hdfc bank

A

PROJECT REPORT

ON

“ANALYSIS OF CUSTOMER RELATIONSHIP MANAGEMENT IN PRIVATE SECTOR BANK”

A STUDY CONDUCTED AT HDFC BANK, LINK ROAD, BILASPUR (C.G)

IN PARTIAL FULFILMENT OF THE COURSE

MASTERS IN MARKETING MANAGEMENT (MMM)

UNIVERSITY OF PUNE

(2009-2011)

SUBMITTED BY

ABDUL SUHAIB KHAN

INDIRA INSTITUTE OF MANAGEMENT

PUNE

BATCH 2009 - 11

ACKNOWLEDGEMENT

I would like to offer our sincere thanks to the HDFC Bank Group, to pursue my summer training with their company successfully. The opportunity I got to work here in the MARKETING Department.

I would also like to thank Mr. SHAKIL KHAN for being the driving force and for encouraging us to give our best throughout the task. Clearly this would not have been possible in the absence of his expertise and guidance.

We would like to express our gratitude to the faculty of IIMP, and Prof. Smitha pappachan whose timely updates and support played a role in the Successful completion of our training.

Last but not the least I would like to thank the entire staff of HDFC Bank, for making me feel so comfortable in the organization and making me work to my fullest potential.

Sincere thanks to the above.

Abdul Suhaib Khan

DECLARATION

I ABDUL SUHAIB KHAN, student of INDIRA INSTITUTE OF MANAGEMENT, PUNE [MMM course (2009 – 2011 session)] declared that this project report is outcome of the original research work done by me. The data is collected from both the primary as well as secondary sources, analysis of which produces this valuable report.

(ABDUL SUHAIB KHAN)

EXECUTIVE SUMMARY:

Private banking is a concept which is fast emerging in the world of banking where changes have become a necessity in order for banks to survive in this competitive environment vis-à-vis not only from the public and private sector banks but also from the foreign banks.

Customer Relationship Management or CRM is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It's a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success.

The title of the project is “Analysis of customer relationship management in Pvt. Sector bank (HDFC Bank)”. The approach of this project was to understand the measures adopted by HDFC Bank to promote fair relationship between the bank and customers, helping the customer in understanding product and services, how to increase the value of existing customer and know their level of satisfaction and ultimately increases the bank profitability.

OBJECTIVES OF STUDY

1. Study of products and services offered to retail customers.

2. Ascertaining the behavior and perception of the existing customers towards products/ services in banking.

3. Study the value of existing customers and reduced cost associated with servicing them and ways to increasing the overall efficiency of bank performance.

4. Identifying the most profitable and least profitable customer (Banding)

5. To identify and study the various ways of ensuring customer satisfaction adopted by HDFC bank.

6. Receiving the customer feedback that leads to new and improved product and services.

RESEARCH METHODOLOGY:

Research Instrument – Structured Questionnaire

Research Approach – Descriptive Research was used for the research.

Sampling Method – Random Sampling

Sampling Universe – Sample universe for research are the customer of Bilaspur city.

Sample unit: The respondents comprises of Govt. Employees, Self Employed, professionals, housewives etc

Sample Frame – The sample frame is taken as the existing customer of HDFC Bank.

Sample Size – Sample size under study was taken 100 customers.

DATA COLLECTION: Primary data – through personal interview and questionnaire

Secondary Data – company data base, RBI site and through internet.

KEY FINDINGS:

Bank has shown better utilization of cash balance of customer by cross selling other products.

Officials employed find themselves in much burden as there are very

less number of sales executives.

Most of the people have a positive attitude about the investment products.

Most of the respondents are having more than two accounts and holds

more than two products with HDFC Bank.

The registers and files are maintained on a daily basis and in a organized manner.

KEY CONCLUSION:

Customer Relationships can be achieved by the whole company working together to give customers what they really want. It’s is a business strategy to create and sustain long-term, profitable customer relationships.

CRM lead to better understanding of all aspects of customer behaviour; regarding issues and benefits offered by a company and helps differentiate itself from others.

In bank loyalty programs should be taken place to reward the customers for maintaining a product with them

Bank are visited by two people most profitable and least profitable customers.

For knowing the profitability of customer banding was studied to identifying most profitable and least profitable customers.

LIMITATIONS OF THE STUDY:

During the project following limitations where known:

The area was large and it was not possible to deal with each and every customers.

Time was the major constraint as I have only two months and the area is very vast .Even though I have put up the best of my efforts to cover all the areas given to me.

Many of the customers where not cooperative when they are asked give few minutes.

As HDFC Bank is a big brand, many times the answers of the respondent may be affected by his good or bad experience about some other product.

To convince the people for a proper interviewing process is also difficult.

Compilation of data on competitor analysis was difficult due to non- availability of correct information.

INDEX

1) Introduction

2) Industry/sector Profile

3) Company Profile & Product Profile

4) Review of literature

5) Objectives and scope of project

6) Research Methodology

7) Data Analysis and Interpretation

8) Observation and Findings

9) Conclusions

10) Suggestions / Recommendation

11) References

Table of Contents

Serial no. Particulars Page no.

1. Introduction

2. Industry/Sector profile

3. Company and product profile

About HDFC bank

Mission

Awards & Achievement

Balance sheet

4. Review of literature

5. Objective and scope of project

Statement of problem

6.

Research Methodology

1. Justification statement of problem & objective

2. Methods & procedure used

3. Data collection technique

4. Description of technique

5. Sample

7.

Data interpretation & analysis

1.analysis of data

2.table & interpretation

3.Graph Conclusion.

