Project Report On

PROJECT REPORT ON

“SAVING AND CURRENT ACCOUNT”

SubmitteD BY

“ NITIKA AGARWAL”

AT

“INDUSLND BANK”

Date :AUGUST-SEPTEMBER -2009

“MAHARSHI DAYANAND SARASWATI university

DECLERATION

I hereby declare that the project report entitled “A STUDY OF

CURRENT AND SAVING ACCOUNT.” Is the produce of my sincere

effort. This Summer Internship Project Report is being submitted by

me alone, at “MDS UNIVERSITY” ajmer for the partial fulfillment of

the course MBA, and the report has not been submitteD to any other

Educational institutions or for any other purpose WHATSOEVER.

ACKNOWLEDGEMENT

All the words seems dwarf when I attempt to describethe valuable guidance, realistic, supervision and support of mr.vinay khandewal under whose guidelines andinstructions. I am able to complete this project.

No words can express my feelings of heartfelt gratitude

and reverence for Mr. vinay khandelwal whose ready assistance, time and knowledge were always thee for me whenever the need arose for it

. They were very much supportive to me in providing the right and needful information.

  Nitika agarwal

Decleration

acknoweledgement ……

1.1 General Introduction

1.2 Industry Profile………………………………………………………………

a. Origin and Development of the industry……………………………

b. Growth and Present Status of the industry………………………...

c. Future of the industry ………………………………………….…….

1.3 Product and Service Profile of the Organization Competitors ……..

CHAPTER 4 STUDY OF SELECTED RESEARCH PROBLEM …

4.1 Statement of Research Problem………….. ……………………………

4.2 Statement of Research Objectives ..……………………………...... .

4.3 Research Design and Methodology…………………………………

4.4 Analysis of Data ………………………………………………. .

4.5 Summary of Findings ……………………………………………………

CHAPTER 5 SUMMARY AND CONCLUSIONS ………………….

5.1 Summary of Learning Experience…………………………………..

5.2 Conclusions and Recommendations ………………………………….

APPENDIX ……………………………………………………………………………….

BIBLOGRAPHY………………………………………………………………………….

Genesis

IndusInd Bank derives its name and inspiration from the Indus Valley civilisation - a culture described by National Geographic as 'one of the greatest of the ancient world' combining a spirit of innovation with sound business and trade practices.

Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja Group, conceived the vision of IndusInd Bank - the first of the new-generation private banks in India - and through collective contributions from the NRI community towards India's economic and social development, brought our Bank into being.

The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable Prime Minister of India who was then the country’s Finance Minister, started with a capital base of Rs.1,000 million (USD 32 million at the prevailing exchange rate), of which Rs.600 million was raised through private placement from Indian Residents while the balance Rs.400 million (USD 13 million) was contributed by Non-Resident Indians.

A NEW ERA

About IndusInd Bank

IndusInd Bank Ltd. is one of the new-generation private-sector banks in India which commenced its operations in 1994. The Bank enjoys a patronage of 2 million customers and has a network of 180 branches, 402 ATMs spread across 147 geographical locations in 28 states and union territories as on September 30, 2009.  The Bank also has a Representative Office each in Dubai and London. The Bank's total business (deposits plus

advances) as on September 30, 2009 crossed Rs. 40,000 crores.

It has multi-lateral tie-ups with other banks providing access to more than 21000 ATMs for its customers.  It enjoys ‘clearing and settlement  bank’ status with leading capital, commodity and currency exchanges within India eg - BSE / NSE  and commodity exchanges like- MCX, NCDEX, and NMCE.

While continuing its drive for efficiency and profitability, IndusInd Bank is a keen participant in the Corporate Social Responsibility space. It is actively engaged in helping mentally-challenged and underprivileged children and on other hand, helps in sensitizing /upholding environmental and ecologically appropriate behaviour. The Bank actively supports “Green  Practices” within the Bank and under its campaign “Hum aur Hariyali”, it has successfully launched a slew of green initiatives. It is also an active supporter of the arts especially in the field of music and dance.

