in organizations.

74
Work force of an Organization is one of the most important inputs of components. It is
said that people are our single most important assets. Because of the unique importance
of HUMAN RESOURCE and its complexity due to ever changing psychology, behaviour
and attitudes of men and women at work, in all business concerns, there is one common
element. I.e. Human personnel function, i.e., manpower management function is
becoming increasingly specialized. The personnel function or system can be broadly
defined as the management of people at work- management of managers and
management of workers. Personnel function is particularly interested in personnel
relationship and interaction of employees-human relations.

Mandeep Maitra is the Country Head HR at HDFC Bank.

She has done her B.A. Psychology from lady Shriram Colege, Delhi and MBA HR from
Tata Institute of Social Sutdies. The HR department at HDFC bank has 54 people,
including the trainers. The HR department is present in Mumbai, Chennai, Delhi,
Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow. All
people here in HR are MBAs, except for those handling HR operations

Responsibilities of Human Resource Department.

HRD maintain daily attendance record through branch manager via E-mail.
Take decisions for approval regarding leave notes.
He takes the decision related to the recruitment, selection and training of the
candidates. He talks to the consultant related to the recruitment of the qualified
candidates. He also does screening of the candidates, shortlist the candidate and takes
the first round of the interview.

75
 He maintains the database of the candidates to come for an interview. He also
maintains personal file of each employee. He also completes the joining formalities of
each new employee.
They are taking surprising visit in every branch and collect information about
employees.
He is responsible for the monthly salary of the employees as per their attendants and
passing to the Branch Manager.

Human Resource planning

"Human resource planning is the process of forecasting a firm's future demand

for and supply of the right type of people in the fight number".
The planning process:
HRP essentially involve forecasting personnel needs, assessing personnel supply and
matching demand supply actors through personnel related programmes. The planning
process is influenced by overall organizational objectives and the environment of
business.
Importance of HRP
1. Future Personnel Need
2. Coping with Change
3. Creating Highly Talented Personnel
4. protection of Weaker Section
5. To adopt International Strategies
6. Foundation for Personnel Functions
7. Increasing Investment in Human Resource
8. Resistance to Change and Move
Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available
whenever they are needed. Every organization needs employee time by time because of
76
promotion or retirement of an employee. For this purpose an organization need to search
for the right candidate. And so it needs to encourage this type of right candidates
whenever they require.

Sources of Recruitment

Personal data of candidates and data bank maintain by the HR.

department

Campus Recruitment.
Companys own website.
Placement consultants.
Advertisement in the news papers like Times of India, Gujarat
Samachar.

Employee reference.

Recruitment Process

Applica Profil Shortli Screeni Intervie

nt pool e st ng w
Check

E-Recruiting
Perhaps no method has ever had as revolutionary an effect on recruitment practices as
the internet. There are respective company websites devoted in some manner to job
posing activities. Currently, employers can electronically screen candidate's soft
attributes, direct potential hires to a special website for online skill assessment. Conduct

77
background checks over the internet, interview candidates via videoconferencing. And
manage the entire process with web-based software. Companies benefit immensely
through cost savings. Speed enhancement and worldwide candidate reach which the
internet offers. From the job seekers perspective the internet allows for searches over a
broader array of geographic and company posting than was possible before. Problems
notwithstanding, both job givers as well as job seekers find internet as the most effective
source of recruiting and its usage in the days to come will be all pervasive

Selection

Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define as
the process of differentiating between applicants in order to identify and hire those
with a greater likelihood of success in a job.
Selection is based on probation base, they are taking experienced person for 6
months probation and for fresher the probation period is 1 year.
While the selection of the senior level post, is taken by head office at Mumbai.

Selection Process :
Telephonic - interview
Selection Test
Final Interview
Reference & Background
Analysis
Selection Decision
Employment Agreement
Offer Letter
Medical Clarification

RECRUITMENT & SELECTION

HDFC bank's campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI,
SCMHRD, etc and not only IIM'S. They go to 70 business schools, covering far away
places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institute
understand the psychology of the up country customers and are ambitious about working

78
for private sector banks. They hire B.Com, M.Com, engineers and other graduates, as
well as MBA's. Today the requirement is not just globalization, but localization. To
achieve this they hire people from various towns and cities. They are even hiring
managers from rural background. Thehas a need to locate people in 500 + branches
across 300 cities. I come to know in my observation that bank often don't recruit from
IIMs. When I asked about this , then the senior manager says that the bank is able to
attract IIM graduates after they have worked for 3 to 5 years of work experience and they
have experienced the real world and are likely to be less
disillusioned. They take screening very seriously, though they don't use detectives. They
do speak to current employers and ask question about performance and integrity. After
the completion of recruitment process, HDFC bank starts it selection process according to
its schedule to the selection of deserved candidates.

