A REPORT

ON

STUDY ON SEGMENTATION AND PENETRATION OF RETAIL

BRANCH BANKING DIVISION OF HDFC BANK

By
ARUN KUMAR REDDY BOBBILIGAMA
Enrollment No. : 17BSPHH01C1350

Name of the Organization: HDFC BANK LIMITED

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 A REPORT
ON

STUDY OF ON SEGMENTATION AND PENETRATION OF RETAIL

BRANCH BANKING OF HDFC BANK

By
ARUN KUMAR REDDY BOBBILIGAMA
Enrollment No. : 17BSPHH01C1350

A report submitted in partial fulfilment of the requirements of MBA Program of

Distribution list:
Company Guide Name: Faculty Guide Name:
D.R.SRIDHAR Prof. Siddhartha Kushwaha
Branch Manager,Mehdipatnam. Faculty,
HDFC Bank Ltd. IBS Hyderabad.

Date of submission: 15th May 2018.

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 AUTHORIZATION

This is to certify that this is a bonafide project report submitted in partial fulfilment of the
requirements of MBA program of ICFAI Business School, Hyderabad.

This report document titled “STUDY ON SEGMENTATION AND PENETRATION OF

RETAIL BRANCH BANKING DIVISION OF HDFC BANK LIMITED” is a
submission of work done by Arun kumar Reddy.

I also declare that this project is a result of my own efforts & it has not been copied. I may
have only taken the references from the various sources, which are mentioned in the
reference section at the end of the project.

This report has been formally submitted to Prof. Siddhartha Kushwaha, Faculty, IBS
Hyderabad.

This report has been verified and authenticated by:

Prof. Siddhartha Kushwaha

Faculty,

IBS Hyderabad.

Date of submission: 15th May 2017.

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 ACKNOWLEDGEMENT

The internship opportunity I had with HDFC Bank Ltd. was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship period.

I am using this opportunity to express my deepest gratitude and special thanks to

D.R.SRIDHAR Branch Manager, HDFC Bank Mehdipatnam who in spite of being
extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct
path and allowing me to carry out my project at their esteemed organization and extending all
support during the training. I choose this moment to acknowledge her contribution gratefully.

It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to Mr.
Sarath singh, Relationship Manager, Mr. Saleem, Relationship Manager for their careful and
precious guidance which were extremely valuable for my study both theoretically and
practically. I perceive as this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way, and I will continue to work
on my improvement, in order to attain desired career objectives. Hope to continue cooperation
with all of you in the future.

I am deeply grateful, to my faculty guide Prof. Siddhartha Kushwaha, for his invaluable
suggestions, comments, feedback and support throughout the internship. They have served as
a beacon of light. Her patience and faith in my abilities always boosted my confidence.

Sincerely,

Arun Kumar Reddy

Place: Hyderabad

Date of submission: 15th May 2017.

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 TABLE OF CONTENTS

S. NO. CONTENTS PAGE

1 Organization Profile 7
2 Industry Analysis 8
2.1 An Overview of the Banking Sector 9
2.2 The Structure of Indian Banking Sector 10
2.3 Trends in Banking Industry Sector 11-15
2.4 Economic Reforms in Banking Sector 16-18
2.5 Digital Transformation in Banking 19
2.6 Performance Analysis of Banking Sector 20-21
3 Company Analysis
3.1 Company Profile:
3.2 Background
3.3 Promoter
3.4 Business Focus 21-24
3.5 Distribution Network
3.6 Business Profile
3.7 Performance of HDFC Bank Limited
3.8 Awards
4 Project Introduction
5 Objectives of this Project
6 Scope of this Project
7 Limitations of this Project
8 Methodology 24-29
9 Summary of Customer Responses 30-32
10 Findings Of This Project
11 Conclusion
12 Bibliography
12.1 Books Referred
12.2 Journals Referred
12.3 Websites Referred

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 TABLE OF ILLSUTRATIONS
S. NO. CONTENTS PAGE
1 1.1 Structure of Indian Banking Sector 13
2 1.2. Electronic Fund Transfer 15
3 1.3 Asset classification 16
4 1.4 SMA classification 16
5 1.5 Digitalization Impact 18
6 1.6 Total Deposits in India over last few years 19
7 1.7 Comparison of NPA to Total Loans among different Countries 19
8 2.1. Comparison of HDFC Bank PAT over last few years 22
9 2.2. Comparison of Private Sector Banks 22
10 2.3. Private Sector Banking Performance 23
11 3.1 Flowchart of Segmentation 24
12 3.2 Penetration strategies 26
13 4.1 Financials of the Company 31

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 ABSRTRACT

Banking Industry plays an important role in the economic development of a country. A strong
and healthy banking system is vital for economic growth of the country. This project report
intended to understand Acquisition strategy of wholesale Banking division of HDFC Bank
Limited in acquiring new clients/take-over of credit facilities of other banks to generate
revenues by increasing asset size and process laid by the bank in sanctioning the loans to SME,
Mid-Market and Corporate space viz analysing the Financial performance, Management
Profile, Business Model and Industry Risk of the company along with others parameters taken
into consideration while assessing the credit proposals. This project intended to study how the
HDFC Bank approaches corporates with wide range of products viz Fund based limits like term
loans, working capital limits, cash credit and Non Fund based limits like letter of credit and
bank guarantee with differentiating services like cash management services, united payment
interface and automatic clearing house that can facilitate smooth running of business operations
and transactions.

Business Model and Industry Risk of the company along with other parameters taken into
consideration while assessing the credit proposals and thereby shortlist the target companies to
meet with the key decision makers of the respective companies As it says, that a success of sale
lies in providing the right solution with a mix of products, to ease pain points for the customer.
Similarly bank focuses on understanding requirements of the customer to offer better services.
In certain cases, corporate might neither require credit facilities nor working capital
requirements due to adequate cash flows, business model. However Bank tries to cross sell
various products and services viz CMS, ACH, UPI and treasury related services to acquire
relationship with the corporate. Additionally, the project would help to analyse risk involved
in sanctioned facilities and the Credit Monitoring mechanism followed by the bank as the Asset
Quality of the bank (NNPA –0.33% as on 31.03.2017) is the best compared to the Industry
peers. This Project is
also intended to study the role of Relationship Manager in handling existing customers and
their role in acquiring new business to the bank as Relationship Manager remains the Centre
force and face of bank for the customer. The effect of financial reforms taken by Government
of India like Demonetization, Implementations of Goods and Service Tax as well as effect of
consolidation in banking sector on HDFC bank can be studied.