CRISIL has assigned Highest P1+ rating to IndusInd Bank’s Fixed Deposits and Certificates of Deposit. Recently, CRISIL has reaffirmed its P1+ rating of IndusInd Bank’s Fixed Deposits and Certificates of Deposit programme. ICRA has also assigned the highest A1+ rating to IndusInd Bank’s  Certificates of Deposit.

BOARD OF DIRECTORS Mr. R. Seshasayee

 Managing Director, Ashok Leyland Ltd.

 Mr. R. Sundararaman

 Former Dy Managing Director of SBI

 Mr. T. Anantha Narayanan

 Chartered Accountant and Expert in Agriculture and Rural Economy

 Dr. T. T. Ram Mohan

 Professor, Finance & Accounting, IIM, Ahmedabad

 Mrs. Pallavi Shroff

 Practising Lawyer

 Mr. Premchand Godha

 M.D. of Ipca Laboratories Ltd., having practical experience of SSI & Agriculture

 Mr. Ajay Hinduja

 Businessman

 Mr. Sushil Chandra Tripathi

 I.A.S (Retired), Advocate

 Mr. Ashok Kini  Former Managing Director of SBI Mr. Romesh Sobti

 Managing Director & CEO

MILLESTONE

Year Business Achievements

2007-08

Business Turnover touched a figure of Rs 31833.16 crores Network of Branches increased to 180 along with 183 off-site

ATMS, thus having presence in over 147 geographical locations spread over 28 states including Union Territories

A Strategic tie-up with Reliance Securities for offering a value-added 3-in-1 savings accounts-linked package to customer-comprising a saving bank account, a depository account, and an Internet trading account

Signed an agreement with National Multi Commodity Exchange Ltd.

) to become their Clearing Bank; It already had such agreements with

and NCDEX Strategic partnership with Cholamandlam MS for banc assurance Received recognition in the form of a Certificate of Nomination

for the Global Connect Customer Responsiveness Awards. The participants for

the award were evaluated on various parameters such as Responsiveness, Intelligence Generation, Intelligence Dissemination, Customer Education, Top management Emphasis, Innovation & Learning

Received recognition by BSE and NASSCOM Foundation for the Best Corporate Social Responsibility Practice Category

Featured in the Standard and Poor ESG India Index which provided the investors with exposure to liquid and tradable index of 50 of the best performing stocks in the Indian market as measured by environmental, social and governance (ESG) parameters

2006-2007

Net worth crossed a milestone figure of Rs 1000 crores at Rs 1056 crores

Successful completion of GDR issue of Rs 145.96 crores Business turnover touched a figure of Rs 28.700 crores

registering a growth of 18.17% over the previous year. Network of Branches increased to 170 along with 99 off-site

ATMs, thus having presence in over 141 geographical locations spread over 27 States including Union Territories

Highest A1+ rating for its Certificate of Deposits by ICRA and Highest P1+ rating for its FDs by CRISIL.

Bestowed with the prestigious IBA Award for technology implementation (STP).

Added a number of new business and product lines, viz the launch of Indus GOLD and Indus Gift Card, E-Remittance facility, tie-up with number of Banks for ATM usage, tie-up with Reliance Securities to extend Portfolio Management services and Banc assurance tie-up with Aviva Life Insurance.

Ranked among the top ten banks in the country in the ET500 list of leading companies in India.

Rated as ‘The best among the top 10 private-sector banks’ in a survey covering 79 banks conducted by Business Standard in its November 2005 issue. Ranked sixth in the overall list, the bank was also identified the

“Most Efficient Bank’ among all banks in India. Bestowed ‘India’s Most Productive Bank’ status by a Business

Today- KPMG Survey Presented ‘Outstanding Achiever of the year 2005- Corporate’

(Runner up- Banking Technology Award) by IBA, Finacle (from Infosys) and TFCI

(Trade Fair and Conference International).