8. Observation and findings

9. Conclusions.

10. Suggestions/recommendations.

11. References

CHAPTER 1

INTRODUCTION

INTRODUCTION

During the research work done for HDFC Bank in Bilaspur(C.G) area. The project starts with studying the products and services offered by HDFC Bank. The objective is to study the value of existing customer for bank by regularly contacting on phone, taking appointments and meeting them with this the customer problem and quires are known and to make sure they are satisfied with the bank services with this ultimately leads to satisfaction.

This study helps in identifying the problem areas and thereby overcoming this problem will help the company to enhance customer’s connections with the company. This research was undertaken for a period of 2 months during which a majority of customers are taken as a part of project by interviewing them.

The next part of the project is identifying the most profitable and least profitable customers which depend on how a customer generates profit in terms of all the expenses incurred on the part of the bank and all the revenues is earned from the product. Basically dealing with the non profitable customer and converting them into profitable band at this customer relationship is very important. Their staffs are busy working to acquiring new customer and paying a less attention on old customers.

The customer access screens ( FINWARE ) used by Relationship manager which include the complete information about account holder and details of customer which is helpful for him to contact on phone and profitability code is mentioned ( BANDING ), so employees can know whether they are dealing with a 5, 4, 3, 2, or 1 band of customers. And while cross selling the products to customer profitability band is very important.

These products are selected by certain formulas that determine what bank products the customer currently uses, and what his current balances would indicate that he might be eligible for and want to use next. The software also suggests the appropriate rates for loans (personal loan, two wheeler loan, auto loan etc.) on the current market, eligibility for credit card and its limit and the customer’s profitability level.

BANDING

HDFC Bank classify their customers under five different types of band of customer which is helpful for Relationship Manager in identifying to which type of customer he is dealing this process is called is banding it is a continuous process.

This is helpful for Relationship Manager or Personal Banker in differentiating customer as which one is most profitable and least profitable customers. This also shows customer loyalty with bank in terms of his transactions and available balance. If a customer is loyal toward bank then only bank can generate revenue thus Banding is done on the basis of revenues generated from the customers. The first two bands deal with non profitable customers. And the next three bands deal with the Profitable ones.

The profits from the customers are considered on a yearly basis.

Bands Profit

1. Profit<0 2. Profit=0 3. Profit>1k

4. 2.5k>Profit<5k

5. Profit>5k

Thus from the above diagram it is clear that Band 1 customers are those who generate negative profits for the bank. Band 2 customers are those who generate zero profit for the bank*. Customers generating profit more than one thousand rupees and less than two thousand five hundred rupees annually are kept under Band 3. The customers who fall under the profit class of more than two thousand five hundred rupees and less than five thousand rupees annually are under Band 4. And the highest band is of those customers who generate profits more than five thousand rupees annually.

HDFC BANK TRIES TO MAINTAIN RELATIONSHIP WITH CUSTOMER IN FOLLOWING WAYS:

HDFC BANK GIVIES INFORMATION:

You can get information on interest rates, common fees and charges through any one of the following: Looking at the notices in our branches; phoning our branches or help-lines; Looking on our website; Asking our help desk; Referring to the service guide.

HDFC BANK HELPS YOU TO UNDERSTAND HOW THERE FINANCIAL PRODUCTS AND SERVICES WORK BY:

HDFC Bank provides you information about them in any one or more of the following languages: Hindi, English or the appropriate local language.

Ensuring that there advertising and promotional literature is clear and not misleading.

Ensuring that you are given clear information about their products and services, the terms and conditions and the interest rates/service charges, which apply to them.

HDFC Bank provides you information on what are the benefits to you, How you can avail of the benefits, and whom you can contact for

addressing you queries. Advise you what information/documentation we need from you

HDFC BANK HELP YOU USE YOUR ACCOUNT OR SERVICE BY:

Provides you a Relationship manager or personal banker which helps you in assisting your transactions.

Providing you regular appropriate updates.

Keeping you informed about changes in the interest rates, charges or terms and conditions.

BEFORE YOU BECOME A CUSTOMER HDFC BANK WILL:

Give you clear information explaining the key features of the services and products you tell us you are interested in;

Give you information on any type of products and services which we offer and that may suit your needs;

Tell you if we offer products and services in more than one and tell you how to use them;

Tell you what information we need from you to prove your identity and address

DEAL QUICKLY AND EFFECTIVELY WITH YOUR QUERIES AND COMPLAINTS BY:

Offering channels for you to route your queries. Listening to you patiently. Accepting our mistakes, if any. Correcting mistakes/ implementing changes to address your queries. Communicating our response to you promptly. Telling you how to take your complaint forward if you are not

satisfied with the response.

HDFC BANK EFFORT TO ENSURE SATISFACTION OF CUSTOMERS:

Promote good and fair banking practices by setting minimum standards in dealing with you

Increase transparency so that you can have a better understanding of what you can reasonably expect of the services;

Encourage market forces, through competition, to achieve higher operating standards;

Assisting a personal banker to customers who can look after his accounts and give timely updates.

Promote a fair and friendly relationship between you and your bank;

Promote confidence in the banking system.

CHAPTER2

INDUSTRY/SECTOR PROFILE

INDUSTRY/SECTOR PROFILE

BANKING

Definition of banking

Banking in a traditional sense is the business of accepting deposits money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer.

Dr. Paget in Law of Banking states, “No one and no body, corporate or otherwise, can be a banker who does not:

i. Conduct Current Accountsii. Pays cheques drawn on himselfiii. Collects cheques for his customers

Banking in India is fairly mature in terms of supply, product range and reach-even through the reach in rural India still remain a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have a clean, strong and transparent balance sheet relative to other banks in comparable economics in its region. The autonomous body (self-governing) has minimal pressure from the government. The stated policy of the bank on Indian rupees is to manage volatility but without any fixed exchange rate and this has mostly been true.

