Chapter - 1

Company
Introduction

INTRODUCTION
1. INTRODUCTION TO BANKING INDUSTRY
1.1 BANK
Finance is the life blood of trade, commerce and industry. Now-a-days, bank money acts as the
backbone of modern business. Development of any country mainly depends upon the banking system.
The term bank is derived from the French word Banco which means a Bench or Money exchange
table.
A bank is a financial institution which deals with deposits and advances and other related services. It
receives money from those who want to save in the form of deposits and it lends money to those who
need it.
Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on
customer's order."

1.1.1Features of a Bank:
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a company which is in the
business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually repayable on demand
or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a
custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.

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5. Payment and Withdrawal

A bank provides easy payment and withdrawal facility to its customers in the form of cheques and
drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts, etc.
6. Agency and Utility Services
A bank provides various banking facilities to its customers. They include general utility services and
agency services.
7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
8. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from
those who have surplus money and give the same to those who are in need of money.
9. Banking Business
A bank's main activity should be to do business of banking which should not be subsidiary to any other
business.
10. Name Identity
A bank should always add the word "bank" to its name to enable people to know that it is a bank and
that it is dealing in money.

1.2INTRODUCTION TO HDFC BANK

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1.2.1 HDFC BANK

HDFC Bank Limited is a major Indian financial services company based in India, incorporated in
August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was
promoted by the Housing Development Finance Corporation, a premier housing finance company (set
up in 1977) of India. HDFC Bank has 1,725 branches and over 5,000 ATMs, in 780 cities in India, and
all branches of the bank are linked on an online real-time basis.
The headquarters of HDFC Bank is in Mumbai, India. And its area served is worldwide.

Organizational Goals
HDFCs main goals are to:
a) Develop close relationships with individual households
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions.
d) Provide consistently high returns to shareholders.
e) To grow through diversification by leveraging off the Existing client

1.2.2 Subsidiaries of HDFC Bank consist of:

1. HDFC Bank
2. HDFC Mutual Fund
3. HDFC Standard Life Insurance Company
4. HDFC Realty
5. HDFC Chubb General Insurance Company Limited.
6. Credit Information Bureau (India) Limited
7. Other Companies Co Promoted by HDFC
a)
b)
c)
d)
e)
f)

HDFC Trustee Company Ltd.

GRUH Finance Ltd
HDFC Developers Ltd.
HDFC Venture Capital Ltd.
HDFC Securities Ltd
HDFC Holding Ltd.

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~5~

HDFC BANK LIMITED Background of HDFC Bank

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 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, strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.

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BUSSINESS 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.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB

WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally
approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per
the scheme of amalgamation, shareholders of CBOP received 1 share of HDFC bank for every 29
shares of CBOP.
The merged entity will have a strong deposit base of around Rs1, 22,000 crore and net advances of
around Rs89, 000 crore. The balance sheet size of the combined entity would be over Rs1, 63,000
crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network,
geographic

reach,

and

customer

base,

and

bigger

pool

of

skilled

manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private

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sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd.,
effective February 26, 2000. This was the first merger of two private banks in the New Generation
Private Sector Banks. 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.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. As on December 31, 2009, the Bank has a network of 1725
branches in 771 cities across India. All branches are linked on an online real-time basis. Customers in
over 500 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 centres, where its corporate
customers are located, as well as the need to build a strong retail customer base for both deposits and
loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has
branches in centres where the NSE / BSE have a strong and active member base.
The Bank also has a network of 3898 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.

MANAGEMENT structure of HDFC Bank

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Name
C M Vasudev
Harish Engineer
Renu Karnad
Pandit Palande
Bobby Parikh
Aditya Puri
Paresh Sukthankar
Ashim Samanta
Partho Datta
Anami N Roy
Mr. Keki Mistry
Vijay Merchant

Designation
Chairman / Chair Person
Executive Director
Director
Director
Director
Managing Director
Executive Director
Director (up to 18.11.2012)
Director
Director
Director
Director (appointed on 14.03.2013)

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. In terms of core banking software, the
Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware,
both

from

i-flex

Solutions

Ltd.

The

systems

are

open,

scaleable

&web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its key goals and has
already made significant progress in web-enabling its core businesses. In each of its businesses, the
Bank has succeeded in leveraging its market position, expertise and technology to create a competitive
advantage and build market share.

BUSINESS PROFILE
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HDFC Bank caters to a wide range of banking services covering commercial and investment banking
on the wholesale side and transactional / branch banking on the retail side. The bank has three key
business segments:
a) 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 agro-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 corporates including
multinationals, companies from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
b)

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, corporates need more sophisticated risk management information, advice and product
structures. These and fine pricing on various treasury products are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its
deposits in government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

c)

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,
NetBanking and Mobile Banking.

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Mission and Business Strategy

Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international
standards and best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance. The objective is to build sound customer franchises across distinct businesses.
Our business strategy emphasizes the following:

Increase our market share in Indias expanding banking and financial services industry by following a
disciplined growth strategy focusing on quality and not on quantity and delivering high quality

customer service.
Leverage our technology platform and open scale able systems to deliver more products to more

customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk management.
Develop innovative products and services that attract our targeted customers and address inefficiencies

in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.
Focus on high earnings growth with low volatility.

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PRODUCTS AND SERVICES

1 ) P E R S O N A L B A N K I N G S E R VI C E S
A ) Ac c o u n t s & D e p o s i t s
Savings Account

Loan against Securities

Regular Savings Account

Loan against Property

Savings plus Account

Commercial Vehicle Finance

Savings Max Account

Working Capital Finance

Senior Citizens Account

Construction Equipment Finance

Payroll Salary Account

Regular Salary Account

C) Investments & Insurance

Kid's Advantage Account

Mutual Funds

Pension Saving Bank Account

Insurance

Family Savings Account

Bonds
Financial Planning

Current Account

Knowledge Centre

Plus Current Account

Equities & Derivatives

Trade Current Account

Premium Current Account
Regular Current Account

D) Payment Services

Apex Current Account

Net Safe

Max Current Account

Prepaid Refill
Bill Pay

B) Loans

Direct Pay

Personal Loans

Visa Money Transfer

Home Loans

E-Monies Electronic Funds Transfer

Two Wheeler Loans

Excise & Service Tax Payment

New Car Loans

Overdraft against C
Page | 12

E) Access Your Bank - One View

ATM

Instar Alerts

Phone Banking

Mobile Banking
2) WHOLESALE BANKING SERVICES
Funded Services

Corporate Salary a/c

Non Funded Services

Tax Collection

Value Added Services

Financial Institutions

Internet Banking

Mutual Funds

Clearing Sub-Membership

Stock Brokers

RTGS sub membership

Insurance Companies

Fund Transfer

Commodities Business

ATM Tie-ups

Trusts

3) NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

4) PAYMENT SERVICES
Net Safe

Bill Pay

Insta Pay

Direct Pay

Visa Money

Online Donation

Page | 13

SWOT
1.2.4 SWOT ANALYSIS
STRENGTH:
1) Right strategy for the right products.
2) Superior customer service vs. competitors.
3) Great brand image.
4) High degree of customer satisfaction.

WEAKNESSES:
1) Some gaps in range for certain sectors.
2) Customer service staff needs training.
3) Sectorial growth is constrained by low unemployment levels and competition for staff.

OPPORTUNITIES:
1) Profit margins will be good.
2) Could extend to overseas broadly.
3) Could seek better customer deal.
4) An applied research center to create opportunities for developing techniques to provide valueadded services.

THREATS:
1) Legislation could impact.
2) Great risk involved.
3) Very high competition prevailing in the market.