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2. INDUSTRY ANALYSIS

2.1 AN OVERVIEW OF THE BANKING SECTOR:

Banking is backbone of any economy and lifeline of trade and economy. The success of an
economy is supported by a strong banking system and similarly banks are more successful
when the economy does well. A bank is a financial institution that provides banking and other
financial services to their customers. Banking Industry in India is regulated by Reserve Bank
of India, which is charged with the responsibility of ensuring availability of adequate funds not
only to meet the credit needs of the trade and economy. As per the Reserve Bank of India
(RBI), India’s banking sector is sufficiently capitalised and well regulated. The financial and
economic conditions in the country are far superior to any other country in the world. Credit,
market and liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.

2.2 THE STRUCTURE OF INDIAN BANKING SECTOR

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 45
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks control
nearly 80 percent of the market, thereby leaving comparatively much smaller shares for its
private peers. Banks are also encouraging their customers to manage their finances using
mobile phones.

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(Source: RBI) Fig.2.1: Structure of Indian Banking Sector

The Indian Banking industry is currently worh USD 1.31 Trillion. The Contribution of the
banking sector to GDP is about 7.7% of GDP. Banking sector has generated employment in
the economy for about 1.5 million people. Total banking sector assets have increased at a
CAGR of 7.61 per cent to USD 1.957 billion during FY13–16. Total assets of Public Sector
Banks amounted to USD 1957.03 billion in FY16. According to RBI, Assets of public sector
banks, which account for more than 70 per cent of the total banking assets, grew at a CAGR of
5 per cent where as Private sector expanded at an CAGR of 13 per cent, while foreign banks
posted a growth of 14 per cent.

2.3 TRENDS IN THE BANKING INDUSTRY SECTOR

Improved Risk Management Practices:

• Indian banks are increasingly focusing on adopting integrated approach to risk

management.
• Banks have already embraced the international banking supervision accord of Basel II.;
interestingly, according to RBI, majority of the banks already meet capital requirements
of Basel III, which has a deadline of 31 March 2019.
• Most of the banks have put in place the framework for asset-liability match, credit &
derivatives risk management.

Technological Innovations:

• Indian banks, including public sector banks are aggressively improving their
technology infrastructure to enhance customer experience & gain competitive
advantage
• Internet and mobile banking is gaining rapid foothold. Customer Relationship
Management (CRM) and data warehousing will drive the next wave of technology in
banks.

Consolidation:

• With entry of foreign banks competition in the Indian banking sector has intensified

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  Banks are increasingly looking at consolidation to derive greater benefits such as
enhanced synergy, cost take-outs from economies of scale, organizational efficiency &
diversification of risks

Electronic Fund Transfer:

Modes of Fund Process of Fund Transfer

Transfer
National Assist fund transfer from one bank to other through RBI server and settlement
Electronic occurs among banks through their current accounts maintained with RBI. RBI
Fund Transfer system enables 3 sessions of electronic clearing. The settlement happens
(NEFT) within 24 hours and there is no limit for amount transacted.

Real Time It is a payment mechanism for interbank payments. In this method, one bank
Gross makes payment electronically to another bank through RBI. Banks
Settlement participating in RTGS have to maintain a current account with RBI and each
(RTGS) transaction is settled within 2 hours. Transaction or remittance once made can
never be cancelled or modified. Minimum transaction limit is Rs. 100000.

Immediate It is an instant real time interbank electronic fund transfer system of India
Payment through mobile phone. This facility is available on a 24*7* basis.
Service
(IMPS)

Unified It interconnects banks to help transfer funds. In this mode, both money sender
Payment and receiver need a UPI identity. Currently thirty banks in India offer this
Interface (UPI) facility.

Unstructured It helps customers to link their mobile number and bank accounts and then to
Supplementary make payments. It is technology based service for feature phones through
Service Data which customers needed to dial *99# and enter short messages for basic
(USSD) banking activities such as balance enquiry and generating mini statement.

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 Mobile It refers to conduct of banking operations on mobile. It is a service provided
Banking by a bank or other financial institution that allows customers to conduct
financial transactions via mobile device like mobile phone or tablet. This
facility is available on a 24 hour basis and some banks impose restrictions on
which accounts can be accessed and limits the amount of transaction.

(Fig 2.2. Electronic Fund Transfer)

2.4 ECONOMIC REFORMS IN BANKING SECTOR

Evolution of NPA Management:

Reserve Bank of India has been working on various mechanisms whereby stressed bank assets
can be reconverted into being productive. Thus, the Indian banking system has seen a slew of
measures over the last few years to combat the NPA issue. Non-performing assets are further
classified into the following three categories on the basis of the duration for which they have
remained non-performing:

Asset Classification Basis for classification

Sub-Standard Assets Assets that have remained NPA for a period of less than or equal to 12
months

Doubtful Assets NPA’s that have been in the sub-standard category for 12 months.

Loss Assets Assets where loss has been identified by the bank or external auditor/
RBI team but has not been fully written off.

(Source: Reserve Bank of India, 2015a Fig 2.3. Asset classification)

Apart from the classification of NPA’s, banks are also required to identify financial distress
early by monitoring assets that have not yet turned non-performing but are showing signs of
incipient stress. This is done by creation of 3 sub-categories under the ‘Special Mention
Accounts’ (SMA):

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 SMA Sub- Basis for classification
categories

SMA-0 Principal or interest payment not overdue for more than 30 days but account
showing signs of incipient stress (Please see Annex)

SMA-1 Principal or interest payment overdue between 31-60 days

SMA-2 Principal or interest payment overdue between 61-90 days

(Source: Reserve Bank of India, 2015a Fig 2.4 SMA classification)

Know Your Client:

• RBI mandated the Know Your Customer (KYC) Standards, wherein all banks are
required to put in place a comprehensive policy framework in order to avoid money
laundering activities.
• The KYC policy is now mandatory for opening an account or making any investment
such as mutual funds.

Demonetization:

• RBI Deputy Governor, said that since demonetization the Central Bank has collected
over USD 185.81 billion in demonetized notes from various bank branches
• The effects of demonetization are also visible in the fact that bank credit plunged by
0.8 per cent from November 8 to November 25, as USD 9.85 billion were paid by
defaulters. As per RBI, a total of USD 125.53 billion was deposited in banks till
November 27, 2016
• As of March 2017, debit cards have radically replaced credit cards as the preferred
payment mode in India, after demonetization. As of October 2016, debit cards garnered
a share of 42 per cent of the total card spending, which increased to 60 per cent, post
demonetization.