With the growth in Indian economy expected to be strong for quite some time especially in its service sector the demand for banking services, especially retail banking, mortgages and investment services are expected to be great.

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

About RESERVE BANK OF INDIA

A central bank, reserve bank or monetary authority is the entity responsible for the monetary policy of a country or a group of member of state. It prime responsibility is to maintain the stability of national currency and money supply, but more active duties includes controlling subsidize-loan, interest rates and acting as a lender or last resort to the banking sector during financial crises. It could also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.

The RBI handles the cash reserves of other banks in the country. It acts as a "Bank of Banks". It makes the transactions or transfers of money and payments occurring between the banks much easier

FUNCTION OF RBI

The functions are classified into three heads, viz.,

A) Traditional functions

B) Promotional functions and

C) Supervisory functions. Let’s see the detailed account in these heads.,

A) Traditional functions

1. Monopoly of currency notes issue2.Agent and advisor to the Government3.Custodian of the foreign exchange reserves4. Maintaining the external value of domestic currency5.Ensures the internal value of the currency6.Publishes the Economic statistical data7.Fight against economic crisis and ensure stability of Indian economy.8. The banker to the Government of India and the State governments. It manages the public debt. It undertakes to accept money on behalf of the Government and make payment on its behalf etc.

B) Promotional functions

1. Provides refinance for export promotion.2. Expansion of the facilities for the provision of the agricultural credit through NABARD.3. Extension of the facilities for the small scale industries.4. Helping the Co-operative sectors.5. Prescribe the minimum statutory requirement.6. Innovating the new banking business transactions.

C) Supervisory functions

1. Granting license to Banks.2.Inspects and makes enquiry or determine position in respect of matters under various sections of RBI and Banking regulations3.Periodical review of the work of the commercial banks4.Giving instruction to commercial banks5.Control the non-banking finance corporation6.Ensuring the health of financial system through on-site and off-site

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks

Private sector Banks

Foreign Banks in India

Regional Rural Bank

(27) (29) (31) (133)

Nationalized Bank

Other Public Sector Banks

(IDBI)

SBI and its Associates

Old Private Banks

New Private Banks

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks (55)

Scheduled State Cooperative Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there are 29 private sector banks in the banking sector: comprising of mixture of old Private sector banks and some new private sector banks.

These new banks have brought in state-of-the-art technology and aggressively marketed their products. The Public sector banks are facing a stiff competition from the new private sector banks. The banks which have been setup in the 1990s under the guidelines of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS.

PUBLIC SECTOR BANKS

Public sector banks are those in which the Government of India or the RBI is a majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India are those of the public sector banks.

The following are the list of Public Sector Banks in India

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

State Bank of India o State Bank of Bikaner & Jaipur o State Bank of Hyderabad o State Bank of Indore o State Bank of Mysore o State Bank of Saurastra o State Bank of Travancore

PRIVATE SECTOR BANKS:

Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in

India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India.The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account.

List of Private Banks in India

Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank

FOREIGN BANKS

The operations of foreign banks, though similar to that of other commercial Indian banks, are mainly confined to metropolitan areas. Foray of foreign

banks depends on reciprocity, economic and political bilateral relations. An inter-departmental committee has been set up to endorse applications for entry and expansion. Foreign banks, in the wake of the liberalization era, are looking to expand and diversify. Some of the leading foreign banks that operate in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation, Bank of America, Deutsche Bank, Development Bank of Singapore and Banque National De Paris.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

Major Banks in India

ABN-AMRO Bank Indian Overseas Bank

Abu Dhabi Commercial Bank

American Express Bank

Andhra Bank

Allahabad Bank

Bank of Baroda

Bank of India

Bank of Maharastra

Bank of Punjab

Bank of Rajasthan

Canara Bank

Central Bank of India

Centurion Bank

China Trust Commercial Bank

Citi Bank

Corporation Bank

Dena Bank

Deutsche Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

HDFC Bank

HSBC ICICI Bank

IDBI Bank

Indian Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab & Sind Bank

South Indian Bank

Standard Chartered Bank

State Bank of India (SBI)

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Saurastra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

United Bank Of India

UTI Bank

CHAPTER3

COMPANY PROFILE:-

Chapter3 COMPANY PROFILE:-

About HDFC Bank

Bank is one amongst the firsts of the new generation, tech-savvy commercial banks of India, was set up in January 1995, after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. The bank’s competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 15 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

HDFC Bank was the first bank in India to launch an International Debit Cardin association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the merchant acquiring business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

HDFC Bank Limited (the Bank) operates in three segments: retail banking, wholesale banking and treasury services.

RETAIL BANKING SERVICES:

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

The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

WHOLESALE BANKING SERVICES:

The Bank s target market ranges from large manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc.

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

TREASURY:

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

The Bank offers derivative products to its customers, who use them to hedge their market risks, within the framework of regulations as may apply from time to time. The Bank also deals in derivatives on its own account and also for the purpose of its own balance sheet risk management. The operations of HDFC Securities Ltd. have been classified under the retail banking segment.

BRANCH NETWORK:

Currently as on March 31, 2010, the Bank’s distribution network was at 1,725 branches and 4,232 ATMs in 779 cities as against 1,412 branches and 3,295 ATMs in 528 cities as of March 31, 2009. The Bank’s total customer base touched 19 million

as of March 31, 2010. The bank offers many innovative products & services to individuals, corporate, trusts, governments, partnerships, financial institutions, mutual funds, insurance companies.It is a path breaker in the Indian banking sector.

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 so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank.

Our business strategy emphasizes the following:

Increase our market share in India’s 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 scaleable 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.

HDFC Bank business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry.

BALANCE SHEET: As of March 31, 2010

The Bank’s total balance sheet size increased by 21.4% from Rs.183, 271 crores as of March 31, 2009 to Rs. 222,459 crores as of March 31, 2010.