1.2.5 COMPETITION INFORMATION

HDFC Banks main competitors are as follows:-

1) Axis Bank Ltd.

Axis Bank Limited, formerly UTI Bank, is a financial services firm that had begun operations in
1994, after the Government of India allowed new private banks to be established. The Bank's
Registered Office is at Ahmadabad and its Central Office is located at Mumbai. Axis Bank one of
the largest private sector financer in India for Agriculture loans.

2) ICICI Bank Ltd.

ICICI Bank Limited also known as Industrial Credit and Investment Corporation of India Bank is
the second largest financial service company headquartered at Mumbai, India. The Bank has a
network of 2,533 branches and 6,601 ATMs in India, and has a presence in 19 countries, including
India. ICICI Bank was established in 1994 by ICICI Limited, an Indian financial institution, as a
wholly owned subsidiary.

3) Kotak Mahindra.
The Kotak Mahindra group is a financial organization established in 1985 in India. It was
previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In
February 2003, Kotak Mahindra Finance Ltd was given the license to carry on banking business by
the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian
banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore
in revenue.

4) State Bank of India

State Bank of India (SBI) (is the largest Indian banking and financial services company (by
turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. SBI provides a
range of banking products through its vast network of branches in India and overseas, including
products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches,
has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal
Offices that are located at important cities throughout the country. It also has around 130 branches
overseas.

5) Yes Bank Ltd.

YES Bank Limited is an Indian Bank, engaged in providing a range of banking and financial
services. The Banks business segments include Treasury, Corporate/Wholesale Banking, and
Retail Banking, Corporate Finance, Transaction Banking and a host of other Banking services. It
was founded by Rana Kapoor and his partner (Late) Ashok Kapur, with the duo holding a collective
financial stake of 27.16%.

6) IndusInd Bank
IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and
corporate customers. Its technology platform supports multi-channel delivery capabilities. As on
June 30, 2013, IndusInd Bank had 530 branches, and 1003 ATMs spread across 380 geographical
locations of the country. The Bank also has representative offices in London and Dubai. The Bank
believes in driving its business through technology. It enjoys clearing bank status for both major
stock exchanges - BSE and NSE - and major commodity exchanges in the country, including MCX,
NCDEX, and NMCE. IndusInd Bank on April 1, 2013 was included in the NIFTY 50 benchmark
index. IndusInd Bank also offers DP facilities for stock and commodity segments.

7) ING Vysya
ING Vysya Bank Ltd is a global financial institution of Dutch origin offering banking, investments,
life insurance and retirement services. More than 84,000 ING employees server over 61 million
private, corporate and institutional customers in over 40 countries in Europe, North America, Latin
America, Asia and Australia. We draw on our experience and expertise, our commitment to
excellent service and our global scale to meet the needs of a broad customer base, comprising
individuals, families, small, businesses, large corporations, institutions and governments.

8) J&K
J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the rest
of the country. It is also the only private sector bank designated as RBIs agent for banking
business, and carries out the banking business of the Central Government, besides collecting central
taxes for CBDT. The J&K Bank is rated P1, indicating the highest degree of safety by Standard &
Poor and CRISIL. J&K Bank operates on the principle of 'socially empowering banking' and seeks
to deliver innovative financial solutions for household, small and medium enterprises.

Introduction to the Topic

Meaning of Current Account
Businessmen who have a high number of regular transactions with the bank open current bank
account. It also includes deposits, withdrawals & contra transactions. It is also known as demand
deposit account.

Type of Current Account of HDFC Bank

There are many types of current account of HDFC Bank, namely Regular Current Account,
Premium Current Account, Trade Current Account, Plus Current Account, Max Current Account,
Ultimo Current Account, Supreme Current Account, Apex Current account, Ezee Current Account,
Agri Current Account, Current Account for Hospitals and Nursing Homes, Current Account for
Professionals, Merchant Advantage Plus Current account, Merchant Advantage Current account,
Flexi Current Account, Institutional Current Account and HDFC Bank of Panipat is offering most of
them.

Regular Current Account

A Current account is ideal for carrying out day-to-day business transactions. With the HDFC
Bank Regular Current Account, you can access your account anytime, anywhere, pay using
payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE
NEFT transactions & FREE RTGS collections for faster collections in your account. Regular
Current Account requires you to maintain an average quarterly balance of only Rs. 10,000.

Features and Benefits :

1) Convenient

inter-city

banking :

Free anywhere cheque payment

2) Free payments and collections through NEFT
3) Free RTGS collection. RTGS payment @ Rs.25/- per transaction
4) Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal

charge of Rs.15/- per transactions

5) Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of
Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/6) Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-.
POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/7) Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-.
POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/8) Payable at par cheque book at nominal price.
9) Register for Insta Alert service and receive updates on your account as and when the select
transaction happens - all this without visiting the branch or ATM!
10) HDFC Bank offers you Doorstep Banking, a channel, which is convenient, secure and hasslefree. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to
render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.
11) Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you
check your balance & transaction details, find out the status of your cheque or stop cheque
payment.

Premium Current Account

You can avail benefits of inter-city banking account with Premium Current Account that requires an
average quarterly balance of only Rs. 25,000 offers Payable-At-Par cheque book facility & FREE
inter-city clearing transactions across our network up to Rs.15 Lacks per month. A Current Account
with the benefits of accessing your account from a large network of branches, and through direct
access channels - the phone, mobile, Internet and through the ATM.

Features and Benefits:

1) Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to
2)
3)
4)
5)

Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min Rs.25/Free NEFT Transactions
Free RTGS collection. RTGS payment @ Rs.25/- per transaction.
Free Inter-city Account to accounts funds transfer between HDFC Bank accounts.
Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to

Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/6) Free NEFT Transactions
7) Free RTGS collection. RTGS payment @ Rs.25/- per transaction. Free anywhere collection &
payment within HDFC Bank branch network (except Dahej), up to Rs.15 lacs per month,
incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min Rs.25/8) Free NEFT Transactions
9) Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to
Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min Rs.25/10) Free NEFT Transactions
11) Free RTGS collection. RTGS payment @ Rs.25/- per transaction.
12) Free Inter-city Account to accounts funds transfer between HDFC Bank accounts.
13) Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50, 000/- at flat cost of
Rs.40/-. DDs above Rs.50, 000/- & up to Rs.100, 000/- at nominal cost of Rs.25/- and can be issued
from any HDFC Bank Branch
14) Free Pay Order (PO) above Rs.100, 000/-. Pay Order up to Rs.50, 000/- at flat cost of Rs.40/-. POs
above Rs.50, 000/- & up to Rs.100, 000/- at nominal cost of Rs.25/- and can be issued from any
HDFC Bank Branch.
15) 100 "At Par" cheque leaves free per month
16) Register for Insta Alert service and receive updates on your account as and when the select
transaction happens - all this without visiting the branch or ATM!
17) HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free.
Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render
the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency
18) Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking to access your
account.

Trade Current Account

HDFC Bank Trade Current Account gives you the power of inter-city banking with a single
account. From special cheques that get treated at par with local ones in any city where we have a
branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city
cheque collection (through clearing) of up to Rs. 35 lakhs per month, our priority services have
become the benchmark for banking efficiency. Trade Current Account requires you to maintain an
average quarterly balance of Rs. 40,000.

Features and Benefits:

1)
2)
3)
4)
5)

Free Account to account funds transfer between HDFC Bank accounts.

Free RTGS/NEFT Transactions.
Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch.
Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch.
Free anywhere cheque collection within HDFC Bank branch network (except Dahej), up to Rs.35

lacs per month.

