A PROJECT REPORT

ON

“COMPERATIVE ANALYSIS AND CORPORATE SELLING OF

CURRENT ACCOUNT”

CARRIED OUT AT

BY
OMPRAKASH
IN PARTIAL FULFILLMENT OF
PGDM
(2010-2012)

INDIRA SCHOOL OF BUSINESS STUDIES,

TATHAWADE, PUNE-33
OBJECTIVE:

My primary objective was to generate the lead for the bank. I had to generate the
business for the bank any how. So many things had been given by the bank to me for doing in
one shot. Such as, generating the lead, promoting the products of the bank, to organize the
activities in companies and organizations, to collect the database of customers for the bank
etc. since then I divided my objective into two parts, first is, primary objective and second is
secondary objective. Having kept in mind of this thought, I started to sort out my all objective
as primary and secondary.

I decided that I would keep primary objective as promoting the products of bank to
Corporate Customers. And mapping the area, to organize activities in various areas and
organizations, to collect the database for customers will be my secondary object
COMPANY OVERVIEW

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

1) Promoters

2) Business Focus

3) Capital Structure

4) Times Bank Amalgamation

5) Distribution Network

6) Management

7) Technology

8) Businesses

9) Ratings
1) Promoters

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage

loans to different market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.

2) Business Focus

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate governance
and regulatory compliance. HDFC Bank's business philosophy is based on four core values -
Operational Excellence, Customer Focus, Product Leadership and People.

3) Capital Structure

The authorized capital of HDFC Bank is Rs.450cr (Rs.4.5 billion).The paid-up capital
is Rs.311.9cr (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about
19.4% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the
Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".
4) Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited

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

5) Distribution Network

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

network of over 744 branches spread over 339 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a presence
in all major industrial and commercial centers where its corporate customers are located as
well as the need to build a strong retail customer base for both deposits and loan products.
Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in
the centers where the NSE/BSE has a strong and active member base.

The Bank also has a network of about over 1658 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.

6) Management

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
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.

7) Technology

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch
access is also provided to retail customers through the branch network and Automated Teller
Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The
Bank's business is supported by scalable and robust systems which ensure that our clients
always get the finest services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

8) Businesses

HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. 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 corporate 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 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 corporate including multinationals, companies from
the domestic business houses and prime public sector companies. It is recognized as

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 the
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.
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 September 30, 2005, the bank had a total
card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading
players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals
for debit / credit cards acceptance at merchant establishments.
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
liberalization of the financial markets in India, corporate 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.

9) Ratings
Ratings are given under two types:

I) Credit Ratings

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

(II) Corporate Governance Ratings

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

10) Awards & Honors

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". We realised 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

2007:-

Business Today- One of India's "Most Innovative Companies"3

Monitor Group
survey

Financial Express- Best Bank Award in the Private Sector category

Ernst & Young
Award
Global HR 'Employer Brand of the Year 2007 -2008' Award - First Runner up, &
Excellence Awards- many more
Asia Pacific HRM
Congress:

Business Today 'Best Bank' Award

Dun & Bradstreet – 'Corporate Best Bank' Award

American Express
Corporate Best
Bank Award 2007

The Bombay Stock 'Best Corporate Social Responsibility Practice' Award

Exchange and
Nasscom
Foundation's
Businessfor Social
Responsibility
Awards 2007

Outlook Money & Best Bank Award in the Private sector category.
NDTV Profit

The Asian Banker Best Retail Bank in India

Excellence in Retail
Financial Services
Awards

Asian Banker Our Managing Director Aditya Puri wins the Leadership Achievement
Award for India

There have been some other proud moments as well:-

 London-based Euro money magazine gave us the award for "Best Bank - India" in
1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002
  Asia money magazine has named us "Best Commercial Bank in India 2002".

 For our use of information technology we have been recognized as a "Computerworld

Honors Laureate" and awarded the 21st Century Achievement Award in 2002 for Finance,
Insurance & Real Estate category by Computerworld, Inc., USA.

 Our technology initiative has been included as a case study in their online global
archives.The Economic Times has conferred on us The Economic Times Awards for
Corporate Excellence as the Emerging Company of the Year 2000-01.

 Leading Indian business magazine Business India named us "India's Best Bank" in
2000.

 In the year 2000, leading financial magazine Forbes Global named us in its list of "The
300 Best Small Companies" in the world and as one of the "20 for 2001" best small
companies in the world.

 We are aware that all these awards are mere milestones in the continuing, never-
ending journey of providing excellent service to our customers. We are confident,
however, that with your feedback and support, we will be able to maintain and improve
our services.

THE ORGANIZATION:
 HDFC Bank was amongst the first to receive an 'in-principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector from Housing Development Finance
Corporation Limited (Bank), in 1994 during the period of liberalisation of the banking sector
in India.HDFC India was incorporated in August 1994 in the name of HDFC Bank
Limited'.HDFC India commenced operations as a Scheduled Commercial Bank in January
1995.