2.5 DIGITAL TRANSFORMATION IN BANKING

Digital Transformation is far beyond just moving from traditional banking to a digital world.
It is a vital change in how banks and other financial institutions learn about, interact with and
satisfy customers. An efficacious Digital Transformation begins with an understanding of

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digital customer behaviour, preferences, choices, likes, dislikes, stated as well as unstated
needs, aspirations leads to the major transformation in the organizations, from product-centric
to customer-centric view. According to study by CGI entitled, Understanding Financial
Consumers in the Digital Era sheds some light on the desires of today’s digital consumer and
their willing to leave where they currently bank if their needs are not met.

The most effective way to understand and bring the organization from traditional banking to
digital banking is Omni-Channel approach. Omni-channel is a multichannel approach to
customer service where all the channels are tightly integrated, keeping customer in the center
of the integration. As customers continue to change their channel usage patterns, banks and
credit firms need to focus on delivering a seamless customer experience across various touch
points. More than just an axiom, Omni-channel banking is a prospect to take bottom-line on
higher note by gaining insights from customers’ channels, behaviour and preferences.

Today’s customers are more sophisticated and tech savvy, and to cater to their specific needs,
each customer needs a unique experience from banking. They want the companies to
understand their unstated needs as well as their likes. So, it should come as no surprise that
these customers are expecting similar kind of response and service from banking institutions
too. From researching new services, opening an account, checking balance, conducting
transactions, loans, credits, wealth management, customer support, delivering an Omni-
channel experience has become a key to success in this competitive market place.

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 2.6 PERFORMANCE ANALYSIS OF BANKING SECTOR

 Total banking sector credit is expected to increase at a CAGR of 1.7 per cent during
FY11 to FY17 to USD 990.61 billion in FY17.
 The banking sector witnessed a balance sheet growth of 7.7 percent in 2015-16
compared to 9.7 percent a year earlier.
 According to ICRA, Deposit growth surges after demonetisation to 16%.
 During FY06–16, Total money supply in the country increased at a CAGR of 11.47 per
cent and reached 1.46 trillion in FY16.

 Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have also increased. As of
October 2016, US$ 6,755.5 million were deposited, while 249.8 million accounts were
opened

(Source: IBEF, fig 2.6 Total Deposits in India over last few years)

 During FY17, USD 1 trillion was the total value of bank loans in India.

Comparison of NPA to Total Loans amongst World Top Countries in %

Country 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Brazil 3.5 3.5 3 3.1 4.2 3.1 3.5 3.4 2.9 2.9
China 8.6 7.1 6.2 2.4 1.6 1.1 1 1 1 1.2
Euro Area 1.8 1.3 1.8 2.8 4.8 5.4 6 7.5 7.9 6.8
Indonesia 7.3 5.9 4 3.2 3.3 2.5 2.1 1.8 1.7 2.1
India 5.2 3.5 2.7 2.4 2.2 2.4 2.7 3.4 4 4.3
Japan 1.8 1.8 1.5 2.4 2.4 2.5 2.4 2.4 2.3 1.9
Russia 2.6 2.4 2.5 3.8 9.5 8.2 6.6 6 6 6.7

0.7 0.8 1.4 3 5 4.4 3.8 3.3 2.5 1.9

United States

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  Gross NPAs continue to increase; stand at 9.2% as on September 30, 2017 vs 7.7% as
on March 31, 2018
 As of FY 2016, around 44 percent people are using net banking, which remains the
most favourite mode of payment among internet users in India
 According to ICRA, Credit growth remains muted; drops further post-demonetization.
Expected to be 5-6% for FY 2017
 According to RBI, Cumulative cut in deposit rates stands at 200 bps as against 175 bps
cut in repo rate between January 2015 and December 2016.

3. COMPANY ANALYSIS

3.1 COMPANY PROFILE:

HDFC Bank Ltd is a major Indian financial services company based in Mumbai. The Bank is
a publicly held banking company engaged in providing a wide range of banking and financial
services including commercial banking and treasury operations. It is the largest bank in India
by market capitalization. It was ranked 69th in 2016 BrandZTM Top 100 Most Valuable Global
Brands. HDFC Bank is India’s second-largest private sector lender by assets.

3.2 BACKGROUND:
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 RBI’s liberalisation 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.
3.3 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.

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3.4 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. HDFC Bank’s business philosophy
is based on five core values: Operational Excellence, Customer Focus, Product Leadership,
People and Sustainability.
3.5 DISTRIBUTION NETWORK:
HDFC Bank is headquartered in Mumbai. The Bank’s distribution network was at 4,715
branches in 2,464 cities. All branches are linked on an online real-time basis. The Bank also
has a network of 11,766 ATMs across India. 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.

3.6 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

1. Wholesale banking:
The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, 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 combine
cash management services with vendor and distributor finance for facilitating superior supply
chain management for its corporate customers.

2. 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. To comply with statutory reserve

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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.

3. Retail Banking:
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.

3.7 PERFORMANCE OF HDFC BANK LIMITED:

 During FY2016–17, deposits grew at 17.03 per cent and reached 6.4 Trillion rupees
from 3.1 Trillion rupees
 During FY2016–17, average asset grew at 18.03 per cent and reached 5.4 trillion rupees
 During FY2016–17, Current account and saving account (CASA) stood at 48 percent.
 During FY2016–17, net profit grew at a CAGR of 18.03 per cent and reached 14 billion
rupees.

16000
PAT 14549.66
14000
12296.23
12000
10215.92
10000
8478.4
8000
6726.28
6000

4000

2000

0
Mar'13 Mar'14 Mar'15 Mar'16 Mar'17
PAT 6726.28 8478.4 10215.92 12296.23 14549.66

(Fig. 3.1. Comparison of PAT over last few years)

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  Current account deposits grew by 30.7% over the previous year to reach 1.15 trillion
rupees and savings account deposits by 30.9% over the previous year to reach 1.93
Trillion rupees.
 During FY2016–17, net interest margin (NIM) stood at 4.3 percent.