6) Free Outstation Cheque Collection through Speed Clearing (for instruments with value upto Rs. 1
lac).
7) Convenience to withdraw & deposit cash at all our branches
8) 200 "At Par" cheque leaves per free month. Free at par cheque payments across all HDFC Bank
locations for unlimited value.
9) Register for InstaAlert service and receive updates on your account as and when the select
transaction happens - all this without visiting the branch or ATM!
10) HDFC Bank offers you Doorstep Banking, a channel, which is convenient, secure and hassle-free.
11) Enjoy facilities like 24-hour Phone Banking, Net Banking and Insta Query that helps you check
your balance & transaction details; find out the status of your cheque or stop cheque payment.

Plus Current Account

In today's fast-paced world, your business regularly requires you to receive and send funds to
various cities in the country. From special cheques that get treated at par with local ones in any city
where we have a branch, faster collection of outstation cheques (payable at branch locations), free
account to account funds transfer between HDFC Bank accounts to Free inter-city cheque collection
(clearing) of up to 75 lakhs per month. Plus Current Account requires you to maintain an average
quarterly balance of Rs. 100,000.

Features and Benefits:

1)
2)
3)
4)
5)
6)

Free Account to account funds transfer between HDFC Bank accounts

Free payment and collection through RTGS
Free payment and collection using NEFT
Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch
Free up to 50 Pay Orders (PO) per month.
Free anywhere cheque collection (clearing) within HDFC Bank branch network (except Dahej), up

to Rs.75 lacs per month

7) Free Outstation Cheque Collection through Speed Clearing (for instruments with value upto Rs. 1
lac).
8) Convenience to withdraw & deposit cash at all our branches
9) 300 "At Par" cheque leaves free per month. Free at par cheque payments across all HDFC Bank
locations for unlimited value
10) Free Cash Deposit upto Rs.10 lacs per month across all HDFC Bank Branches in your city. What's
more, Cash Deposit at HDFC Bank branches in other cities is also free upto Rs.2 lacs per month.
11) Register for InstaAlert service and receive updates on your account as and when the select
transaction happens - all this without visiting the branch or ATM!
12) HDFC Bank offers you Doorstep Banking, a channel, which is convenient, secure and hassle-free.

Ultima Current Account

Ultima Current Account is the right fit Current Account product for Manufacturers/large
Distributors/Stockiest/Multi specialty Hospitals and Dealers along with Business Banking /
Inventory Funding Customers. Avail a minimum free limit of Rs.2Cr on cash deposit at your Home
Branch Location and a free limit of Rs.50 Lac per month for cash deposit at Non-Home Branch
Location. Also, there is unlimited free local / anywhere cheque collections & payments facility
along with free RTGS/NEFT collections and payments and DD/PO for unlimited value for your
benefit.

Features and Benefits:

1) Free Home Location Cash Deposit limit, which is higher of Rs. 2 Cr per month (100
transactions) or 8 times the AMB maintained in the previous month
2) Non Home Location Cash Deposit of Rs. 50 lac per month (25 transactions). Operational
Limit of Rs. 5 lac for cash deposit at non home branch

3) Free Cash Withdrawal from Home Branch. Free Cash Withdrawal of up to Rs. 75 lac per
month from Non Home Branches
4) 1500 free cheque per month
5) 2000 free bulk transactions per month
6) Unlimited free local / anywhere cheque collections and payments (through both Clearing &
Funds Transfer)
7) Unlimited Free RTGS / NEFT Collections and Payments
8) Unlimited Free DD / MC; Free Correspondent Bank DD of up to Rs. 30 lac per month
9) Free Outstation Cheque Collection at Bank Location / Speed Clearing Transactions
10) Free Debit Cards (all variants) / ATM Card / Bill Pay / Insta Alert; 5 free ATM withdrawals
from non HDFC Bank ATMs per month
11) Bank conveniently with facilities like Net Banking, Phone banking and Mobile Banking
check your account balance, pay utility bills or stop cheque payments all via SMS.
12) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render services like cash and cheque pick-ups and cash deliveries, through a reputed agency.

Supreme Current Account

For large traders operating across the country, this current account can help reduce transaction cost.
Plus free access to one of the most advanced and secure Net Banking and Mobile Banking services.

Features and Benefits:

1) Free cash deposits of up to Rs. 10 lakh per month or 10 times the Average Monthly Balance
(whichever is higher), across all HDFC Bank branches pan India.
2) Lower AQB requirements Semi-Urban and Rural Locations
3) Free account-to-account fund transfers between HDFC Bank accounts
4) Free cheque collections anywhere within the HDFC Bank branch network (except Dahej),
up to Rs. 100 lakhs per month.*
5) 200 free "at par" cheque leaves per month and free at par cheque payments of unlimited
value* across all HDFC Bank locations
6) Free outstation cheque collections through Speed Clearing (for instruments with a value of
up to Rs. 1 lakh)
7) Up to 30 free Demand Drafts (DD) or Pay Orders (PO) per month of any value can be issued
from any HDFC Bank branch.
8) Free RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer)
collections.
9) Convenient cash withdrawals and deposits at all our branches*

10) Free InstaAlert registration for updates on your account as and when transactions happen.
No need to visit a branch or ATM
11) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render services like cash and cheque pick-ups and cash deliveries, through a reputed agency.
12) Bank conveniently with facilities like Net Banking, Phone banking and Mobile Banking
check your account balance, pay utility bills or stop cheque payments all via SMS.

Apex Current account

A high end current account that caters to fast growing, large businesses who can derive maximum
advantage from the host of benefits offered.

Features and Benefits:

1)
2)
3)
4)

Maximum transactional benefits with faster mobilization of funds

Maintain an Average Quarterly Balance of Rs. 10, 00,000.
Access to more than 3000 branches.
Faster collection of outstation cheques through Speed Clearing. Speed clearing is absolutely

free with your Apex Current Account.

5) Free Inter-city cheque collections and payments within HDFC Bank Network for unlimited
value (excluding Dame).
6) Free account to account funds transfers between HDFC Bank accounts.
7) Free payment and collection through RTGS.
8) Free payment and collection using NEFT.
9) Free Demand Drafts & Pay Orders that can be issued from any HDFC Bank branch.
10) Convenience to withdraw and deposit cash at all our branches*.
11) Free cash deposits up to Rs. 120 lakhs per month across all home branches (subject to a
maximum of 60 transactions per month and a per day limit of Rs. 3 lakh on cash deposits at
non-home branches). Cash deposits at HDFC Bank branches in other cities are also free up
to Rs. 30 lakhs per month*.
12) 1000 free payable-at-par cheque leaves per month.
13) Register for InstaAlert and receive updates on your account whenever transactions take
place.
14) Doorstep Banking* for your convenience and security. We will pick-up and deliver cash and
cheques through a reputed agency.

Ezee Current Account

For savvy traders operating across multiple cities, this current account can help reduce transaction
cost. Plus free access to one of the most advanced and secure Net Banking and Mobile Banking
services.

Features and Benefits:

1) Free cash deposits of up to Rs. 4 lakh per month or 6 times the Average Monthly Balance
(whichever is higher), across all HDFC Bank branches pan India
2) Lower AQB requirements Semi-Urban and Rural Locations
3) Free account-to-account fund transfers between HDFC Bank accounts
4) Free cheque collections anywhere within the HDFC Bank branch network (except Dahej),
up to Rs. 25 lakh per month
5) 100 free "at par" cheque leaves per month and free at par cheque payments of unlimited
value* across all HDFC Bank locations
6) Free outstation cheque collections through Speed Clearing (for instruments with a value of
up to Rs. 1 lakh)
7) Up to 20 free Demand Drafts (DD) or Pay Orders (PO) per month of any value can be issued
from any HDFC Bank branch
8) Free RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer)
collections.
9) Convenient cash withdrawals and deposits at all our branches*
10) Free InstaAlert registration for updates on your account as and when transactions happen.
No need to visit a branch or ATM
11) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render services like cash and cheque pick-ups and cash deliveries, through a reputed agency.