HDFC India deals in varieties of products like home loan, standard life insurance, mutual
fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, and Ahmedabad apart from HDFC Mumbai
Headquarter HDFC India :

'Trade Star', 2nd floor, 'A' Wing,

Junction of Kondivita and M.V. Road,
Andheri-Kurla Road,
Andheri (East), Mumbai - 400 059.
Tsel: (Board) 2822 0055 / 55516666 (Fax) : 2822 9998 / 2822 2414
Network : More than 468 branches over 212 cities across the country
ATMs : The ATMs of HDFC India can be accessed by all domestic and international
Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
Authorized capital: Rs. 450 crore

Paid-up capital: Rs. 282 crore

Equity: Holds 24.2%

listing: HDFC India has been listed on the Stock Exchange, Mumbai and the National Stock
Exchange. The bank's American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol "HDB"
RESEARCH METHODOLOGY

METHODOLOGY
This project required a proper approach for research as it needed to cover lot of areas. The
conclusion is based on the visits made to these companies in various areas.
The survey was conducted by Sampling Survey Method.
Sample Units: Various companies and Enterprises in Pune
Companies Visited: 350
The research was an exploratory type of research, which aimed at studying the feasibility of
the product, development of the channel, competitive analysis to develop effective sourcing
strategy.
The research tool used for this purpose was personnel Interview which consist of closed ended
questions. The data has been collected from various companies in Pune by Personal Interview
Method.
I divided city in some major areas to make this research simpler and easier. All the major
areas of the city were covered during the field work. Major areas visited are:
1. MIDC Bhosari
2. FC Road
3. Kothrugd
4. Hinjewadi Phase 1,2 & 3
5. Pimpri chinchwad Industrial Area
6. JM Road

Research Design:
“Prior to begin this project I had designed my whole procedure, which means I arranged the
conditions for collection and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure. In which I had included the following
decision:

a) What is the study about?

b) Why is the study being made?
c) Where will the study be carried out?
d) What type of data is required?
e) Where can the required data are found?
f) What periods of time will the study include?
g) What will be the sample design?
h) What techniques of data collection will be used?
i) How will the data be analyzed?
j) In what style will the report be prepared?

Sampling:

When field studies are undertaken in practical life, consideration of time and cost almost
invariably lead to a selection of respondents i.e., selection of few items. In short, Sampling is
the study of the part of the population or universe, or selecting a part of an aggregate, on the
basis of which any conclusion can be taken out for whole aggregate. In other words we can
say that sampling is the collection of information about an entire population through
examining a part of it. So I have decided to select 300 corporate as sample to conduct my
research.

ORGANIZATIONAL STRUCTURE
 CEO/ ONLY 1 IN
MD COUNTRY

COUNTRY/GR
ONLY 1 IN
OUP HEAD COUNTRY
NATIONAL
SALES
ONLY 1 IN
MANAGER COUNTRY

ZONAL
SALES
MANAGER
REGIONAL
14 & 3 UNDER 1
SALES
ZSM
MANAGER

4 UNDER 1 AREA SALES

RSM HEAD

AREA SALES 4 UNDER 1

MANAGER ASH

SALES
5 UNDER 1 ASM
MANAGER

TEAM 4 UNDER 1 SM
LEADER

SSO/CSE 7 UNDER 1 TL
THE QUESTIONNAIRE:

Personal details

Name of Company & Firm: ---------------------------------------------

Address: --------------------------------------------------------------------
Contact person & no. -----------------------------------------------------
Desingnation ---------------------------------------------------------------
Age ------------------------------------

 (Please tick only)

Question 1: What kind of image do you have for HDFC Bank?

Ans: (a) very good (b) good (c) bad (d) very bad

Question 2: would you like to maintain long-lasting relationship with HDFC Bank?

Ans: (a) yes (b) may be (c) depends on situation (d) no

Question 3: How much do you personally give importance to the business banking
relationship?

Ans: (a) Highly (b) very much (c) so-so (d) not much

Question 4: Are you satisfied with HDFC Bank’s services?

Ans: (a) Highly satisfied (b) satisfied (c) partially satisfied (d) not satisfied

Question 5: Do you often want to change your bank?

Ans: (a) never (b) depends on situation (c) rarely (d) yes

Question 6: Are you aware about the products of HDFC Bank related to business banking?

Ans: (a) yes (b) not much (c) not at all

Question 7: Have you any current account in any bank?
Ans: (a) Yes (b) No

Question 8: What do you see before choosing a bank?

Ans: (a) better services (b) charges (c) time (d) proximity to your Office or home?

Question 9: What kind of bank would you prefer?

Ans: (a) Public sector (b) pvt. Sector (c) cooperative banks

Question 10: what`s your annual turnover and ratio of cash and cheque

Ans: (a) 12 lac (b) 25lac (c) 50lac (d) above 1cr