A PROJECT REPORT ONOPENING SAVINGS ACCOUNTS BY

CUSTOMERS IN HDFC BANK MEETING

Under the guidance of:

Dr. Gourav Srivastava

Submitted by:
Roli Mishra Course - PGDM (4th Trimester)

LLOYD BUSINESS SCHOOL, GREAER NOIDA

INTRODUCTION
THE TOPIC: OPENING CUSTOMERS SAVINGS ACCOUNTS BY MEETING

At HDFC Bank, I was assigned with the topic as Opening Savings Accounts by Meeting Customers for my project work. I joined the company as a Sales Executive. The selection of the topic was to know how the company generates business through them. Sales Executives are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Company has certain criteria to recruit these Sales Executives. The steps are as follows. He should be at least 12th Passed. He should have good personal contacts. He should have convincing power. He should be above 18thyear old. O n c e h e t h r o u g h a l l t h e s e s t e p s o f r e c r u i t me n t , h e b e c o me s t h e S a l e s E x e c u t i v e o f t h e company and reserve the right to sale the various products to any prospect client also he is paid the commission a certain percentage. There are some reward and tour package also. REASON FOR SELECTION OF THIS TOPIC: The financial sector is one of the booming and increasing sectors in India. The Sales Executives are one of the most powerful, efficient and effective channel through which the company sales its various types of financial products. It is really difficult to convince customers and sell a single product but since these executives have their own personal contacts which make the entire task easier to sell a product. Whereas in my entire project work I found my interest in working in a team, dealing with customers and finally convincing them to open an account with the bank.

IMPORTANCE TO THE COMPANY: The ultimate purpose of giving me this topic was to know about the customers perceptions about the different products of the b a n k , h o w t h e s e p r o d u c t s c a n a t t r a c t t h e m a n d h o w t h e company can generate maximum profit by convincing them through sales executives. LEARNING FROM THE STUDY: The process of recruitment for Sales Executives of HDFC Bank. Different products and services provided by the bank. Customers perception about the different products. The brand image of the bank. What are the problems faced by these sales executives daily basis. How to communicate with the customers. Different techniques of dealing with the customers. How to convince and convert a customer into a real customer.

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

 PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paidup capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Share listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

 DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need 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 a strong and active member base. The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. MANAGEMENT Mr. Jagdish kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor wasa 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.

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

RATING: I. Credit Rating The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit program me 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) program me "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 program me, 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 program me and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments. II. Corporate Governance Rating The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Service of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest

PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, t h e c o mp a n y h a s a r a n g e a c c o u n t s , i n v e s t me n t , a n d p e n s i o n s c h e m e , different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations t h e c o mp a n y h a s a host of customized solutions that range fromFunded services, Nonfunded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the e mp l o ye e s h e l p i n e n h a n c i n g goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards. Customer center

PRODUCTS AND SERVICES AT A GLANCE PERSONAL BANKING A. Accounts & Deposits Regular Savings Account Savings Plus Account Savings Max Account Senior Citizens Account No Frills Account Institutional Savings Account Payroll Salary Account Classic Salary Account Regular Salary Account Premium Salary Account Defense Salary Account Kid's Advantage Account Pension Saving Bank Account Family Savings Account Kisan No Frills Savings Account Kisan Club Savings Account Plus Current Account Trade Current Account Premium Current Account Regular Current Account Apex Current Account Max Current Account Reimbursement Current Account RFC - Domestic Account Regular Fixed Deposit

 Super Saver Account Sweep-in Account HDFC Bank Preferred Private Banking B. Loans Personal Loans Home Loans Two Wheeler Loans New Car Loans Used Car Loans Overdraft against Car Express Loans Loan against Securities Commercial Vehicle Finance Working Capital Finance Construction Equipment Finance Offers & Deals Customer Center

C. Investments & Insurance Mutual Funds- Insurance Bonds- Financial Planning Knowledge Centre Equities & Derivatives Mudra Gold Bar

D. Forex Services Trade Finance Travelers Cheques Foreign Currency Cash Foreign Currency Drafts Foreign Currency Cheque Deposits Foreign Currency Remittances Cash To Master Forex Plus Card E. Payment Services Net Safe Prepaid Refill Bill Pay Direct Pay Visa Money Transfer E-Monies Electronic Funds Transfer Excise & Service Tax Payment