Max Current Account

High, dynamic cash deposit limit at any location makes this current account ideal for large
businesses operating across the country

Features and Benefits:

1)
2)
3)
4)

Maximum transactional benefits with faster mobilization of funds

Average Quarterly Balance of Rs. 5,00,000
Access to more than 3000 branches
Faster collection of outstation cheques. No charges for outstation cheque collection at

5)
6)
7)
8)

HDFC Bank Locations.

Free account to account funds transfers between HDFC Bank accounts
Free payment and collection through RTGS and NEFT
Free Demand Drafts & Pay Orders that can be issued from any HDFC Bank branch
Free anywhere cheque collections (through clearing) up to Rs. 3.5 Crores per month within

the HDFC Bank branch network (except Dahej)

9) Faster collection of outstation cheques through Speed Clearing. Speed Clearing is absolutely
free with your Max Current Account
10) 500 free at-par cheque leaves per month
11) Free at-par cheque payments across all HDFC Bank locations for any value*
12) Convenience to withdraw and deposit cash at all HDFC Bank branches*
13) Combined free limit for cash deposit across all HDFC Bank Branches (Home and non-home
locations) of Rs.60 lacs per month (subject to a maximum monthly free limit of Rs.200
Lacs)*.
14) Register for InstaAlerts and receive updates on your account whenever transactions take
place.

Agri Current Account

A current account ideally suited for those in Agriculture related industries where the nature of
business is seasonal.

Features and Benefits:

1) Agri Current Account offers those involved in Trading of agricultural commodities, the
benefit of Half Yearly Average Balance Requirement of Rs. 10000/-. As such, you need not
bother about AQB charges in non-business months.
2) Free unlimited cash withdrawals from Home Branch.
3) 50 free Payableatpar cheque leaves per month.
4) Free Cash Deposits up to Rs.10 lacs per month across all branches in your home city*.

5) Free account to account funds transfers within HDFC bank.

6) Free Local cheque collections and payments.
7) Free payments and collections through NEFT.
8) Free RTGS collections. RTGS payments @ Rs. 25 per transaction.
9) Free payments (clearing transactions) at all HDFC bank locations.
10) Free issuance of Pay Orders(PO)/Demand Drafts(DD) for instruments above the value of
Rs.50,000/- on any HDFC Bank Locations
11) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render the services like Cash & Cheque Pick-ups and Cash Deliveries, through a reputed
agency.
12) Free 24-hour Phone Banking, Net Banking and Mobile Banking so you can check your
balance and transaction details, find out the status of your cheques or stop cheque payments.
13) InstaAlerts registration to get updates on your account as and when transactions happen. No
need to visit a branch or ATM.

Current Account for Hospitals and Nursing Homes

Best suited for Hospitals and Nursing Homes, this current account comes with higher cash deposit
limits.

Features and Benefits:

1) Free Cash Deposit up to Rs. 10 lakhs per month at Home Location.
2) Free account to account funds transfers (local and anywhere) within HDFC bank.
3) Free Local cheque collections and payments.
4) Free payments and collections through NEFT.
5) Free payments and collections through RTGS.
6) Free cheque payments (clearing transactions) at all HDFC bank locations.
7) Free cash withdrawals at Home Branch.
8) 200 free Payableatpar cheque leaves per month.
9) Up to 30 free Pay Orders (POs) per month can be issued from any HDFC bank branch.
10) Up to 30 free Demand Drafts (DDs) per month can be issued from any HDFC bank branch.

11) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render services like Cash & Cheque Pick-ups and Cash Deliveries, through a reputed
agency.
12) Free 24-hour Phone Banking, Net Banking and Mobile Banking so you can check your
balance and transaction details, find out the status of your cheques or stop cheque payments.
13) Register for InstaAlerts to get updates on your account as and when transactions happen. No
visiting a branch or ATM.
14) You can enjoy all the above mentioned facilities and many more by just maintaining an
Average Quarterly Balance (AQB) of Rs. 40,000.

Current Account for Professionals

Doctors, Architects, Chartered Accountants and other professionals can derive maximum value
from this current account.

Features and Benefits:

1) Average Quarterly Balance (AQB) requirement of Rs. 10,000.
2) Free Cash Deposits up to Rs.10 lacs per month across all branches in your home city*
3) Free account to account funds transfers (local and anywhere) within HDFC bank.
4) Free Local cheque collection and payment.
5) Free payments and collections through NEFT.
6) Free payments and collections through RTGS.
7) Free cheque payments (clearing transactions) at all HDFC bank locations.
8) Free cash withdrawals at your home branch.
9) 50 free payable atpar cheque leaves per month.
10) 30 free Pay Orders (PO's) per month can be issued from any HDFC bank branch.
11) 30 free Demand Drafts (DDs) per month can be issued from any HDFC bank branch.
12) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render the services like Cash & Cheque Pick-ups and Cash Deliveries, through a reputed
agency.

13) Free 24-hour Phone Banking, Net Banking and Mobile Banking so you can check your
balance and transaction details, find out the status of your cheques or stop cheque payments.
14) Register for InstaQuery so you get updates on your account as and when transactions
happen. No need to visit a branch or ATM.

Merchant Advantage plus Current account

Best suited for large retail outlets. Cash deposit limits are linked to transaction volumes on card
swipe machines, making this current account cost effective.

Features and Benefits:

1) Enjoy a free monthly Cash Deposit limit* at your home branch that is four times the amount
swiped at the HDFC Bank EDC Machine linked to the Merchant Advantage Plus Current
Account.
2) Get free Regular and Business Debit Cards with your Merchant Advantage plus Current
Account.
3) Pay your vendors and suppliers across the country using multiple remittance options like
local, at-par cheques, Demand Drafts, Pay Orders, RTGS (Real Time Gross Settlement) for
greater convenience and reduced cost.
4) Enjoy 24-hour access to Net Banking, Phone Banking, ATMs and Mobile Banking.
5) Enjoy special privileges with Doorstep Banking services like cash and cheque pick-ups and
6)
7)
8)
9)

cash deliveries at nominal rates.

Get special offers and a host of privileges with your Business Debit Card.
Make your utility bill payments with Bill Pay. This service is absolutely free.
Get free monthly account statements.
Use InstaAlerts and get free balances and transaction alerts on your mobile phone and via
email.

10) Average Minimum Balance requirement is Rs.1, 00,000 per month. Non maintenance
charges for the minimum balance is Rs. 1,000/- per month
11) Bank conveniently with facilities like Net Banking, Phone banking and Mobile Banking
check your account balance, pay utility bills or stop cheque payments all via SMS.

Merchant Advantage Current account

Ideal current account for retail outlets. Cash deposit limits are linked to transaction volumes on card
swipe machines, making this account cost effective.