Total gross advances as of March 31, 2010 were Rs. 127,262 crores, an increase of 27.0% over March 31, 2009.

Total deposits were at Rs. 167,404crores, an increase of 17.2% over March 31, 2009. Savings account deposits grew 42.9% over the previous year to reach Rs. 49,877 crores, while current account deposits at Rs. 37,227 crores, registered a growth of 30.9% over the same period.

As a result, the core CASA ratio was at 50% of total deposits as at March 31, 2010 as compared to 45% as of March 31, 2009

PROFIT & LOSS ACCOUNT: Year ended March 31, 2010

For the year ended March 31, 2010, the Bank earned total income of Rs. 19,980.5 crores.

Net revenues (net interest income plus other income) for the year ended March 31, 2010 were Rs.12, 194.2 crores, up by 13.8% over Rs. 10,711.8 crores for the year ended March 31, 2009.

The Bank’s net profit for year ended March 31, 2010 was Rs. 2,948.7 crores, up 31.3%, over the year ended March 31, 2009.

Consolidated net profit for the Bank increased by 33.6% to Rs. 3,003.7 crores for the year ended March 31, 2010.

Awards and Achievements - Banking Services

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

It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. Some appreciations received by HDFC Bank:

In 2010

Euromoney Private Banking and Wealth Management Poll 2010-1) Best Local Bank in India (second year in a row).   2) Best Private Banking Services overall (moved up from No. 2 last year)

ACI Excellence Award 2010-Highly commended-Asia Pacific HDFC Bank

Avaya global connect 2010-Customer Responsiveness Award - Banking & Financial Services category

Financial Express - Ernst Young Survey 2009-10-Best New Private Sector Bank

The Asset Triple A Awards- Best Cash Management Bank in India.

Global Finance Award- Best Trade Finance Provider in India for 2010

Business Today Best Employer Survey-Listed in top 10 Best Employers in the country

HDFC Bank has received many awards and accolades between 2007 and 2009. The list goes like this:

Dun & Bradstreet – American Express Corporate Best Bank Award 2007

Nasscom IT User Award 2008

Asian Banker Best Retail Bank in India Award 2009

Fe Best Bank Awards 2009

UTI MF-CNBC TV18 Financial Advisor Awards 2009

Euro money Awards 2009

Asia Money 2009 Awards

IBA Banking Technology Awards 2009

IDRBT Banking Technology Excellence Award 2008

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

PRODUCT PROFILE:-

PRODUCT PROFILE:-

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

HDFC Bank brings banking at your doorstep. Select any of our deposit products and provide your details online and our representative will contact you for Account Opening.

The products of the company are categorized into various sections which are as follows:

Accounts and deposits.

Cards.

Loans.

Investments and Insurance.

Forex and payment services.

Customer center.

PRODUCTS AND SERVICES AT A GLANCE

PERSONAL BANKING

ACCOUNTS & DEPOSITS LOANS INVESTMENTS & INSURANCE

- Regular Savings Account- Savings Plus Account- Savings Max Account- Senior Citizens Account- No Frills Account- Salary Account- Kid's Advantage Account- Pension Saving Bank Account- Family Savings Account- Plus Current Account- Trade Current Account- Premium Current Account- Regular Current Account- Apex Current Account- Max Current Account- Merchant Current Account- Regular Fixed Deposit-Recurring Deposits.- Super Saver Account- Sweep-in Account- HDFC Bank Imperia/Classic/Preferred Banking

- Personal Loans- Home Loans- Two Wheeler Loans- New Car Loans- Used Car Loans- Overdraft against Car- Express Loans- Loan against Securities- Loan against Property-Loan against Rental Receivables-Health care finance-Tractor Loans- Commercial Vehicle Finance- Working Capital Finance- Construction Equipment Finance

- Mutual Funds- Tax Planning- Insurance- Bonds- Financial Planning- Knowledge Centre- Equities & Derivatives- Mudra Gold Bar- Mudra silver Bar

CARDS

- Credit cards- Debit cards- Prepaid cards

FOREX SERVICES

- Product & Services- Trade services- Forex service Branch Locator- Forex Limits- Forex Plus Card- RBI Guidelines

PAYMENT SERVICES

- Net Safe- Prepaid Refill- Bill Pay- Direct Pay- Visa Money Transfer- E-Monies Electronic Funds Transfer- Excise & Service Tax Payment

ACCESS YOUR ACCOUNT THROUGH

-NetBanking-Credit card Online-OneView-InstaAlert-MobileBanking-ATM-Phone Banking-Email Statements-Branch Network

SAVINGS ACCOUNTS

During our project course of time some savings and current account where studied and sell of accounts where done in detail. Therefore HDFC Bank offers you a power packed Savings Account with a host of convenient features and banking channels to transact through. So now you can bank at your convenience, without the stress of waiting in queues like.

Regular saving accountMax saving accountClassic saving accountPreferred saving account

REGULAR SAVING ACCOUNT

An easy-to-operate savings account that allows you to issue cheques, drawDemand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking.A minimum deposit of Rs. 10,000/- is required to open an account and thereafter an Average Quarterly Amount of the same amount has to be maintained. If the balance falls below Rs. 10,000/- a service charge of Rs. 750/- will be levied per quarter. Withdraw cash from any of the ATM* centers spread Across the country.

Some key Features and Benefits are as under:

Bank conveniently with facilities like Net Banking and Mobile Banking- check your account balance, pay utility bills or stop cheque payment, through SMS

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account Shop using your International Debit Card that reflects the actual balance in your savings account.