Kotak
HDFC Mahindra Yes Indusin Axis ICICI
Particulars (Crores) Bank Bank Bank d Bank Bank Bank

Net Advances 554,568 136,355 132,263 11,479 3,73,069. 464,232

Net deposits 643,640 157,426 142,874 126,572 414,379 490,039

Net Profit 14,550 4,940 3,330 2,868 3,679 9,801

Balance Sheet size 863,840 214,590 215,060 178,648 6,01,467.6 771,791

% of CASA 48 44 36 37 51 50

% of NIM 4.3 4.6 3.4 3.99 3.67 3.25

0.93
% of GNPA 1.05 2.25 1.52 5.01 7.89
0.39
% of NNPA 0.33 1.09 0.81 2.11 4.89

No of branches 4,715 1,348 1,000 1,004 3,304 4,850

Market Capitalisation 4,02,000 167,190 72,167 87,976 86,028 1,73,000

(Fig 3.2. comparison of private sector banks)

 Gross non-performing assets (NPA) of the bank as a percentage of total advances stood
at 1.05%.

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 % of CASA
60.00
% of NIM
% of GNPA 51.00 50.40
50.00 48.00 % of NNPA
44.00

40.00 37.00
36.00

30.00

20.00

10.00 7.89
4.30 4.60 3.99 5.01 4.89
3.40 3.70 3.25
2.25 1.52 0.81 2.11
1.05 0.33 1.09 0.93 0.39
0.00
Kotak
Indusind
HDFC Bank Mahindra Yes Bank Axis Bank ICICI Bank
Bank
Bank
% of CASA 48.00 44.00 36.00 37.00 51.00 50.40
% of NIM 4.30 4.60 3.40 3.99 3.70 3.25
% of GNPA 1.05 2.25 1.52 0.93 5.01 7.89
% of NNPA 0.33 1.09 0.81 0.39 2.11 4.89

(Fig 3.3. private banking performance)

3.8 AWARDS:

 HDFC Bank has been adjudged the Best Domestic Bank – India by Asia money at its
India Banking Awards 2017.
 In 2017, HDFC Bank has been awarded Best IT Risk and Cyber Security Initiatives
award at IBA Banking Technology Awards.
 HDFC Bank has won India’s Leading Bank – Private Sector at the Dun & Bradstreet
India’s Leading BFSI Awards 2017.

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 PRODUCTS AND SERVICES AT GLANCE

1. PERSONAL BANKING SERVICES

A. Accounts and Deposits

Savings Account

 Regular Savings Account

 Savings Max Account
 Kids Advantage Account
 Womens Advantage Savings Account

Current Account

 TASC
 Agri
 Professionals
 Hospitals / Nursing Homes
 Ezee
 Merchant Advantage
 Merchant Advantage Plus
 Supreme
 E Commerce

Fixed Deposit

Recurring Deposit

DEMAT Account

Safe Deposit Locker

B. Loans

C. Investment and Insurance

D .Forex Services

E. Payment Services

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F. Access Your Bank -- One View

G. Cards

2. WHOLESALE BANKING SERVICES

3.NRI BANKING SERVICES

4.PROJECT INTRODUCTION:

Banking Industry is backbone of economy and lifeline of Trade & Commerce. The success of
an economy is supported by a strong banking system and similarly the success of the banks is
dependent on the growth & development of the economy. In general, banking is all about to
receive deposits and grant loans within the regulatory purview. Banking sector has witnessed
a consistent growth over the last two decades with adopting sophisticated technology which
had changed the outlook of traditional banking to Digital banking and enabled banks to cross
sell their various offerings to maximize revenue generation.

Banking industry is broadly classified into Retail banking and Wholesale banking. Retail
banking offer services to individual needs such as Savings Account for transaction and placing
deposits, Loan products like Personal Loan, Auto Loan, Housing Loan, Loan against securities.
Wholesale banking deals with SME, Mid-Market corporates and large corporates in the
country. Bank offers transactional banking solution viz Cash Management services & Trade
Services and credit requirement for the business viz working capital, Buyer’s Credit, Letter of
Credit, Bank Guarantee.

In banking industry, wholesale banking contributes nearly 30-35% of the total advances. Banks
are competing in this space to grow their Asset book to maximise their share and revenue.
Banks grow their asset book by participating in the new projects and refinancing the existing
loan from other banks. Acquisition of clients is critical for the bank to grow the business. The
only way is for bank to acquire fresh clients or takeover of client’s facilities from other banks.
The Growth of the bank is dependent on the resilient internal acquisition strategy followed by
them.

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Penetration is employed when the firm wants to endeavour increase sales growth of the existing
product to gain a large proportion of share in market

Market penetration can be a measure of one’s company sales as a percentage of all sales for a
product.
Thus the conviction of connecting the dots to make a complete proper circle of required
products which customer wants and whether that product is beneficial for them
The large chunk of the project has been channelized towards risk associated with each product.
That can give a rough idea about how much a customer is willing to take risk towards each
section of products thus a risk analysis more on a qualitative basis can be undergone
The project includes sale of different products and services of the bank,and providing prompt
services to the walk in customers like bringing awareness among the customers about the digital
platform of banking and its services and finding an innovative way to promote company
products and collection of leads.
A corporate may avail credit facility under sole banking or multiple banking/consortium. In
Sole banking, corporate avails credit facilities from single bank. Further bank will set exposure
limits within the guidelines set by Reserve Bank of India. When a corporate approach to new
bank for funding, bank stipulates routing of all transactions through the bank. The rationale
behind this stipulation is to understand complete supply chain and to monitor the regular pattern
of payable and collection thereby ensuring adequate credit monitoring of the account. Further
bank try to cross sell other product and services to improve stickiness of client with the bank.

When the credit requirements of a borrower are beyond the capacity of a single bank or that
the bank does not want to take more exposure on a particular borrower, then client may resort
to multiple banking. Multiple banking is an arrangement where a borrower avails of finance
independently from more than one bank, under separate loan documents with each bank.
Securities are charged to each bank separately according to funds availed. Also, in such
arrangements, each banker is free to do his own credit assessment and hold security
independent of other bankers.

Further Consortium lending emerged due to consequential increase in demand for funds of
substantial magnitude. In Consortium financing, several banks may agree to jointly supervise
a single borrower with a common appraisal, documentation and follow-up. Sometimes the
participating banks form a new consortium bank that functions by leveraging assets from each
institution and disbands after the project is complete. Under consortium financing, lead bank

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appointed by the member banks will take care of documentation requirements and facilitates
regular meetings with other member banks to discuss on the performance of the borrower and
other related issues to ensure effective monitoring of the account. The system of consortium
lending provides scope and opportunity to share risk amongst banks. This type of lending is
considered to be mutually beneficial to the banks as well as customers.