F. Access Your Bank One View Insta Alerts Mobile Banking ATM- Phone Banking Branch Network

G. Cards Silver Credit Card Gold Credit Card Woman's Gold Credit Card Platinum plus Credit Card Titanium Credit Card Value plus Credit Card Health plus Credit Card HDFC Bank Idea Silver Card HDFC Bank Idea Gold Card Compare Cards Transfer & Safe Track your Credit Card H. Get More from Your Card Offers & Savings My Rewards Insta Wonderz Add-On Cards Credit Card Usage Guide Easy EMI Net safe Smart Pay Secure Plus My City Benefit Card Debit Cards Easy Shop International Debit Card Easy Shop Gold Debit Card Easy Shop International Business Debit Card

 Easy Shop Woman's Advantage Debit Card Prepaid Cards Forex Plus Card Kisan Card I. Customer Centre Offers & Deals Winners of Contests & Promotions 2. Wholesale Banking A. Corporate Funded Services Non Funded Services Value Added Services Internet Banking B. Small & Medium Enterprises Funded Services Non-Funded Services Specialized Services Internet Banking C. Financial Institutions & Trusts Bank Financial Institutions Mutual Funds Stock Brokers

MILESTONES IN THE HISTORY HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help us get there. Today, they are proud to say that they are well on our way towards that goal. It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally. MERGER HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab. The combined entity would have a nationwide network of 1,148 branches (the largest amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500 billion. Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, We were amongst the first to get a banking license, the first to do a merger in the private sector with Times Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector banking space in India. HDFC Bank was looking for an appropriate merger opportunity that would add scale, geography and experienced staff to its franchise. This opportunity arose and we thought it is an attractive route to supplement HDFC Banks organic growth. We believe that Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach to business. Mr. Aditya Puri, Managing Director, HDFC Bank Said, These are exciting times for the Indian banking industry. The proposed merger will position the combined entity to significantly Exploit opportunities in a market globally recognized as one of the fastest growing. Im particularly bullish about the potential of business synergies and cultural fit

Between the two organizations. The combined entity will be an even greater force in the market. Mr. Rana Talwar, Chairman, Centurion Bank of Punjab Stated, Over the last few years, Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nationwide network, an extremely valuable franchise, 7,500 talented employees, and strong leadership positions in the market place. I believe that the merger with HDFC Bank will create a world class bank in quality and scale and will set the stage to compete with banks both locally as well on a global level. Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, We are extremely pleased to receive the go ahead from our board to pursue this opportunity. A merger between the banks provides significant synergies to the combined entity. The proposed merger would further improve the franchise and customer proposition offered by the individual banks. FINANCIAL FIGUREUNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008

QUALITY POLICY SECURITY: The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders i n t h e b a n k . Hence, it will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, the bank offers arrange of innovative products to meet these needs. INTEGRITY CUSTOMER CENTRIC PEOPLE CARE ONE FOR ALL AND ALL FOR ONE TEAM WORK JOY AND SIMPLICITY

CHAPTER 3- RESEARCH RESEARCHPROJECT

OBJECTIVES

AND

SCOPE

OF

PROBLEM DEFINATION: Sales Executives were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the custom ers is also a problem to the sales executives. OBJECTIVES OF RESEARCH PROJECT: 3.2.1 PRIMARY OBJECTIVES: To open new savings accounts by convincing customers and to promote the benefits of those which are provided by the bank? To find the different way of convincing customers. To study brand image of the bank. To increase the business of the bank. SECONDARY OBJECTIVES: To determine the need and purpose of a sales executive. To understand the deciding criteria for people to become sales executive. To offer suggestions based upon the findings GEOGRAPHICAL SCOPE: The same problem was with the all other branches of HDFC Bank even out of the Basti city(Uttar Pradesh). The management is conducting the same research on a big ground while my contribution is tiny. Though my sample size and geographical area was defined and confine to a particular territory but the application of output from the research are going to be wide

PRODUCT SCOPE: Studying the increasing business scope of the bank. Market segmentation to find the potential customers for the bank. To study how the various products are positioned in the market. Corporate marketing of products. Customers perception on the various products of the bank.

CHAPTER4- RESEARCH METHODOLOGY AND LIMITATIONS All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession at Basti (Uttar Pradesh). RESEARCH PLAN: 4.1.1. Preliminary Investigation: In which data on the situation surrounding the problems shall be gathered to arrive at The correct definition of the problem. An understanding of its environment. Exploratory Study: To determine the approximate area where the problem lies. RESEARCH DESIGN: Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present s ys t e m a n d p r i ma r y d a t a w i l l h e l p t o v a l i d a t e t h e a n a l ys i s o f s e c o n d a r y d a t a b e s i d e s o n unrevealing the areas which calls for improvement. DEVELOPING THE RESEARCH PLAN: The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured q u e s t i o n n a i r e w a s f r a m e d a s i t i s l e s s t i me c o n s u mi n g , g e n e r a t e s s p e c i f i c a n d t o t h e p o i n t information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.