Features and Benefits:

1) Enjoy a free monthly Cash Deposit limit* at your home branch location that is four times the
amount swiped at the HDFC Bank EDC Machine linked to your Merchant Advantage
Current Account
2) Pay your vendors and suppliers across the country using multiple remittance options like
local, at-par cheques, Demand Drafts, Pay Orders, RTGS (Real Time Gross Settlement) for
greater convenience and reduced cost.
3) Enjoy 24-hour access to your account through Net Banking, Phone Banking, ATMs and
Mobile Banking
4) Enjoy special privileges with Doorstep Banking services like cash and cheque pick-ups and
5)
6)
7)
8)
9)

cash deliveries at nominal rates

Get a free Regular Debit Card, which comes with a host of privileges and benefits
Make your utility bill payments with BillPay. This is absolutely free.
Get free monthly account statements
Use InstaAlerts and get free balance and transaction alerts on your mobile phone and email.
Average Minimum Balance requirement is Rs.25, 000 per month. Non maintenance charges

for the minimum balance is Rs. 300/- per month.

10) Bank conveniently with facilities like Net Banking, Phone banking and Mobile Banking
check your account balance, pay utility bills or stop cheque payments all via SMS.

Flexi Current Account

Ideal for businesses with high seasonal requirement. This current account offers dynamic cash
deposit limits to match business seasonality thereby reducing cost.

Features and Benefits:

1) Enjoy dynamic free limits on Intercity Cheque Collections & Account to Account Funds
Transfer as well as Cash Deposit at home location branches based on the AMB (Average
Monthly Balance) maintained*
2) Take for example your AMB in a particular month is Rs.2,00,000 then your dynamic free
3)
4)
5)
6)
7)
8)
9)

transaction limit for that month will be as per follows:

Transaction Dynamic Free Limits*
Cash deposit at home branch Rs. 20,00,000 (10 times AMB)
Collections and funds transfers anywhere (except Dahej) Rs. 70,00,000 (35 times AMB)
Free RTGS/NEFT Transactions.
40 free Demand Drafts and 40 free Pay Orders issued from any HDFC Bank branch*
Convenience to withdraw and deposit cash at all HDFC Bank branches*.
Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations and

Outstation Cheque Collection at HDFC Bank Locations

10) InstaAlerts receive updates on your account whenever transactions happen.
11) Enjoy 24-hour Phone Banking, Net Banking and InstaQuery that helps you check your
balance and transaction details, find out the status of cheques or stop cheque payments.
12) Doorstep Banking* for your convenience and security. We will arrange for cash and cheque
pick-ups and cash deliveries, through a reputed agency.

Institutional Current Account

Institutional Current Account is a specially designed current account product for Trusts,
Associations, Societies, Clubs, Non-Profit Organizations and Government Department Municipal
Bodies. It has features which are specially designed keeping in mind the requirement of the
Institutional segment.

Features and Benefits:

1) Free local and anywhere fund transfer facility within HDFC Bank.
2) Free local and anywhere cheque payment facility.
3) Free anywhere cheque collection of Rs. 350 lac per month, above which charges at Rs.
1.50/1000 subject to minimum of Rs. 50 per transaction.
4) Free bulk transaction of 300 transactions per month, beyond which Rs. 10 per transaction.
5) Free Outstation cheque collection at Bank location.
6) Minimum free limit for cash deposit at home location is Rs. 50 lac per month or 50
transactions, whichever is lower, beyond which charges at Rs. 4 / 1000.
7) Free cash withdrawal at Home Branch.
8) Free DD/PO payable at Bank location.
9) Free 25 RTGS / NEFT payment transactions per month.
10) Free collections through RTGS / NEFT.
11) Free 500 payable at par cheque leaves per month, beyond which Rs. 2 per cheque leave.
12) Free InstaAlerts registration for updates on your account as and when transactions happen.
No need to visit a branch or ATM.
13) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will arrange to
render services like Cash & Cheque pick-ups and Cash Deliveries, through a reputed
agency.

1.2.3 PROBLEMS OF THE ORGANIZATION

1) Organization is not aware of level of satisfaction of the existing customers.
2) Customers are switching to other banks.
3) In some Current Account there are very low transactions of funds.
4) Organization is not aware that for what reasons customer prefers this bank.
5) Organization wanted to know that customer is aware of the extra services or not.

1 . 3 I n t rod u c t i o n t o c u s t o me r s a t i s f a c t i o n
Customer satisfaction is essential for the survival of any business. The best way to find out whether
customers are satisfied or not is to ask them their opinions about your products and services, what's
most important to them, and then make improvements to those areas that have the biggest impact on
their satisfaction.
Customer satisfaction, however, is when the customer is satisfied with aproduct/service that meets
the customers needs, wants, and expectations.
The level of satisfaction is determined not only by the quality and type of customer
experience but also by the customers expectations. A customer may be defined as someone who
Has a direct relationship with, or is directly affected by your agency and
Receives or relies on one or more of your agencys services or products.

The ultimate aim of measuring customer satisfaction must be to act on the information gathered,
close the gaps between the customers perception of service and the actual service provided.
An organization with a strong customer serviceculture places the customer at the centre of
service design, planning and service delivery.Customer centric organizations will:
Determine the customers expectations when they plan listen to the customer as they
design.
Focus on the delivery of customer service activities value customer feedback whenthey measure
performance.

1.3.1 Measure Customer Satisfaction.

In todays competitive environment, every organization is trying to attract the
customers by assuring highest degree of satisfaction. Satisfied customers are the main
determinants of success or failure of the business of an organization.
Customer satisfaction measurement helps the organization to know:

How well are the products and services able to meetcustomer needs and expectations?
How well is the business process working?
Where to make the changes to improve the performance of product or process?
What is the effect of the changes made for improvements?

1.3.2 Information search

Once the consumer has recognized a problem, they search for information on products and services
that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an
internal (memory) and an external search.
Sources of information include:

Personal sources
Commercial sources
Public sources
Personal experiences

The relevant internal psychological process that is associated with information search is perception.
Perception is defined as the process by which an individual receives, selects, organizes, and
interprets information to create a meaningful picture of the world.

1.3.3 The selective consumer behavior process

Stage Description
-

Selective exposure consumers select which promotional messages they will expose themselves to.
Selective attention consumers select which promotional messages they will pay attention to
Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives

and experiences
Selective retention consumers remember messages that are more meaningful or important to them
The implication of the process helps develop an effective promotional strategy, and select which
sources of information are more effective for the brand.

1.3.4 Information evaluation

At this time the consumer compares the brand and products that are in their evoked set. How can
the marketing organization increase the likelihood that their brand is part of the consumers evoked
set? Consumers evaluate alternatives I terms of the functional and psychological benefits that they
offer. The marketing organization needs to understand what benefits consumers are seeking and
therefore which attributes are most important in terms of making a decision.

Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
Sometimes purchase intention doesnt result in an actual purchase. The marketing organization must
facilitate the consumer to act on their purchase intention. The organization can use variety of
technique to achieve this. The provision of credit or payment terms may encourage purchase, or a
sales promotion such as the opportunity to receive a premium or enter a competition may provide an
incentive to buy now. The relevant internal psychological process that is associated with purchase
decision is integration. Once the integration achieved, the organization can influence the purchase
decisions much more easily.

Post purchase evaluation

It is common for the customers to experience concerns after making a purchase decision. This arises
from a concept that is known as cognitive dissonance. The customer, having bought a product,
may feel that an alternative would have been preferable. In these circumstances that customer will
not repurchase immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the potential
customer that the product will satisfy his or her needs. Then after having made a purchase, the
customer should be encouraged that he or she has made the right decision. It is not affected by
advertisement.

Internal influences
Consumer behavior is influenced by demographics, psychographics, personality, motivation,
knowledge, attitudes, beliefs and feelings. Consumer behavior concern with consumer need
consumer actions in the direction of satisfying needs leads to his behavior of every individual
depend on thinking.

External influences
Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social
class, reference groups, lifestyle, sex and all.