In case of acquiring new clients, banks focus on finding potential companies by analysing the
Financial performance, Management Profile, Business Model and Industry Risk of the
company along with other parameters taken into consideration while assessing the credit
proposals and thereby shortlist the target companies to meet with the key decision makers of
the respective companies. Further bank has to go through various processes for convincing a
client to avail Credit facilities. As it says, that a success of sale lies in providing the right
solution with a mix of products, to ease pain points for the customer. Similarly bank focuses
on understanding requirements of the customer to offer better services.

In certain cases, corporate might neither require credit facilities nor working capital
requirements due to adequate cash flows, business model. However Bank tries to cross sell
various products and services viz CMS, ACH, UPI and treasury related services to acquire
relationship with the corporate.

5.OBJECTIVES OF THIS PROJECT:

 To identify different channels to reach target customers.

 To build a channel for the sale of products.

 To create a positive among the customers which in return creates a potential lead among

them.

 To acquire the competitor by increasing the customer base.

 To enlist the components of BTL Marketing.

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  To analyse the effectiveness of the BTL marketing in the project.

 To gain practical knowledge about the company. Assessment of various types of

promotional activities.

 To get the feedback and satisfaction level of customers through the questionnaire
responses
 To tap the needs of the customer before the competitor.
 To make the customer aware of internet banking and online transactions.

 To build a platform for the sale of bank products other than walkins.
 To get the feedback and satisfaction level of customers through the questionnaire
responses.
 To make the customer aware of internet banking and online transactions.

 This project intended to study how the HDFC Bank approaches corporates with wide
range of products with differentiating services that can facilitate smooth running of
business operations and transactions.

6. SCOPE OF THIS PROJECT:

Undertaking this project would help in understanding how much amount of loans can bank
sanction based on financial credibility of the company along with other parameters taken into
consideration while approving the loans and also how bank would determines the interest rates
for different types of financing like short term loan, long term loan, letter of credit and so on.

This project helps in understanding how banks able to analyse management risk in the business
entity and assessing requirements to provide solution based on the risk profile of the customer.

This project helps in understanding the different types of loans that banks offer to different
customers and also latest technology advancements adopted in facilitating smooth running of
business transactions of customers at HFDC Bank Limited.

This project would help in understanding how wholesale banking system works as well as
different kind of services offered like maintaining current account, escrow account of the
companies.

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Further strong credit appraisal system which played a key role in maintaining NNPA of HDFC
Bank Ltd. at 0.33 percent can be studied. The effect of financial reforms taken by Government
of India like Demonetization, Implementations of Goods and Service Tax as well as effect of
consolidation in banking sector on HDFC bank can be studied.

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.

7. LIMITATIONS OF THIS PROJECT:

 The study was restricted only to HDFC Bank and hence may not be applicable to all banks.
 This project restricted to Retail banking and hence may not applicable to Wholesale
banking.
 The project was completed in three months’ time so the time available was limited.
 High corporate targets and imbalance between the operational and sales activities.

 Cultural or language barriers

 In the review process we face some abuses from different customers who are against to the
HDFC Bank
 As SIP is our first experience of the corporate field, it becomes very difficult for me to
move out all alone in the market without prior exposure.
 As our SIP is supposed to start from the month end of Feb and continue till May which is
the hottest month of the year is the biggest limitation of our SIP. It is very difficult to move
in the market during such scorching heat, At the time of BTL activities.

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8. METHODOLOGY:

 Analysing the primary and secondary data of the company.

 Analysing the strategies developed by the company that helps in increasing the business.

 Developing a communication strategy to deal with the customers

 Visiting the enterprises to create leads and generate business with them.

 Cold calling i.e.getting into the stores of different businesses and deatil observation of their
experience on different bank products. Setting up norms and process for the channels and
platform for sales generation..

 Using digital platform to meet the targets of the corporate banks.

 Maximizing the business revenues.
 Customer interactions and their feedback on the activity of the product performance in
terms of returns.

FLOWCHART OF SEGMENTATION MODEL:

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MAJOR SEGMENTATION STRATEGIES

1.Behavioral Segmentation

2.Benefit Segmentation

3.Demographic Segmentation

4.Geographic Segmentation

5.Psychographic Segmentation

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Below the Line Marketing

Below-the-line activity in marketing generally refers to marketing practices making use of

forms of promotion that do not involve the use of mass media, where, in a firm’s use of an
advertising agency, there is usually no commission charged by the advertising agency, and thus
the expense typically appears ‘below-the-line’ on the ad agency’s bill to the firm.

Below-theline marketing activity can be contrasted with ‘above-the-line’ marketing activity,

which typically is that where an ad agency would charge a firm a commission based on
advertising placements in mass media such as television, newspaper, and radio. Below-the-line
marketing activity is also considered by some of its adopters to encounter a less cluttered
communications environment in efforts to communicate with a target market in contrast to the
relatively more cluttered environment of mass media advertising

ANALYSING A CUSTOMER/BUSINESS

1. PROBING OF COMPANIES:
In order to find/ search for a company, bank uses various kinds of sources which can be
classified in two ways:
a) Internal Sources: Internal sources play a dominant role in finding companies.
Banks will follow supply chain strategy to know top 10 clients of their existing
clients and try to connect with them to explore possible opportunities to create asset
relations. Bank approaches the clients through various ways. For an instance an
existing client gets raw materials form another client who is not banking with same
bank then respective bank will approach supplier with various offer like vendor
discounting/bill discounting to that client.

b) External Sources: External credit rating agencies will review financial credit
facilities availing and rate the companies based on their financial credibility. Credit
ratings gives opinion on probability of default on the rated obligation, forward
looking and Specific to the obligation being rated. But they are not comment on the
issuer's general performance or indication of the potential price of the issuers' bonds

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 or equity shares. Credit rating of a company is an assessment of the creditworthiness
of a borrower in general terms or with respect to a particular debt or financial
obligation. A credit rating can be assigned to any entity that seeks to borrow money

– an individual, corporation, state or provincial authority, or sovereign government.