Collection of Data:1: Secondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companys database and website of the company. 2 : P r i ma r y d a t a : All the people from different profession were personally visited a n d interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Basti (Uttar Pradesh). Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE: My sample size for this project was 200 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 200 respondents

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected. RESEARCH LIMITATIONS: It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 45 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Basti District(Uttar Pradesh) so the findings should not be generalized. The area of research was Basti (Uttar Pradesh) and it was too vast an area to cover within 45 days

CHAPTER6- CONCLUSIONS AND SUGGESTIONS 6.1 CONCLUSIONS: HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good number of employees on board and is recruiting Sales Executives heavily to t a k e t h e h e a d c o u n t t o ma n y m o r e . I t i s o n t h e b r i m o f i n c r e a s i n g i t s c u s t o me r s t h r o u g h i t s attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective customers in potential geographical location and convincing them to open an account so that new Business Opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not interested to open an account at all. s e r v i c e s w a s considered as unsought good which require hard core selling, but in c h a n g i n g t r e n d i n i n c o m e a n d p e o p l e b e c o mi n g f i n a n c i a l l y l i t e r a t e , t h e d e m a n d f o r b a n k i n g sector is increasing day by day.A c c o r d i n g t o m y f i n d i n g s C o m p a n y s p r o m o t i o n a l a c t i v i t i e s f o r r e c r u i t i n g s a l e s executives are also very less. So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank HDFC Bank for giving me an opportunity to work in the field of Marketing. I hope the company finds my analysis relevant.

SUGGESTIONS: Finally some recommendations for the company are as follows:T o m a k e p e o p l e a w a r e a b o u t t h e b e n e f i t o f b e c o m i n g H D F C . B a n k s S a l e s Executive, following activities of advertisement should be done through 1. Print Media. 2. Hoarding&Banners 3. Stalls in Trade Fares 4. Distribution of leaflets containing details information..

The bank should provide life time valid ATM card to all its customers. Minimum balance for savings account should be reduced from Rs 15000 to Rs1000, so that people who are not financially strong enough can maintain their account properly The company should provide a pass book to all its customers Make people understand about the various benefits of its products. Company should organize the program in the society, so that people will be aware about the company and different products of the bank Company should open more branches in different cities.

CHAPTER7- LIMITATIONSLIMITATIONS E v e r y w o r k h a s i t s o w n l i mi t a t i o n . L i mi t a t i o n s a r e e x t e n t t o w h i c h t h e p r o c e s s s h o u l d n o t . Limitations of this project are:The project was constrained by time limit of two months. Mindset of people may vary depending upon their age, gender, income etc. Getting appointment from the concern person was very difficult. P e o p l e m i n d s e t a b o u t t h e s u r v e y w a s a n o b s t a c l e i n Acquiring complete information & positive interaction. Respondents were very busy in their schedule. So it was very time consuming for them to answer all the questions properly

ANNEXURES

1. Questionaire

Name.....
Address... . Contact No (R).(O)..(M).

Dear Sir/Madam,

I am a student of LLOYD BUSINESS SCHOOL, Greater Noida (UP.)And presently doing a project on O P E N I N G S A V I N G S A C C O U N T B Y M E E T I N G CUSTOMERS. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. 1. Your Age: ___________________ 2. Education Qualification Undergraduate Graduate

 Post graduate 3. Marital Status Married Single No. of Children: __________ 4. Number Of years Are You in UP. Less than five years More than five years

5. Occupation. Business

Profession Service
(Please mention below the type of Business/Profession you are in increase of service please mention your organization name and designation).

6. Your annual household income <2 lacks. Between 2 to 5 lacks. Between 5 to 8 lacks. >8 lacks.

7. Are you a member of club/gym? Yes No 8. What is your perception about different products and services offered by HDFC Bank? Lucrative Non-lucrative No Idea 9-Do you want to open a saving account with HDFC Bank? Yes No Will tell later 10. Do you have all the documents which are required to open an account? Yes No 11. Are you aware of that HDFC Bank provide you a free demete account if you open a saving account with the bank? Yes No 12. Are you aware of different terms and condition which are very much essential to maintain an account at HDFC bank? Yes No

13. Do you know about HDFC banks recruitment policies related to sales executives? Yes No

Date. Place. Signature

Thank You

Bibliography

1. BOOKS Marketing Management Marketing Management (3rd Edition) Research Methodology(2nd Edition) 2. NEWS PAPERS TIMES OF INDIA BUSINESS STANDARD 3. WEBSITES. www.google.co.in www.hdfcbank.com www.easylib.com

Author Philip Kotler V.S.Ramaswamy C.R.Kothari