Training and Development

Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic
world of business training is more important there is an ever present need for training
men. So that new and changed techniques may be adopted. A new and changed
technique may be taken as an advantages and improvement affected in the old
methods.
Training is learning experience that seeks relatively permanent change in an
individual that will improve his/her ability to perform on the job.
They provide on the job training to their employees in the branch as they select
these employees for selling various products of bank by direct marketing. Whenever
they select new candidates for any post, they use to give them on the job work.
In case of sales persons to distribute their various products, in the beginning the
person has to work under the observation of his senior then the have to go in market
to have their own experience.

79
 The time for training program for the candidate is depends up on the relevant position
of his work area. They also provide training related to customer care and
communication.

Performance Appraisal

An organizations goals can be achieve only when people put in their best efforts.
Performance appraisal may be understood as the assessment of an individuals
performance in a systematic way. It is define as the systematic evaluation of the
individual with respect to his/her performance on the job and his/her potential for
development.
To appraise the performance of the employee they have developed a credit system on
the basis of the given target to the employee. After appraising the performance of the
employee they put the grade of each employee in the following grade criteria.

Employee Remuneration and Incentive Payments

Remuneration is the compensation an employee receives in return for his/her

contribution to the organization. Remuneration occupies an important place in the life
of an employee.
At HDFC, remuneration of an employee comprises wages and salary, incentives.

Wages and Salary

A part from various incentives and benefits, the personnel are compensated only in
terms of wages and salaries. A proper compensation in terms of this is necessary for
motivation employees for their continuous
Improved performance. For all this, it is required that wages and salaries are provided
well by organization.

80
 Wages and salary refers to the establishment and implementation of sound policies
and practices of employees compensation. A wage and salary is the remuneration
paid for the service of labor in production periodically to an employee. The bank is in
service industry so the salary is given on monthly basis. They use to hire certain
salesman on commission base and they are provided their salaries on commission
base. While other permanent staff are being given monthly salaries. As HDFC bank is
reputed bank in market the pay scale are as per the standard.
Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales
officers salary ranges from 15000 to 18000 per month. HDFC bank is also giving
attractive incentives as per the target. The salary of branch manager is around 35000
per month.

Incentive
In HDFC, employees get incentives on the basis of the target given to each employee
and their area of work. They have developed the incentive structure for the employees
on the basis of point system. All the employees get the incentive in the form cash
reward.

BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE

HDFC BANK
Helps the individual in marketing better decisions and effective problem solving
Through training and development, motivational variables of recognition,
achievement, growth, responsibility and advancement are internalized.
Aids in encouraging and achieving self-development and self-confidence
Helps a person handle stress, tension, frustration and conflict
Provides information for improving leadership, knowledge, communication skills and
attitudes
Increase job satisfaction and recognition
Moves a person towards personal goals while improving interactive skills
Satisfies personal needs of the trainer

81
 Provides the trainee an avenue for growth and a say in his own futur
Develops a sense of growth in learning
Helps a person develop speaking and listening skills
Helps eliminate fear in attempting new tasks

Employees benefit

The employees of HDFC automatically become HDFC bank salary account Holders with
special benefit and privileges and receive instant salary credit. The benefit include
international debit card, corporate card with individual liability (CCIL), access to phone
banking and internet banking, demat accounts, and host of other services to complement
their savings account. Here are some of the features of HDFC Banks salary account.

BEST PRACTICES
The most important thing in HR is to hold the confidence of people. Talent retention is a
challenge today. Another challenge is managing expectations of youngsters, who are
looking for fast tracking their career and want exposure quickly, they may not be lured by
money alone, but the profile that they work for. Bank gives ample opportunity to those
who seek job rotation, If they have a new opening, they advertise it internally. Banks
philosophy is that it is better to lose a person to another department than to another bank.
Their Performance management system is their 'signature' system. They have one of the
lowest rates of attrition.
Middle management onwards their salaries here are good. Women have been rising up the
ranks in the bank. At the junior level, over 33% of the workforce in consumer and retail
banking comprises of women. In the senior levels, it is about 12% and in the top
management, it is about 6 to 9%. This organization was very cost conscious. Today they
have foreign tours, parties as national and regional levels, award nights and outings. As
an organization they have started celebrating success.