Credit assessment and evaluation for companies and governments is generally done
by a credit rating agency. These rating agencies are paid by the entity that is seeking
a credit rating for itself or for one of its debt issues. Credit rating is relative measure
of default probability, not a guarantee against default: A credit rating does NOT
indicate that payment of interest and principal is completely certain. A credit rating
indicates the issuer’s ability and willingness to pay interest and principal on time.

(Source: Investopedia.com Fig 1.2. credit rating and their interpretation)

2. SCOPE OF A CUSTOMER:
Banks will shortlist the target base by choosing customer’s external credit rating, exposure with
the existing banks, industry risk involved in sanctioning credit facilities, Management risk
involved in the business entity, opportunities to cross sell various products and services.

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Further once customer evinces interested in HDFC Bank by providing adequate data for
assessing credit facilities, sis Audited Financials of company, sensitivity analysis and
profitability analysis. Sensitivity analysis is the analysis of the effect of different external
variables on a company financials. It considers potential changes to top line sales, EBDIT
margins, interest rates, costs, and/or other variables and measures how this will affect the return
on the investment. Thus allows managers to anticipate a range of possible outcomes where
uncertainty about the factors involved makes it impossible to predict the exact outcome.
Determination of financial status by following:
Financial statement analysis:
Financial statement analysis is the process of reviewing and evaluating a company's financial
statements, thereby gaining an understanding of the financial health of the company and
enabling more effective decision-making. It includes statement from balance sheet and profit
& loss statements as well as cash flow statements. It consists of following

I. Ratio Analysis:
Ratio analysis is such a significant technique for financial analysis. It indicates relation of two
mathematical expressions and the relationship between two or more things. Financial ratio is a
ratio of selected values on an enterprise's financial statement. There are many standard ratios
used to evaluate the overall financial condition of a corporation or other organization. Financial
analysts use financial ratios to compare the strengths and weaknesses in various companies.
Values used in calculating financial ratios are taken from balance sheet, income statement and
the cash flow of company. Financial ratio analysis helps us to understand how profitable a
business is, based on liquidity position, enough money to pay debts. Shareholders and Investors
would also concerned on consistent growth and possibly increase their stake based on such
findings.
Financial ratios helps to evaluate the performance of one firm, its current ratios will be
compared with its past ratios. When financial ratios over a period of time are compared, it is
called time series or trend analysis. It gives an indication of changes and reflects whether the
firm‘s financial performance has improved or deteriorated or remained the same over that
period of time. It is not the simply changes that has to be determined, but more importantly it
must be recognized that why those ratios have changed. Because those changes might be result
of changes in the accounting polices without material change in the firm‘s performances.

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Another method is to compare ratios of one firm with another firm in the same industry at the
same point in time. This comparison is known as the cross sectional analysis. It might be more
useful to select some competitors which have similar operations and compare their ratios with
the firm‘s. This comparison shows the relative financial position and performance of the firm.
Since it is so easy to find the financial statements of similar firms through publications or
Medias this type of analysis can be performed so easily.
To determine the financial condition and performance of a firm, its ratios may be compared
with average ratios of the industry to which the firm belongs. This method is known as the
industry analysis that helps to ascertain the financial standing and capability of the firm in the
industry to which it belongs. We can use ratio analysis to tell us whether the business
i. is profitable
ii. has a gearing problem or everything is fine
iii. is using its assets efficiently or not
iv. is a candidate for being bought by another company or investor

II. Statement of Cash Flows

A company's statement of cash flows reflects how readily the business can pay its bills, and it
provides important information about a company's sources and uses of cash. However,
measuring cash flow solely from a balance sheet or an income statement is difficult and
potentially misleading. That's because not all revenue is received when a company earns it, and
not all expenses are paid when incurred.

A statement of cash flows, on the other hand, traces where cash came from and where it was
used. The statement also separates cash generated by the normal operations of a company from
that gleaned through other investing and financing activities.
Cash flow from operations starts with net income (from the income statement) and adjusts out
all of the non-cash items. Income and expenses on the income statement are recorded when a
company earns revenue or incurs expenses, not necessarily when cash is received or paid. To
figure out how much cash the company received or spent, net income is adjusted for any sales
or expenditures made on credit and not yet paid with cash. We can use statement of cash flows
to tell us whether the business

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i. has enough money to pay its bills and debts
ii. could be paying its employees higher wages, remuneration or so on
iii. is able to pay its taxes

3. ESTABLISHING CONTACT:
After shortlisting companies based on their financial performance, Banks establishes a contact
through existing clients or reach out the company executives through mail. Sometimes bank’s
Relationship Manager will go directly to the corporate office of the company.

4. FIX AN APPOINTMENT:
After contacting with company, Banks’ Relationship Manager try to fix an appointment with
financial manager of the company to explore possible opportunities to create asset relation.

5. MEETING THE CLIENTS:

Banks’ executives along with Relationship Manager meet with client to know client to asset
relation with existing bank. Single meeting may not give fruitful results because clients doesn’t
want to change their existing setups until they are convinced about the better offerings and
value added solutions.

6. DISCUSSIONS WITH CLIENTS:

After discussion with clients, Decision making team of banks will get brief idea about their
business portfolio and wide range of products offering to their customers. The discussion will
help in establishing comfort with the bank.

7. KNOWING CLIENT REQUIREMENTS:

After multiple meetings with clients, bank will know the client requirements. For an instance
client may require credit facilities for new project and also all banks may not provide every
facilities that client requires.

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8. OFFERING SOLUTIONS:

After knowing the clients requirements, bank will provide an offer based on their requirements.
These offers can be either providing credit facilities or takeover of existing facilities with other
bank.

9. NEGOTIATIONS ABOUT THE OFFER:

After proposal, client will negotiate with the bank about the offer provided. These negotiations
will happen to mutually benefit both Organisations.

10. CLOSE THE DEAL:

After negotiations, both parties will come to common point and close the deal.

9. CUSTOMER RESPONSES FROM COLD CALLINGS

1.YOUSUF TAKERY
Sarath Sir : Good Morning
Yousuf Takery : What about the outward remittance “Sharath”
Sarath Sir : Single payment of 1 Crore cannot be processed ,so we need a declaration from the
customer to process the transaction in split.
Yousuf Takery : Please,drive me according to RBI norms and policies in a legal manner.Why
are you asking me for the declaration after processing the transaction of outward remittance in
sp;it.