Free Insta Alerts for all account holders for lifetime of the account

Free Payable-at-Par cheque book, without any usage charges upto a limit of Rs.50,000/- per month

Free NetBAnking, PhoneBanking, Email Statement, Quarterly Account statement etc

MAX SAVING ACCOUNT

Presenting Savings Max account, loaded with maximum benefits to make your banking experience a pleasure. By maintaining an average quarterly balance of just Rs. 25,000/- you get a host of premium services from HDFC Bank absolutely free*.

Some key Features and Benefits are as under:

Free unlimited transactions: Cash withdrawal and balance enquiry, at all HDFC Bank ATMs & at all non HDFC Bank domestic ATMs using your HDFC Bank Debit Card

Free Payable-at-Par (PAP) cheque book, without any usage charges up to a limit of Rs. 2 lac per month. And Free Demand Drafts on HDFC Bank locations, up to a limit of Rs. 1 lac per day

Free Gold Debit Card, Free Monthly Statement of Account, Free NetBanking, PhoneBanking & MobileBanking and InstaAlerts for all account holders for lifetime

Account opening charges Rs.399/- only for Demat a/c against Regular pricing at Rs. 799/-

Free National Electronic Fund Transfer facilities and Free monthly statements.

CLASSIC SAVING ACCOUNT

If you want to experience banking beyond the ordinary, our HDFC Bank Classic Program is just for you. Becoming an HDFC Bank Classic customer entitles you to a host of benefits, including a bouquet of preferentially priced products and specialized Investment solutions. To ensure that you make a most of these offering, you are assigned a PERSONAL BANKER who will be the one point contact for all your banking needs.

Some key Features and Benefits are as under:

As a Classic customer, you can avail a Classic Easy Shop Gold Debit card for Free without any annual charge and a limit of Rs. 50,000/- per day on ATM withdrawals

You would be offered a life time free HDFC Bank Platinum Credit Card

No charges for non maintainence of Average quarterly balance

Locker facilities at a 50% discount on annual locker rental rates.

Classic customers are entitled to enjoy reduced pricing on select loan products.

Free Mobile Banking, Net Banking and Phone banking, none of which you have to pay for!

As a Classic customer, you will receive a statement every month. If you transact on non-HDFC Bank ATMs, the charges for balance enquiry and cash withdrawal will be waived. You can avail of this benefit on transactions on any non-HDFC Bank ATM across the country.

If you transact on non-HDFC Bank ATMs, the charges for balance enquiry and cash withdrawal will be waived.

Eligibility criteria is the A minimum Average quarterly balance of Rs. 1lakh in saving bank accounts

CURRENT ACCOUNTS

A current account is a form of deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and shall also be deemed to include other deposit accounts that are neither savings deposit nor term deposits. HDFC bank offers you various types of current account according to your business requirements like.

HDFC Regular Current Account, Premium Current Account, Trade Current Account, Plus Current Account, Max Current Account, Apex Current Account etc and may more

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. .

Regular Current Account requires you to maintain an average quarterly balance of only Rs. 10,000.

Some key Features and Benefits are as under:

Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions

Free Demand Draft and Pay Order above 1lakh and flat charger below a limit with nominal charges

Payable at par cheque book at nominal price

Register for InstaAlert service and receive updates on your account as and when the select transaction happens

HDFC Bank offers you Doorstep Banking* the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

Free payments and collections through NEFT and RTGS collection. RTGS payment @ Rs.25/- per transaction

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking 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.25 Lacs per month.

Some key Features and Benefits are as under:

Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions.

Free Demand Draft and Pay Order above 1lakh and flat charger below a limit with nominal charges

100 cheque leaves free per month

Register for InstaAlert service and receive updates on your account as and when the select transaction happens

Free cash deposits up to Rs.3lakh, deposit of above Rs.3lakh you will be charged @Rs2 per Rs.1000

Free anywhere collection & payment within HDFC Bank branch network up to Rs.25 lacs per month

Free NEFT Transactions and Free RTGS collection

HDFC Bank offers you Doorstep Banking*

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking to access your account.

TRADE CURRENT ACCOUNT

Today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives you the power of inter-city banking with a single account

Trade Current Account requires you to maintain an average quarterly balance of Rs. 40,000.

Some key Features and Benefits are as under:

Free Account to account funds transfer between HDFC Bank accounts.

Free RTGS/NEFT Transactions

Free up to 30 Demand Drafts (DD and pay order per month and can be issued from any HDFC Bank Branch.

Free anywhere collection & payment within HDFC Bank branch network up to Rs.50 lacs per month.

200 "At Par" cheque leaves per free month .

Register for InstaAlert service and receive updates on your account as and when the select transaction happens.

Free cash deposits up to Rs.5lakh, deposit of above Rs.5lakh you will be charged @Rs2 per Rs.1000

HDFC Bank offers you Doorstep Banking*,

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking 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. HDFC Bank Plus 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 collection of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 100 lakhs, bank s priority services have become the benchmark for banking efficiency.Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000

Some key Features and Benefits are as under:

Faster collection of outstation cheques and Free Account to Account funds transfer between HDFC Bank accounts

Free anywhere collection & payment transactions (clearing) within HDFC Bank branch network , up to Rs.100 lacs per month.

Free RTGS/NEFT Transactions

Free up to 50 Demand Drafts (DD and pay order per month and can be issued from any HDFC Bank Branch.

300 "At Par" cheque leaves per free month .

Free cash deposits up to Rs.10lakh, deposit of above Rs.10 lakh you will be charged @Rs2 per Rs.1000

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment

CHAPTER4

REVIEW OF LITERATURE

Review of literature

Market:

Market is a physical place where buyers and sellers gathered to buy and sell goods.

Market is a collection of buyers & sellers who transact over a particular product or services.

Marketing :

Marketing is simply ‘meeting needs profitably’. In other words marketing is an organizational function and a set of process for creating, commutating and delivering value to customers and for managing customer relation ships for beneficial of organization as well as customers.