82
 Swot Analysis of HDFC Bank

Strengths

HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATMs.

83
 HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking.
The banks ATM card is compatible with all domestic
and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American
Express. This is one reason for HDFC cards to be the most preferred card for shopping
and online transactions.
HDFC bank has the high degree of customer satisfaction when compared to other
private banks.
The attrition rate in HDFC is low and it is one of the best places to work in private
banking sector.
HDFC has lots of awards and recognition, it has received Best Bank award from
various financial rating institutions like Dun and Bradstreet, Financial express,
Euromoney awards for excellence, Finance Asia country awards etc.
HDFC has good financial advisors in terms of guiding customers towards right
investments .

Weaknesses

HDFC bank doesnt have strong presence in Rural areas, where as ICICI bank its
direct competitor is expanding in rural market.
HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard
core loyals in terms of banking services.
HDFC lacks in aggressive marketing strategies like ICICI.

The bank focuses mostly on high end clients.

Some of the banks product categories lack in performance and doesnt have reach
in the market.
The share prices of HDFC are often fluctuating causing uncertainty for the
investors.

Opportunities

84
 HDFC bank has better asset quality parameters over government banks, hence the
profit growth is likely to increase.
The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.
HDFC bank has improved its bad debts portfolio and the recovery of bad debts
are high when compared to government banks.
HDFC has very good opportunities in abroad.

Greater scope for acquisitions and strategic alliances due to strong financial
position.

Threats

HDFCs nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it

is a slight variation its not a good sign for the financial health of the bank.
The non banking financial companies and new age banks are increasing in India.

The HDFC is not able to expand its market share as ICICI imposes major threat.

The government banks are trying to modernize to compete with private banks.

RBI has opened up to 74% for foreign banks to invest in Indian market.

OBJECTIVE OF THE STUDY

To identify the awareness and usage of Digital-Banking.

85
 To study the impact of digitalization.
To know how much banking services has been improved.
To study the satisfaction level of the respondents.

LITERATURE REVIEW

86
Rameshgaava (2012) in his study on Topic Indian Banking Sector finds that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and
27 public sector banks where majority ownership is included by the government. During
the reform period, the financial system permitted the banks to select their lending rates
and deposits, and also authorizes higher disclosure to make sure of large transparency in
the balance sheets. As a result of reforms in the banking sector the share of entire assets
of public sector banks was decreased to 75 percent from 90 percent. In the private sector,
the new banks entry diminished the concentration of assets which further might have
made the competition stronger which leads to more profitability, productivity, and
enhancing efficiency.

Dr. Richard Nyangosi (2014) in his study on Topic Digitizing Banking Services
finds that-

Internet and mobile technologies of recent years have gained momentum and are
impacting the working of every process including financial services. Financial Service
providers including banks are turning their necks toward the wave of these Technologies.
Their findings includes- Adoption of cell phone banking. Out of the respondents
surveyed, 26 percent had adopted cell phone banking in India out of those who adopted,
mostly were young aged. This service too like any other e-banking services is gaining
momentum as customers are finding it easy to bank 24x7. Using different common E-
banking services provided through a cell phone, which included: balance inquiry,
requesting cheque book, know last few transactions, requesting bank statement, stop
payment of cheque, and bill payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample
adopted Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have
proved to be useful to both customers and providers in recent times. Customers find it
easy, convenient, and efficient to transact conventional banking services which are non-
monetary in nature such as balance enquiry, transfer of funds, change password etc
through a mobile phone.