Chapter 2

LITERATURE
REVIEW

3.1 LITERATURE REVIEW

Both the technical and the functional dimensions of service management were shown to correlate
with customer satisfaction. Thus, SMEs seem to evaluate their banking relationship not only on the
basis of the effectiveness and quality of banks' service outcomes but also on the care and manner in

which the bankers deliver services. (Nicolas Lundahl, Fatima Vegholm, Lars Silver, Managing
Service Quality Volume: 19 Issue: 5 2009)
The purpose of this paper is to explore the relationship between corporate social responsibility
(CSR) and customer outcomes. This paper reviews the literature on CSR effects and satisfaction,
noting gaps in the literature. A series of propositions is put forward to guide future research
endeavors. By understanding the likely impact on customer satisfaction of CSR initiatives vis-vis customer-centric initiatives, the academic research community can assist managers to
understand how to best allocate company resources in situations of low customer satisfaction. Such
endeavors are managerially relevant and topical. Researchers seeking to test the propositions put
forward in this paper would be able to gain links with, and possibly attract funding from, banks to
conduct their research. Such endeavors may assist researchers to redefine the stakeholder view by
placing customers at the center of a network of stakeholders. An understanding of how to best
allocate company resources to increase the proportion of satisfied customers will allow bank
marketers to reduce customer churn and hence increase market share and profits. (Lynette M.
McDonald, Sharyn Rundle-Thiele, International Journal of Bank Marketing Volume:
26 Issue: 3 2008)
Ethics have always played a crucial role in the realm of business and commerce. This paper aims to extract
the principle factors of ethical practices to develop a model for competitive advantage in banking and to
show the relation between ethical practice and customer satisfaction and the linked reason for satisfaction as
a tool for competitive advantage. Based on the literature review, ethical issues in banking have been
identified as a foundation work. Then an empirical study using survey research has been completed. The
survey questionnaire has been designed using the literature and pilot survey input. Factor analysis has been
conducted to derive ethical factors for competitive advantage from the survey data, which included 186
responses. ?2 tests were also carried out to show the linked .From the analysis; two principle factors have
been extracted: the cost leveraging factor; and the value leveraging factor which lead to competitive
advantage. Moreover, it also revealed that high ethical practice results in high customer satisfaction and
performance. ( Goitom Tesfom, Nancy J. Birch Journal of Services Marketing Volume: 25 Issue:

5 2011)
This research investigated the relationship between three elements core service quality, relational
service quality- and perceived value and customer satisfaction and future intentions across four
services. The results revealed that core service quality (the promise) and perceived value were the

most important drivers of customer satisfaction with relational service quality (the delivery) a
significant but less important driver. A direct link between customer satisfaction and future
intentions was established. The relative importance of the three drivers of satisfaction varied among
services. Specifically, the importance of core service quality and perceived value was reversed
depending on the service. A major conclusion was that both perceived value and service quality
dimensions should be incorporated into customer satisfaction models to provide a more complete
picture of the drivers of satisfaction. . (Gordon H.G. McDougall, Birch Journal of Services
Marketing Volume: 25 Issue: 5 2011)
Results from independent two-sample t-tests and logistic regression support all five hypotheses, confirming
that young and older bank customers differ significantly in their perception of switching barriers: relational
benefits, switching costs, availability and attractiveness of alternatives, service recovery and the duration of
time they intend to end their relationship with their banks. This study was conducted among employees of
two higher education institutions. Thus, further research needs to test the research results in a diverse
population. Since younger customers are more likely to change their banks easily, if retail banks want to
retain younger customers they need to offer more meaningful incentives to younger customers than they
offer to older customers. In terms of practice the findings in this research highlight the need for managers to
design different switching barrier packages for each customer age group. ( Goitom Tesfom, Nancy J.

Birch Journal of Services Marketing Volume: 25 Issue: 5 2011)

This research investigated the relationship between three elements core service quality, relational
service quality- and perceived value and customer satisfaction and future intentions across four
services. The results revealed that core service quality (the promise) and perceived value were the
most important drivers of customer satisfaction with relational service quality (the delivery) a
significant but less important driver. A direct link between customer satisfaction and future
intentions was established. The relative importance of the three drivers of satisfaction varied among
services. Specifically, the importance of core service quality and perceived value was reversed
depending on the service. A major conclusion was that both perceived value and service quality
dimensions should be incorporated into customer satisfaction models to provide a more complete
picture of the drivers of satisfaction. (Gordon H.G. McDougall, (Professor of Marketing, School
of

Business

and

Economics,

Wilfred

Laurier

University,

Waterloo,

Ontario,

Canada), Terrence Levesque, (Professor of Economics, School of Business and Economics,

Wilfrid Laurier University, Waterloo, Ontario, Canada)

Chapter 2

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
3.1 OBJECTIVES OF THE STUDY
Main objective:

To know the customers satisfaction level and their perception towards of HDFC Bank
services.

Sub objectives:

To know that whether the customer is getting prompt services from the bank or not.
To know the level of interest of customer towards differentproducts of current account.
To know the reasons that attracts the customers to be a part of the bank.
To know the customer awareness regarding the Banks extra services.

3.2 RESEARCH METHODOLOGY

This topic describes the methods of the study of the project. Research is a careful investigation
or inquiry especially through search for new facts in branch of knowledge: market research
specifies the information.Research problem is the one which requires a researcher to find out the
best solution for the g i v e n p r o b l e m t h a t i s t o f i n d o u t t h e c o u r s e o f a c t i o n , t h e
a c t i o n t h e o b j e c t i v e s c a n b e obtained optimally in the context of a given environment.

RESEARCH DESIGN
A framework or blueprint for conducting the research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve research
problems.
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate form for data collection.
Specify the sampling process and sampling size.
Develop a plan of data analysis.

3.3 Data Collection: The data are collected by the primary and secondary sources both to know the customers
satisfaction level towards Current Account of HDFC Bank.
a) Primary sources:The primary sources are those through which data can be collected by first hand. The data has
been collected directly from respondents with the help of questionnaires and analysis was done on
the basis of response received from the customers.The questionnaire has been designed in
such a manner that the consumers satisfaction level can be measured easily.
SECONDARY DATA:Secondary data means data that are already available i.e. they refer the data which have already
been collected and analyzed by someone else. When the researcher utilizes secondary data, than he
has to look into various sources from where he can obtain them, in this case he is certainly not
confronted with the problems that are usually associated with the collection of original data.
Secondary data may either be published data or unpublished data. Usually published data are
available in:
The main source of information for the project was

Weekly magazine;

Internet

Newspapers

RESEARCH PERIOD
Research work is done in 6 weeks from 08 June to 08 July 2013.
AREA OF STUDY
The area of survey is Panipat City.
SAMPLE SIZE
The sample of 100 persons was taken on the basis of convenience.

Tools for analysis

Graphical tools:
Graphical tools used are
Pie chart
Bar diagram

LIMITATIONS
All efforts have been made to present a true picture of the satisfaction level of customers towards current
account of hdfc bank, but there are certain limitations to be kept in mind while going through the report.

1) SAMPLE SIZE:The size of samples greatly affects the survey results, but the size may not be substantial, may be
too short for the conduct of survey in market.

2) TIME:Time constraints were a great barrier as the work was to be completed in a given time period.

3) INFORMATION MAY BE BIASED:Respondents answer may be biased; it may be influenced by other factors such as
advertisements, brand ambassador, family members, relatives etc.

4) LIMITED AREA OF STUDY:The area of study is also greatly affecting the study done;this study is done in limited area only
in Panipat city.