(Kotler)

Customer:

Who buys a product or services is customer. Customers are very important part of any organization, because customer generates sales and profit for any organization

Bank:

A bank is defined as a commercial institution licensed as a receiver of deposits and giver of loans – both short and long term.

Section 5(1)(B) of banking Regulation Act, 1949 defines banking as, “the accepting for the purpose of lending or investment, of deposits from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise”.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM )

Customer relationship management (CRM) is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. CRM can be adopted to build the long term relationship with the customer’s with regularly contacting them on phone or continuously meeting with the customers.

The adoption of CRM is very necessary for long-term relationship with customers and to create customer loyalty are the most important part of the organization. And ultimately increasing the value of existing customer by cross selling of other product as a result it improves the profitability of organization

What is Customer Relationship Management?

It is a comprehensive approach that provides smooth coordination between sales, customer service, marketing and field support and other customer touching functions. CRM integrates people, process and technology to maximize relationship with all customers including e-customers, distribution channels and suppliers.

It is customer focused business strategy designed to optimize revenue, profitability and customer loyalty. By implementing a CRM strategy, an organization can improve the business processes and technology solutions around selling and marketing and servicing functions across all customer touch.

Value of CRM to business

A CRM strategy is designed to increase revenue and profitability by attracting new customers, growing customer business, increasing customer satisfaction and loyalty, enabling more efficient business processes and utilizing lower cost technologies

The primary goal of CRM is higher revenue, not cutting costs. A CRM solution improves sales and marketing efforts and enables organizations to provide superior service to customers. New customers are gained, and existing customers are retained and buy more in greater quantity. And customer’s

benefits are receiving superior customer service and getting the products and services they want, when they want them.

Why is it necessary?

Many companies are turning to customer relationship management systems to better understand customer wants and needs.

CRM applications often used in combination with data warehousing e-commerce application and call-center, which allows companies to assess information about customers buying history, preferences, complaints and other data so they can better anticipate what customer will want. The goal is to instill greater customer loyalty.

Other benefits include:

The ability to provide faster response to customer inquiries. Increase efficiency through automation. Having a deeper knowledge of customers. Getting more marketing of cross selling opportunities. Identifying the most profitable customers. Receiving the customer feedback that leads to new and improved

product and services. Doing One to One marketing.

Important aspect for customer relationship management

Customer satisfaction:

Customer satisfaction it is equivalent to making sure that product and service performance meets customer expectations. It is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation.

We want to know what our customers Want? We want to know if our customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met the customer’s Approval. We want to know if customers are delighted and willing to comeback, and so on.

Customer loyalty

Customer loyal is when customer is satisfied and wishes to continue relationship with bank in future banks are struggling by developing and measuring customer loyalty programs to influence their behavior and encourage banks' loyalty rewards programs, the programs do exist and typically fall into these categories:

Points programs reward consumers for maintaining a product or service with the bank.

Relationship packages bundle products and services together and provide or special pricing to consumers.

Customer Retention:

Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace

CHAPTER5

SCOPE AND OBJECTIVES OF THE PROJECT

Scope And Objectives of the Project

Scope of study:

The scope of the project was quite wide because in this project an attempt was made to Analysis of Customer Relationship Management in HDFC Bank. Therefore customer relationships management is at the heart of every business success. With CRM, you will easily understand customer requirements, meet those needs effectively, and predict market trends and conditions

A CRM program will allow a business to make new customers, service the customers, increase the value of the customer to the company, retain good customers, and determine which customers can be retained or given a higher level of service and turning them into loyal customers and ultimately increasing the profit for banks.

The customers satisfaction is also know why they preferred HDFC Bank and factor influencing there satisfaction level. As Customer is very important for the company there contribute profitability for company but it is not necessary that every customer generate revenue for company; hence the scope of the project is to identify the non profitable customer i.e. band 1 and band 2 customer to push them into profitable customer. The suggestions was undertaken i.e. cross selling and products were cross sold to them during the course of the project, thus generating revenues for the bank..Therefore customer satisfaction is very necessary as when the customer delighted he switch to more product and services. Thus we can see that the scope of this research was very wide and comprehensive.

Statement of problem.

What is effectiveness of CRM in development of customer satisfaction

The objective of the study is to identify how a customer is profitable to HDFC Bank and to enhance the profitability of Band 1 and 2 customers.

Objectives of study

1. Study of products and services offered to retail customers.

2. Ascertaining the behavior and perception of the existing customers towards products/ services in banking.

3. Study the value of existing customers and reduced cost associated with servicing them and ways to increasing the overall efficiency of bank performance.

4. Identifying the most profitable and least profitable customer (Banding)

5. To identify and study the various ways of ensuring customer satisfaction adopted by HDFC bank.

6. Receiving the customer feedback that leads to new and improved product and services.

CHAPTER6

RESEARCH METHODOLOGY

Research Methodology

Research methodology:

The Research methodology used for the study was very rigorous. Questionnaires were made, interviews with customers were held and various books and websites were consulted for any type of information related to the study. The methodology so applied is briefly discussed below step-by-step.

Therefore Marketing research can be defined as the systematic design, collection, analysis, and reporting of the data and finding relevant to a specific marketing situation facing the company.

Research Design:

Research design is the basic plan which guides the researchers in the collection and analysis of data required for practicing the research product. In fact the research design is the conceptual structure with which research is conducted. It consist the blue print for the collection, measurement and analysis of the data that was followed completing the study to ensure that study is relevant to the problem and will follow the predetermined and set data.