87
Malhotra, Pooja & Singh, (2010) This study is an attempt to present the present status
of Internet banking in India and the extent of Internet banking services offered by Internet
banks. In addition, it seeks to examine the factors affecting the extent of Internet banking
services. The data for this study are based on a survey of bank websites explored during
July 2008. The sample consists of 82 banks operating in India at 31 March 2007.
Multiple regression technique is employed to explore the determinants of the extent of
Internet banking services. The results show that the private and foreign Internet banks
have performed well in offering a wider range and more advanced services of Internet
banking in comparison with public sector banks. Among the determinants affecting the
extent of Internet banking services, size of the bank, experience of the bank in offering
Internet banking, financing pattern and ownership of the bank are found to be significant.
The primary limitation of the study is the scope and size of its sample as well as other
variables (e.g. market, environmental, regulatory etc.), which may have an effect on the
decision of the banks to offer a wide range of Internet banking services. The purpose of
the study is to help fill significant gaps in knowledge about the Internet banking
landscape in India. The findings are expected to be of great use to the government,
regulators, commercial banks, and other financial institutions, e.g. co-operative banks
planning to offer Internet banking, bank customers and researchers. The bankers as well
as society at large will come to know where the banks lag in terms of adoption of Internet
banking and in providing different products and services. An understanding of the factors
affecting the extent of Internet banking services is essential both for economists studying
the determinants of growth and for the creators and producers of such technologies.
Moreover, this paper contributes to the empirical literature on diffusion of financial
innovations, particularly Internet banking, in a developing country, i.e.
India.

Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding
e-banking services. A survey of 1,200 respondents was conducted in October 2008 in
Ludhiana district, Punjab. The respondents were equally divided among three bank

88
groups namely, public sector, private sector and foreign banks. The present study
investigates the perceptions of the bank customers regarding necessity of e-banking
services, quality of e-banking services, bank frauds, future of e-banking, preference of
bank customers regarding banks, comparative study of banking services in various bank
groups, preferences regarding use of e-channels and problems faced by e-bank customers.
The major finding of this study is that customers of all bank groups are interested in e-
banking services, but at the same time are facing problems like, inadequate knowledge,
poor network, lack of infrastructure, unsuitable location, misuse of ATM cards and
difficulty to open an account. Keeping in mind these problems faced by bank customers,
this paper frames some strategies like customer education, seminars/meetings, proper
network and infrastructure facilities, online shopping facilities, proper working and
installation of ATM machines, etc., to enhance e-banking services. Majority of
professionals and business class customers as well as highly educated and less educated
customers also feel that e-banking has
improved the quality of customer services in banks.

Azouzi, D. (2009) this paper aims to check if the current and prompt technological
revolution altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to understand the
customers' behavior regarding the adoption of electronic banking. To achieve this
purpose, an empirical research is carried out in Tunisia and it reveals that panoply of
factors is affecting the Customers attitude toward e-banking. For instance; age, gender
and educational qualifications seem to be important and they split up the group into
electronic banking adopters and traditional banking defenders and so, they have
significant influence on the customers' adoption of e-banking. Furthermore, this study
shows that despite the presidential incentives and in spite of being fully aware of the e-
banking's benefits, numerous respondents are still using the conventional banking. It is
worthy to
mention that the fear of loss because of transactions errors or hackers plays a Significant
role in alienating Tunisian customers from online banking.

89
RESEARCH METHODOLOGY

90
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.

91
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 Lucknow city.

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:

92
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?

93
 3%2%
15% Savings Account
Current Account
80% Salary Account
Other

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.

94
Q2. Since how long you are having account in HDFC Bank?

15%
33% 0-1 Year
27% 1-2 Years
25% 2-3 Years
3 Years & above

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?

10%

Branch Banking
90% Digital 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.

95
Q4. Do you use Digital Banking Services of HDFC Bank?

Yes
No
100%

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?

100%
90%
80%
70%
60%
60 80 68
50%
40%
30%
20%
10%
0
0%

Interpretation:

96
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?

100%
90%
80%
70%
60% 75 60 24 4 100
50%
40%
30%
20%
10%
0%

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?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0
ry
er

ls
ai

ue
sf

et
an

Q
D
Tr

d
e

te
ey

nc

la
on

la

re
Ba
M

an
Lo

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.

97
Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

45%
55% Yes
No

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?

100%
90%
80%
70%
60% 88.88 78.33 28.88 44.44
50%
40%
30%
20%
10%
0%

Interpretation:

98
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?

40%
60% Yes
No

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%

99
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?

18% 14% 5 Stars

4 StARS
3 Stars
68% 2 Stars
1 Star

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?

100
 2%
33% Fully Satisfied
Satisfied
65% Somewhat
satisfied
Not satisfied

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.

101
 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.

102
CONCLUSION

SUGGESTION
103
 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

104
There are certain limitations of this project report which are listed below.

This study is limited only to the customers of the HDFC bank, Lucknow.
The responses of the customers may be biased.
Sample size is limited to 100.

BIBLOGRAPHY

105
APPENDIX

106
 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?

107
 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?

108
 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?

109