Chapter 4
Data Analysis
And
Interpretation

Data Analysis
Q. 1 CUSTOMER PROFILE OF SURVEYED RESPONDENTS
Table 4.1 Customer Profiles of Surveyed Respondents.

Feedback

No. of Respondents

Percentage

of

Respondents(N=100)
Business
Profession
Services
Total
Source: questionnaire survey

92
8
0
100

92%
8%
0%
100%

Percentage of Respondents
100%

92%

80%
Percentage of
Respondents

60%
40%
20%

8%

0%

0%
Business

Profession

Service

Figure 4.1 OCCUPATIONS OF THE RESPONDENTS

INTERPRETATION:
According to the above analysis it is concluded that out of sample of 100 people, 92% respondents
were businessman, 8% respondents were having profession and 0% respondents were serviceman.

Q. 2 HOW LONG YOU ARE A PART OF HDFC BANK?

Table 4.2

Feedback

No. of Respondents

Percentage

of

Respondents (N=100)
Less Than 6 Months
Less Than 1 Year
Less Than 2 Years
More Than 2 Years
Total

20
37
14
29
100

20%
37%
14%
29%
100%

Percentage of respondents
29%

20%

Less Than 6 Months

Less Than 1 year
Less Than 2 Years

14%

37%

More Than 2 Years

Figure 4.2 Time period of stay in HDFC Bank

INTERPRETATION:
The above diagram shows that 20% respondents were a part of bank for less than 6 months, 37%
respondents were a part of bank for less than 1 year, 14% respondents were a part of bank for less
than 2 years and 29% respondents were a part of bank for more than 2 years.

Q. 3. WHAT ARE THE REASONS THAT ATTRACT YOU TO BE A CUSTOMER OF THE

BANK?

Table 4.3

Feedback

No. of Respondents

Percentage

of

Respondents (N=100)
Its Image
Its Services
Its Product
All Above
Total

40
30
20
10
100

40%
30%
20%
10%
100%

Percentage of respondents
50%
40%
30%
20%
10%
0%
0.5

1.5

2.5

3.5

4.5

Figure 4.3 Major attraction of the bank

INTERPRETATION:
The above diagram shows that 40% respondents were attracted to the bank because of its image,
30% were attracted because of its services, 20% were attracted because of its products, and 10%
were attracted because of all three reasons.

Q.4. ARE YOU SATISFIED WITH THE FEATURES AND BENEFITS OF THE PRODUCTS
OF CURRENT ACCOUNT?

Table 4.4
Feedback

No. of Respondents

Percentage

of

Respondents (N=100)
Strongly Agree
22
Agree
47
Neutral
29
Disagree
2
Strongly Disagree
0
Total
100
Source: questionnaire survey

22%
47%
29%
2%
0%
100%

Percentage of respondents
50%
40%
30%
20%
10%
0%

47%
22%

29%
2%
0%

Percentage Of
Respondents

Figure 4.4 HDFC Bank is providing satisfaction to customers.

INTERPRETATION:
From the above analysis it is concluded that 22% respondents were strongly agree with the
statement , 47% respondents only agree with the statement, 29% respondents were neutral, 2%
respondents were disagree but no respondent was strongly disagree with the above statement.

Q 5. Which product of current account you prefer?

Table 4.5
Feedback
Regular Current Account
Premium Current Account
Trade Current Account

No. of Respondents

Percentage

25
46
15

Respondents(N=100)
25%
46%
15%

of

Plus Current Account

14
Total
100
Source: questionnaire survey

14%
100%

Percentage of Respondents
50%
40%
30%
20%
10%
0%

25%

46%
15%

Percentage Of
Respondents

14%

Figure 4.5 Product of current account you prefer the most.

INTERPRETATION:
From the above analysis it is concluded that most of the respondents preferred Premium Current
Account, 25% respondents preferred Regular Current Account, 15% respondents preferred Trade
Current Account and 14% respondents preferred Plus Current Account.

Q 6. Would you recommend current account of HDFC Bank to others?

Table 4.6
Feedback

No. of Respondents

Percentage
Respondents(N=100)

Definitely
Probably
Might or might not

48
22
27

48%
22%
27%

of

Probably Not
Definitely Not
Total

3
0
100

3%
0%
100%

Percentage of Respondents
48%

50%
40%
30%
20%
10%
0%

22% 27%
3%

0%

Percentage Of
Respondents

Figure 4.6 current account recommendation of HDFC Bank to others

INTERPRETATION:
From the above analysis of given sample of 100 respondents, 48% respondents will definitely
recommend product to others, 22% respondents will probably recommend product to others, 27%
respondents will might or might not recommend, 3% respondents will probably not recommend, but
no respondent will definitely not recommend product to others.

Ques 7.

Do you know about extra services being provided by the bank?

Table 4.7
Feedback

No. of Respondents

Percentage
Respondents(N=100)

Yes
No
Total

100
0
100

100%
0%
100%

of

Source: questionnaire survey

Percentage of Respondents
Yes
No

Figure 4.7 Knowledge about extra services being provided by the bank.
INTERPRETATION:
From the above analysis it is concluded that all respondents know about extra services being
provided by the bank.

Q 8. Which of the following extra services of the bank would you like to go in
for?
Table 4.8
Feedback

No. of Respondents

Percentage
Respondents(N=100)

Phone Banking
ATM
Net Banking

5
40
5

5%
40%
5%

of

Bill Payment
All Above
Total
Source: questionnaire survey

10
40
100

10%
40%
100%

Percentage of Respondents
40%

40%
30%
20%
10%
0%

5%

40%

5%

10%

Percentage Of
Respondents

Figure 4.8 Extra benefits asked by respondents from bank.

INTERPRETATION:
From the above analysis of given sample of 100 respondents , 40% respondents know about ATM
services , 5% respondents know about Phone banking , 5% respondents know about Net Banking,
10% respondents know about Bill Payment and 40% respondents know about all services.

Ques 9.

Do you always get prompt services whenever you visit the branch?

Table 4.9
Feedback

No. of Respondents

Percentage
Respondents(N=100)

Always
30
Often
34
Sometimes
27
Rarely
7
Never
2
Total
100
Prompt services whenever visit to the branch.

30%
34%
27%
7%
2%
100%

of

Percentage of Respondents
40%

30%

Always

34%

Often

27%

Sometimes

30%

Rarely

20%

7%

10%

Never

2%

0%
No. Of Respondents

Figure 4.9
INTERPRETATION:
From the above analysis it is concluded that 30% respondents always get prompt services whenever
they visit the branch, 34% respondents often get prompt services and 27% respondents get
sometimes prompt services and 7% get rarely prompt services whenever they visit the branch and
2% respondents never get prompt services whenever they visit the branch.

Ques10. If another bank provides you same facilities, would you like to switch to
other bank?
Table 4.10
Feedback

No. of Respondents

Percentage of
Respondents(N=100)

No, Not At All

48
I May Consider
22
Yes, Surely
2
Cant Say
28
Total
100
ANALYSIS 11: Preference of other bank over HDFC Bank.

48%
22%
2%
28%
100%

Percentage of Respondents
48%
50%
40%
30%
20%
10%
0%

28%

22%

Percentage Of
Respondents

2%

Figure 4.10
INTERPRETATION:
According to the above analysis, it is concluded that most of the respondents would not like to
switch to other bank and 2% respondents would surely switch to other bank and 28% respondents
cant say anything but 22% respondents may consider other bank.

Q. 11. What is your overall satisfaction rating with HDFC Bank ?

Table 4.11
Feedback

No. of Respondents Percentage

of

Respondents(N=100)
Very Dissatisfied
Somewhat Dissatisfied
Neutral
Somewhat Satisfied
Very Satisfied
Total

0
2
29
47
22
100

0%
2%
29%
47%
22%
100%

ANALYSIS11: Overall satisfaction rating with HDFC Bank current account.