Type of Research Design:

Descriptive research: - Descriptive research provides data about the population or universe being studied. Descriptive Research is used when we are interested in knowing the characteristics of certain groups such as age, sex, educational level, occupation etc. But it can only describe the "who, what, when, where and how" of a situation, not what caused it. Descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible.

DATA COLLECTION TECHNIQUES

PRIMARY SOURCE:

The data required for this stage was regarding the customer relationship and the behavior and perception of the existing customers towards the products/ services provided by the bank and also, to get their satisfaction level toward bank. The data could have been collected by just interviewing the customers but to get a reasonable conclusion and fair accuracy, questionnaires were prepared and customers were interviewed.

Interview was regarding the product usage. Some of the questions asked in the interview were, do you have knowledge about the various products provided by the bank, do you use these products, yes/no then why, do you want any changes in the existing product, will you switch over to another bank for a new products/services which is not yet introduced in HDFC Bank, etc.

The above questions were really helpful in the conclusion part of the study. Some customers were very co-operative but some didn’t even care to listen. Overall, the study was a success as far as primary source was concerned.

SECONDARY SOURCE:

The secondary data was collected with the help of various books, websites, bank journal and employees of the bank. The data collected from the websites and books was good enough to be included in the study analyzed and concluded but the data got from the employees of the bank was most accurate and reliable. Various newspapers, magazines, websites, bank

Journals, etc were checked out for information regarding the latest technological advancement in retail banking in the bank.

The secondary source didn’t provide any personal views of the customers on the technological advancements but were a great help in completing the report and getting the details about the bank history, various business groups of the bank, etc.

SAMPLE DESCRIPTION:

Sample Method: Random sampling was chosen as the sample selection procedure.

Sample universe: My sample universes for research are customer of Bilaspur city.

Sample unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of Govt. Employees, Self Employed, professionals, housewives etc.

Sample Frame: Sample frame of this project is Existing customers of HDFC Bank.

Sample size: The sample size was taken to be 100 customers. Some of the customers were interviewed individually everyday and asked to fill the questionnaires.

Random sampling was the best sample selection procedure as individual customers in the bank were chosen and requested to take out some time for an interview and filling of the questionnaires. A sample size of 100 odd customers was taken so that the conclusion is not biased and great care was taken while getting the questionnaire filled so that the customer does not misunderstand the question and checks the option that is applicable.

On the whole, such methodology was adopted that would give accurate results and the study be a success.

Limitations of the study:

During the project following limitations where known:

The area was large and it was not possible to deal with each and every customers.

Time was the major constraint as I have only two months and the area is very vast even though I have put up the best of my efforts to cover all the areas given to me.

Many of the customers where not cooperative when they are asked give few minutes.

As HDFC Bank is a big brand, many times the answers of the respondent may be affected by his good or bad experience about some other product.

To convince the people for a proper interviewing process is also difficult.

Compilation of data on competitor analysis was difficult due to non- availability of correct information.

CHAPTER7

DATA ANALYSIS AND INTERPRETATION

Data Analysis and Interpretation of Questionnaires

1.The following chart shows that respondents having what type of account in HDFC bank

INTERPRETATION

Above graphical representation shows that 37% of them are having saving account. Least of them are having current account.

2.The following chart shows that the numbers of customers having account for many long time.

INTERPRETATION

Above graphical representation shows that 46% of them are possessing account in HDFC Bank since last 1-2 years.

3. The following chart shows that respondents having what total numbers of account in HDFC bank

INTERPRETATION

Above graphical representation shows that 42% customers are having single accounts.

4. The following chart shows that customer holding total numbers of Products with them of HDFC bank.

INTERPRETATION

Above graphical representation shows that 42% of customer holding more than two products

5 .This charts shows the percent of customer making investments in HDFC Bank and where they have invested their money.

INTERPRETATION

In this chart, it is shown that 36% don’t make any type of investments and 64% of customers make investments in HDFC Bank and out of 64% of customers 40 % do fixed deposits, 37% makes life insurance and 23% invest in mutual funds.

6.Chart shows the percent of customer using credit card of HDFC Bank.

INTERPRETATION

Above graphical representation shows that 37% of customers having Credit cards of HDFC Bank and 63% have not taken any type of Credit card.

7. This chart shows the percent of customer taken loan from HDFC Bank.

INTERPRETATION

Above graphical representation shows that 39% of customers have taken loan form HDFC Bank and 61% have not taken any type of loan.

8. This Question shows that the numbers customers currently using services of HDFC Bank and option where given of multiple choice.

INTERPRETATION

Above graphical representation shows that majority of customer’s using debit card i.e.81, while the numbers of credit card customers are 37, 48 and 69 of customer’s avails the benefit of net banking and Insta alert provided to them and 19 of them are using National Electronic Fund Transfer (NEFT) mainly this type of services current account users are using and 24 number of customer using phone/mobile banking.

9. This question shows percentage of customers why do preferred HDFC Bank for opening of an account with them and the option where given of multiple choice.

INTERPRETATION

Above graphical representation shows that most of them go for brand name i.e. 32%, 11 % opened an account with the reference of existing holder, after that 24% of customers are attracted toward facilities and benefits, 19 % for less processing time because when their funds come to banks transaction is quickly, only 9 % preferred because bank is near their home or offices.

10. This question shows percentage of customers rating the relationship effort adopted by HDFC Bank.

INTERPRETATION

In this chart, it is shown that relationship effort adopted by Bank and customer are asked to rate on Query handling, Information about new services, Promptness and Priority in services. It is seen that in query of handling by officials as 18% of customer marked as excellent, good 28% average 36% , on , Information about new services

11.This question shows the percent of customer satisfaction in using product and services

INTERPRETATION

In this chart, it is shown that majority of customer’s are satisfied with product and services i.e. 37% % customers, 24% of customers are fully satisfied having no issues in operation of products and while 28% are somewhat satisfied the banks and remaining 11% of customer are not satisfied at all the reasons behind this is that the sale executives have given them wrong information about product and services offered.