2.AMR Constructions
Sarath Sir : Good Afternoon
Customer : Good Afternoon, What about the AXIS bank cheque problem that the customer is
facing in getting the funds into his account.
Sarath Sir : There is a problem from the side of AXIs bank in the clearance department.So, I
will talk to them and get back that cheque that which has stopped from processing and relief
the funds to the customer soon.
HDFC BANK PVT LTD. 33 |
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Why don’t you deposit some more funds in the account sir? And we will open your family
savings account in our branch.

3.TS OVERSEAS CONSULTANTS

Me : We need a declaration saying that we are responsible for the hand written correction
made on the orginal partnership deed.
We need that in the form of RS 100 bond and the account opening will take some time to
process.
Partners : No, we cant do all these, give back our cheque,we will open in other bank.
Me: Sorry Sir,your cheque cannot be returned.
Partners : Then we need the account number within 2 days.
Me : We will try to get it soon sir.

4.AIRWINGS TRAVELS AND FOREX

Customer : Our owner is out of country, so we need some days for getting the signature and
detail information of the account opening documents.
Me : The account once opened or started the process of opening should be done successfully
within 10-15 days from start date.
Customer : We will let you know once the owner comes to INDIA from SAUDIARABIA
Me : Sure, Thank you sir.

5. RAVESTAGE SOLUTIONS
Current Account Opening
6. ZUERST MEDICARE AND GENERAL TRADING
7. MAHEEM GROUP
8. AIRLINK TOURS AND TRAVELS
9. RACE RISHI ACADEMY OF COMPETITIVE
10. ASHWIN TOURS AND TRAVELS
11. CELKON CARE
12.GLOBAL TECHNOLOGIES
13.SYSPRO TECHNOLOGIES
14. CHIMANLAL INDUSTRIES

HDFC BANK PVT LTD. 34 |

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15. SAHU MOTORS
16. OBIND ELECTRONICS
17. ROYAL FRUIT MARKET
18. BALAJI PLY WOOD
19. STANDARD ELECTRICAL STORES
20. RAVINDRA WINES
21. DENIM
22. FAMOUS (RAYMOND)
23. MJ CLASSIC FURNITURE
24.ASUZ NATIONAL BUSINESS ZONE
25. MOHAMMEDA GHEE SWEET
26. ASHOKA WHEELS
27. KULSUM DESIGNERS
28. PHARMACY WORLD
29. RAINBOW SANITATION
30.DWARAKA HONDA
31. AIREMAX
32. TRANSLINES,MOOSAPET
33. SREENIDHI INTERNATIONAL SCHOOL,LIC COLONY
34. J.C. ENTERPRISES,AMEERPET
35. MINERVA SWEETS,TOLLICHOWKI
36. JASPER INDUSTRIES,BASHEERBAGH
37. USHODAYA HOSPITALS,MEHDIPATNAM
38. EMINENT CONSTRUCTION,MASAB TANK
39. AURORA ,MASAB TANK
40. BISMILLAH JEWELLERS ,MASAB TANK
41. MAGDOOM DRESSES ,CHARMINAR
42. MUGHDANI DRESSES , CHARMINAR
43. AL-AMEEN TEA AND COFFEE,MALLEPALLY
44. AL-AMEEN COFFEE,MALLEPALLY

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45. ALAMIN U LAL HOTELS, MALLEPALLY
46. SAHAYATA TRUST,MASAB TANK
47. J.K. ELECTRICALS,BANJARA HILLS,ROAD NO.1
48. PIONEER ELECTRICALS
49. MALABAR GOLD AND DIAMONDS
50.ALUMNIS IN ISB HYDERABAD
*TEJA
*PADMA
*REVATHI
51.RANDOM CUSTOMERS ACROSS THE AREA

CUSTOMER IDS OF WALK IN CUSTOMERS DEALT :

1. 32841692
2. 74517883
3. 67488702
4. 63781844
5. 67809551
6. 113424764
7. 20012855
8. 52667443
9. 43279353
10. 9900055
11. 3272651
12. 36653419
13. 4672899
14. 63781844
15. 60220274
16. 33114341

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17. 33759289
18. 69248406
19. 27273000
20. 111356259
21. 113552374
22. 113424672
23. 60913196
24. 51099535
25. 23819198
26. 50100194864535
27. 61687124
28. 641155651
29. 113424655
30. 112316917
31. 50996351
32. 111952452
33. 60787236
34. 113424653

8. CASE BASED APPROACH of Business Loan of ABC PVT LTD.

8.1 INTRODUCTION
ABC Private Limited is engaged in manufacturing perfumes and its related plastic components.
The company offers cosmetic products such as rose perfume, sandal perfumes, soaps, eye liner,
powders, bath soaps, herbal cosmetics, face cream, and lipsticks. The products are in turn
distributed and sold across 60 countries viz USA, Mexico, Poland and South Africa through a
robust sales & Distribution network of the parent company. Company has its manufacturing
unit and export oriented business unit located in India. The company is ISO 10001:2008
certified. ABC Private Limited was incorporated in 2003.

8.2 BROAD INDUSTRY CATEGORY

INDUSTRY SEGMENT

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 FMCG Personal care/Skin care

8.3 BACKGROUND

ABC Private Limited is part of ABC Group, based out of USA was established in 1970. The
Group comprises of 15+ companies involved primarily in developing, manufacturing and
distributing fragrance care, color care, skin care, bath care and other personal care products for
mass market segment. The Group's state-of-the-art manufacturing units are located across the
world.

ABC Private Limited is having a state of the art manufacturing facility, where the availability
of skilled power is abundant. It manufactures wide range of products of various fragrances and
supplies 100% to its parent company located in USA. Company has a good backward
integration with own machine make important components of fragrance bottles, such as plastic
cap. The factory employs 400 workers and 100 staffs on a 12 hour shift which can produce 1
million bottles. The present capacity utilization is 80%. Company is also getting the orders
from Indian companies for contract manufacturing.