Percentage of Respondents
50%
40%
30%
20%
10%
0%

47%
22%
Percentage Of
Respondents

2%
0%

29%

Figure 4.11
INTERPRETATION:
The above diagram shows that no respondent is very dissatisfied with HDFC Bank, only 2%
respondent is somewhat dissatisfied with the bank, 29% respondents were neutral and 47%
respondents were somewhat satisfied and 22% respondents were very satisfied with the HDFC
Bank.

Chapter 5

Finding
Suggestion
Conclusion
FINDING & LEARNING
1) It is concluded that out of sample of 100 people, 92% respondents were businessman, 8%
respondents were having profession and 0% respondents were serviceman.
2) It is concluded that 20% respondents were a part of bank for less than 6 months, 37%
respondents were a part of bank for less than 1 year, 14% respondents were a part of bank for less
than 2 years and 29% respondents were a part of bank for more than 2 years.
3) It is concluded that 40% respondents were attracted to the bank because of its image, 30% were
attracted because of its services, 20% were attracted because of its products, and 10% were attracted
because of all three reasons.
4) It is concluded that 84% respondents were satisfied with benefits and features of current account
and 16% respondents was not satisfied with benefits and features of current account of the HDFC
Bank.

5) It is concluded that most of the respondents preferred Premium Current Account, 25%
respondents preferred Regular Current Account, 15% respondents preferred Trade Current Account
and 14% respondents preferred Plus Current Account.
6) It is concluded out of given sample of 100 respondents, 48% respondents will definitely
recommend product to others, 22% respondents will probably recommend product to others, 27%
respondents will might or might not recommend, 3% respondents will probably not recommend, but
no respondent will definitely not recommend product to others.
7) It is concluded that all respondents know about extra services being provided by the bank.
8) It is concluded that out of given sample of 100 respondents , 40% respondents use ATM
services , 5% respondents use Phone banking , 5% respondents use Net Banking, 10% respondents
use Bill Payment and 40% respondents use all services.
9) It is concluded that 30% respondents always get prompt services whenever they visit the branch,
34% respondents often get prompt services and 27% respondents get sometimes prompt services
and 7% get rarely prompt services whenever they visit the branch and 2% respondents never get
prompt services whenever they visit the branch.
10) It is concluded that most of the respondents (48%) would not like to switch to other bank and
2% respondents would surely switch to other bank and 28% respondents cant say anything but
22% respondents may consider other bank.
11) It is concluded that no respondent is very dissatisfied with HDFC Bank, only 2% respondent is
somewhat dissatisfied with the bank, 29% respondents were neutral and 47% respondents were
somewhat satisfied and 22% respondents were very satisfied with the HDFC Bank.
OTHER FINDINGS:
1)
2)
3)
4)

Out of 100 respondents, most of the respondents were a part of the bank for less than 1 year.
Most of the respondents were attracted to the bank because of its image.
Most of the respondents were agree that HDFC Bank is providing 100% satisfaction.
Only 84% respondents were satisfied with benefits and features of current account of the HDFC

Bank.
5) Most of the respondents preferred Premium Current Account.
6) 56 respondents were using other bank account than HDFC Bank and 44 respondents were not using
other bank account than HDFC Bank.

7) All customers are aware of extra services offered by HDFC Bank.

8) Most of the respondents are go in for ATM services
9) It is concluded that most of the respondents would not like to switch to other bank.
10) Most of the respondents will definitely recommend product to others.

SUGGESTIONS
1. Bank should try to retain the loyal customers.
2. Bank should try to attract customers by its services and products
3. Bank should try to change the perception of the customers in a positive way that it provides 100%
satisfaction to its customers.
4. The bank should enhance their services according to the needs of the customer so that they can be
5.
6.
7.
8.

satisfied with benefits and features of the current account.

Bank should satisfy the customer in such a way that they could not switch to other bank.
Bank should focus on net banking and phone banking.
The bank should make its procedures less time consuming.
Bank should try to satisfy its customers in overall performance.

CONCLUSION
5.2.1 CONSUMER RESEARCH:
Consumer research deals with consumer and their problem and solution to the problem. This study
helps to know about the consumers need and expectation levels regarding products and
ascertainable levels of consumer satisfaction.

5.2.2 PRODUCT RESEARCH:

Under product research I came to know about the modification which consumers want so the
features and benefits of the product of the current account.

BIBLIOGRAPHY
BOOKS:

Kotler, P., Marketing Management, South Asian Perspective 12th Edition, 2007, Dorling
Kindersley (India) Pvt. Ltd., New Delhi Pp-45-57.
Icmr, Marketing Management Ifcai University, 2004, Banjara Hills, Hyderabad.
Philip Kotler, Marketing Management, 11th Ed, Princeton-Hall India 2003
Marketing Research-Naresh .K.Malhotra
Marketing Management

ICMR Publication

Business Research methods

ICMR Publication

Marketing Management - V.S. Ramaswamy, Research

Operation Research Vittal
Magazine:
Business Today
Business World
WEBSITES:
1. www.hdfcbank.com
2. www.scribed.com`
3. www.google.co.in
4. www.hdfcbank.com/personal/prd_glance.htm
5. http://en.wikipedia.org/wiki/Yes_Bank
6. http://en.wikipedia.org/wiki/State_Bank_of_India
7. http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank
8. http://en.wikipedia.org/wiki/Axis_Bank
9. http://en.wikipedia.org/wiki/ICICI_Bank
10. http://www.hdfcbank.com/personal/accounts/current_accounts/plus_current_account/plus_a
cc.htm
11. http://www.hdfcbank.com/personal/accounts/current_accounts/trade_current_account/trade_
acc.htm
12. http://www.hdfcbank.com/personal/accounts/current_accounts/premium_current_account/pr
emium_acc.htm
13. http://www.hdfcbank.com/personal/accounts/current_accounts/regular_current_account/regu
larcc_acc.htm

QUESTIONNAIRE
PERSONAL INFORMATION:NAME

:-

CONTACT NUMBER

:-

ADDRESS

:-

OCCUPATION

:-

1) Business

2) Profession

3) Service

Q. 1 Customer Profile of Surveyed Respondents

Business
Profession
Services
Total

Ques 2. HOW LONG YOU ARE A PART OF HDFC BANK?

Less than 6 months
Less than 1 year
Less than 2 years
More than 2 years

Ques 3. What are the reasons that attract you to be a customer of the bank?
Its Image
Its Services
Its Products
All Above

Ques4. Are you satisfied with the features and benefits of the products of current account?
Yes

No

Ques 5. Which product of current account you prefer?

Regular Current Account
Premium Current Account
Trade Current Account
Plus Current Account
Ques 6 Would you recommend product of HDFC Bank to others?
Definitely
Probably
Might or might not
Probably Not
Definitely Not
Ques 7.

Do you know about extra services being provided by the bank?

Yes
No
Ques8. Which of the following extra services of the bank would you like to go in for?
Phone Banking
ATM
Net Banking
Bill Payment
All Above

Ques9.

Do you always get prompt services whenever you visit the branch?

Always
Often
Sometimes
Rarely
Never
Ques10. If another bank provides you same facilities, would you like to switch to other bank?
No, not at all
I may consider
Yes, surely
Cant say

Ques11. What is your overall satisfaction rating with HDFC Bank?

Very Dissatisfied
Somewhat Dissatisfied
Neutral
Somewhat Satisfied
Very Satisfied