CHAPTER8FINDINGS

FINDINGS:

All the private and public sector banks are recognizing importance of

the relationship management in their growth and customer retention.

The officials try to make best relation with the customers.

Staff member gives regular updates to their customers and information

of the product and their services.

The registers and files are systematically maintained on a daily basis

and in an organized manner.

Officials employed find themselves in much burden as there are very

less number of sales executives.

Most of the respondents are having more than two accounts and holds

more than two products with HDFC Bank.

Bank has shown better utilization of cash balance of customer by cross

selling other products.

According to respondents feedback it is observed that bank is in need

to increase their branches in Bilaspur region as well as pay concern to

increase their ATM network.

With the help of research it has been found that most of them prefer

brand name and service facilities and some of them are influenced by

existing customer

Greater retention of customers is being needed as they are offering

various products and services. This enables a great understanding of

what customers may expect from the bank and what to offer to them.

This leads to defining where each customer is in his relationship with

the bank so that cross-selling can be done

CHAPTER9

CONCLUSION

CONCLUSION:

HDFC Bank has a strong brand name in the Bilaspur city market. The people of Bilaspur city are good in investment part and most of them go for Fixed Deposits and Life Insurance rather investing in Mutual fund products.

Thus there is a need to convert the people in mutual fund and credit cards for increasing profitability of bank.

HDFC Bank has always sought profitable customers and generated profit from them and taken steps by converting the non profitable customer to profitable customers.

Customers can be pulled into profitability band when the customer is satisfied with the product and services which he is using.

Customer satisfaction plays an important role as customers are satisfied they will look for some other product.

At this state Relationship Manager is very important who can suggest the customer which product to use with reference to his need.

They must maintain mutual relationship between the relationship manager and customer.

CRM lead to better understanding of all aspects of customer behaviour regarding issues and benefits offered by a company and helps differentiate itself from others.

The project was full of learning and experiments and provides me with a great knowledge about banking sector. I have interacted with a lot of people personally during these two months. A study of Company profile and Product profile was done before starting my project which helps me a lot while interacting with the people. If the interviewer is not having adequate knowledge of the company and product profile then he will not be able to get the desired information from the respondent. During the course of time, I tried to get all the objective of the project to be fulfilled.

CHAPTER10

SUGGESTIONS AND RECOMMENDATIONS

SUGGESTIONS AND RECOMMENDATIONS

Continuous interaction with the customers is necessary in order to continue with relationship Building activities for long term prospective.

The bank should come up with more branches in other locations in Bilaspur city.

The bank should open more ATM networks.

To increase the number of customers HDFC Bank should also offer some products for small business. (For example- Zero balance savings and current account.)

It is seen that most of the customers are not aware of products and services offered by HDFC Bank. Thus HDFC Bank should pay some attention on Advertisement.

HDFC Bank has very less sales force than other banks, this is a reason that customers have lack of attention towards HDFC Bank. This part can be improved by increasing the sales force.

Account opening process in HDFC Bank is comparatively complicated and Time-consuming in case of current accounts HDFC Bank should consider time factor as it is very important.

CHAPTER11

REFRENCES

REFERENCES

HDFC Bank Ltd.’s prospectus, publications etc.

Marketing Management by Philip Kotler, Thirteenth Edition

Research Methodology - Methods and Techniques by C.R.Kothari.

BIBLIOGRAPHY

htpp://www.google.com

http:// www.hdfcbank.com

http:// www.hdfc.com

http://www.rbi.com

CHAPTER12

ANNEXURE

Questionnaire

Personal Detail:-

Name: ……………………………………………………………...

Occupation: …………………………………………………………

Mobile / Phone No: …………………………………………………

Address:….…………………………………………………………

Family background of the customer

a) How many members do you have in your family? _ _ _ _ _b) How many of them are earning? _ _ _ _ _

1) What type of account do you have in HDFC bank?

a) Savings account b) Current account

c) Both Savings and Current d) other (please specify) _ _ _ _ _

2) Since how long you are having account with our bank?

a) 0 – 1 year b) 1 – 2 years

c) 2 – 3 years d) 3 years and above

3) How many accounts you and your family have in HDFC bank?

a) 1 account b) 2 accounts

c) 2 – 4 accounts d) 4 and above accounts

4) How many HDFC products do you hold?

a) 1 product b) 2 products

c) 3 products d) 4 and above products

5) Have you made any type of investment with HDFC Bank?

a) Yes b) No

If yes than in…

Fixed deposit a) Yes b) No Life insurance a) Yes b) No mutual fund a) Yes b) No other please specify_ _ _ _ _ _ _ _ _ _

6) Do you hold any type of credit card?

a) Yes b) No

7) Have you taken any type of loan from HDFC bank?

a) Yes b) No

8) Tick mark on services you are currently using from HDFC bank?

a) Debit Card b) Credit Card

c) Net banking d) Phone banking

e) Insta Alert f) NEFT

9) Why you have preferred this particular bank for opening an account? (You may tick multiple)

a) Due to brand name b) Due to existing account holder

c) Less documentation d) Less processing time

e) Near to your place f) For features and benefits

10) Please rate the following relationship efforts of HDFC Bank

(1: Excellent, 2: Good, 3: Average, 4: Poor, 5: Very poor)

Query handling by officials. _______________

Information about new service_______________

Promptness in service _______________

Priority in service ________________

11) What is your level of satisfaction with HDFC Bank?

a) Fully Satisfied b) Satisfied

c) Somewhat Satisfied d) Not satisfied at all

14) Any suggestions or recommendations to HDFC bank?

…………………………………………………………… ……………………………………………………………