EXISTING FACILITIES

PARTICULARS AMOUNT SECURITY TENOR

Export Credit Rs. 100 Charge on Current Assets and Movable
120 days
Limits Million Fixed Assets

8.4 INITIAL APPROACH

Company enjoys working capital limits of Rs. 100 Mn. from existing bank. Bank approached
company to explore opportunities to create relationship with takeover of credit facilities from
existing bank/provide additional working capital requirement under Multiple Banking
Arrangement to avail services offered by bank. Thereby gradually reduce the utilization of
working capital limits from current bank and finally takeover of entire limits from existing
bank. Further company shared information about planning to expand the operations by putting
up another unit. Company will use this facility to diversify into other product offering like
Body spray, Cosmetics and Toiletries

.
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8.5 PERFORMANCE OF THE COMPANY
FINANCIALS:

(Millions) 2015 2016

Net Sales 540 702
OPBDIT 19.7 36.05
PAT 8.29 11.94
Tangible net worth 129.54 141.49
Long term debt 32.78 32.66
Short term debt 93.44 100.7
Inventory (days) 118.92 153.57
Debtors (days) 55.94 65.57
Current Ratio 1.02 1.11
Net Working Capital 5.73 30.31
(Fig: 4.1 Financials of the Company)
COMMENTS:

a.) OPBDIT level is consistently growing over the last 3 years.

b.) Operating Profit margin is consistently growing for last 3 years and projected strong growth
in operating profit margin for next financial year.

c.) Company generating profits for last two years and showing consistent growth.

d.) From financials, it is evident that the profitability has been deployed back in the business
only.

e.) The Short Term loans & Advances of 5.64 Million as on 31 st March 2016.

8.6 DISCUSSION POINTS

a.) Top 10 Clients of the company.

b.) Need to setup a plant in India even though they are not selling directly to end consumer and
more over group is having global presence.

c.) Inventory conversion cycle and credit receivables period.

d.) Account Receivables period given for top clients.

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8.7 OFFER

Company presently enjoys working capital limits of Rs. 100 Mn. Based on company’s profile,
Bank has offered working capital limits of Rs. 60 Mn. for tenor of 120 days under Multiple
Banking Arrangement whereas existing bank provides the same working capital limits of Rs.
100 Million. Hence, Total working capital requirements limits will raise to Rs. 160 Mn. and
Charges on Current Assets and Movable Fixed Assets taken as security under pari passu basis.

8.9 CONCLUSION

Bank considers various opportunities to generate revenues viz maintaining salary account,
current account cross sell their product and services apart from income earned on working
capital and to take part in the future projects. Since company is subsidiary of the parent
company ABC Group, which has global presence across the world and Managing Director of
the company who possesses ample experience in this industry and currently working as CEO
of the ABC group. Industry risk on that particular segment also considered. Based on these
various risk factors and opportunities, Bank sanctioned Export credit facilities because of
having scope to monitor the end-to-end transactions.
From this 80 days experience in a corporate, I got a good exposure about what really the
corporate life is about. It’s waking along with targets and mind stresses every morning. The
person who can manage these target and stress are shining in those fields. I personally think
that marketing is not everyone’s cup of tea but if one set his target high and continuously strive
towards that, nothing is impossible. The only thing required in our field is the right attitude or
a positive attitude towards attaining one’s goal. The main aim of this project is to build
ability of self-analysis in the context of entrepreneurship and imbibe the ability of finding
attractive market that can reached economically. And help the nation in bringing out more
entrepreneurs that can help in the growth of Indian economy.

10. FINDINGS OF THE PROJECT:

 Acquiring of new clients in banking sector, is not single step process but it depends on
efforts made in analysing risk involved in providing credit facilities.

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 Relationship manager of the bank, who possesses ample experience to address the needs of
corporate clients plays key role in acquiring corporates and to analyse risk involved in
providing facilities.
 As success of marketing lies in choosing right customer to the right product which not only
useful for marketing but also helps financial institutions for providing customised credit
facilities. For instance, an export company may require credit facilities so banks
approaching such company may offer customized loan products viz export credit since
nature of business is into exports.
 The rapid pace of digitisation has helped banking sector to bring in paperless sanctions of
credit facilities to ensure operational efficiency, transparency and reduce the time taken for
releasing facilities and operating activities.
 However, Major departments of the bank viz Treasury, cash management services,
payment collections, Trade finance & digital banking facilitate corporate client on day to
day business operations & transaction thereby improving stickiness of client with the bank.
 Effective credit monitoring system of the bank instrumental in maintaining strong asset
quality and healthy portfolio for the bank.
 Even though Indian banking sector has been witnessing rise in NPAs over the last few
years, HDFC Bank Ltd. has managed to keep GNPA at 1.05% through efficient credit
appraisal system while sanctioning and monitoring credit facilities when compared to
22.3% of NPAs and restructured assets in entire banking sector as per RBI reports.
 Whenever new economic reforms like Demonetisation, GST, Insolvency and Bankruptcy
code are introduced, the effect on each company and Industry would be analysed by
progressive meeting with executives of the company to explore opportunities to get
involved and facilitate in banking transactions.

11. CONCLUSION:

The implication from this study is that Segamentation and Penetration helps in understanding
how banks are able to acquire new clients to increase asset size. In acquiring a client, bank
takes feedback about that client from peers, competitors and stake holders to know
Creditworthiness of client which would help to analyse risk involved in providing facilities. As
single meeting wouldn’t give a holistic view of the client’s business performance, there would
be multiple meetings with clients to know their requirements and serving them in better way.

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These meetings would give deep insights about the future business opportunities and enhance
the relationship with bank. Sometimes clients doesn’t have any interest in changing their credit
facilities from existing bank, In such cases bank would approach either to create multiple
banking/consortium or explore opportunities for funding new projects. In this way, both client
and bank would enjoy mutual benefits. After sanctioning facilities, multiple meetings with
executives of the company to enhance limits based on changing dynamics of the business along
with quarterly and annually reviews about the health of the asset helps to prevent conversion
of NPA. Customers will prefer better products and services irrespective of who offers it. Banks
keep up to pace in catching with the pace of technology change, so that they are able to offer
the products and service that is new in the market and gain a larger pie in the market share.
HDFC Bank with its eminent services and sophisticated technology could able to attract large
number of corporate clients.

12. BIBILOGRAPHY

12.1 BOOKS REFERRED:

 Dr. Ramamaurthy N (2013) “Corporate Banking (A guide for Novices)”

 Chauhan & Choudhary (2015), “Internet Banking Challenges and Opportunities in
Indian Context”

12.2 JOURNALS REFERRED:

 Dr. SMITA MAZUMDAR and Dr. JAI DEO SHARMA, 2017. Indian Banking
Sector in Transition. The Management Accountant, Vol (52), pp. 40-68

12.3 WEBSITES REFERRED:

 www.mca.gov.in/
 crisil.com/ratings/credit-ratings-list.jsp
 m.rbi.org.in
 www.moneycontrol.com
 www.economictimes.com

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