2004-05

Business Turnover Crossed Rs 22000 crores Network grew to 115 branches, 9 extension counters and 195

ATMs. Spread over 95 geographical locations Bestowed with highest rating for deposits from reputed rating

agencies Highest rating ‘P1+’ on Fixed Deposits from CRISIL Highest rating ‘P1+’ on Certificate of Deposits from CRISIL Highest rating ‘F1+’ on Fixed Deposits from Fitch Ratings India

Pvt. ltd. Bank’s second International Representative Office opened in

London. 100th Branch opened at Dadar, Mumbai. Signed an agreement with NCDEX as clearing banker. Launched International Mahila Card.

2003-04

Total business volume touched Rs 19000 crores. Completes 10 years of banking excellence Ashok Leyland Finance merges with the bank The first Indian commercial bank to achieve certification for its

‘Entire Network of Branches’ under the ISO 9001:2000 Quality Management System.

Launch of Debit Card- International Power Card. Bank’s first International Representative Office in Dubai. One of the first banks to live on RTGS platform.

2002-03

One of the first banks to implement the RBI- Electronic Funds Transfer Scheme.

2001-02

Total business volume touches Rs 14000 crores. Highest productivity in the Indian banking sector with Rs 16 crores of business per employee.

2000-01

Total business volume crosses Rs 10000 crores1998-99

IndusInd again rated as one of the Top Performing Banks in various survey reports, for the second year in succession.

1997-98

IndusInd rated as one of the Top Performing Banks in various survey reports

1996-97

Pioneer in launching Internet Banking.

Mission

To position induslnd bank limited as a top 3 performer

In the new private bank space in 3years measured by

The 3parameters of profitiability, productivity and

Efficency.

PRODUCTS

PRODUCTS OFFERED BY INDUSIND BANK

Bank offers various products in terms of servicing its customer. The bank has tried to tab the growth of the retail sector & has come with various products, Priority Banking being one of them. Bank has pushed the retail banking through a wide spread distribution network & through the growth of the bank’s

Product& customer base. Bank has also tried to enhance cost

Efficiency by leveraging technology that is continuous upgrading

& customer base.

Saving Account

Induslnd Bank offers you a Regular Saving Account with

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.

Current Account

In today’s fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. INDUSIND Bank Regular Current Account gives you the power of inter-city banking to more than 200 cities.

Fixed Deposits

Safety, Flexibility, Liquidity and Returns!!!

A Combination of unbeatable features of the Fixed Deposit

from INDUSIND Bank.

Credit Cards-

An INDUSIND Bank credit card gives you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, insurance benefits, global emergency assistance service, discount, utility payment, travel

discount, and much more.

Debit Cards-

The INDUSIND Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world.

INVESTMENT

At INDUSIND Bank, we care about all your needs. Along with deposit products and loan offerings, INDUSIND Bank assists you to manage your finance by providing various investments options ranging from INDUSIND Bank offers to investment in mutual funds and pure gold.

You can invest in above products through any of our branches. For selected products INDUSIND Bank also provides, the ease of investing

through electronic channels like ATMs and Internet (www.indusindbank.com).

E-Instructions :

You can transfer securities 24 hours a day, 7dys a week through Internet & Interactive Voice Response (IVR) at a lower cost. Now with “Speak to transfer”, you can also transfer or pledge instructions through our customer care officer.

Mutual Fund

IndusInd bank has tied-up with almost all the mutual funds in

the country for distribution pan India. We are currently distributing schemes of the following mutual fund:-

ABN AMRO LIC

BIRLA PRINCIPAL

BOB PRUICICI

CHOLAMANDALAM RELIANCE

CANBANKSTANDARD CHARTERED

DSP SAHARA

DEUTSCHE SBI

FIDELITY SUNDARAM

HSBE TEMPLETON

HDFC TATA

ING TAURAS

JM UTI

General Insurance:

IndusInd Bank has tied up with “Aviva Life Insurance”

Has 3 Plans:

1. Life Long : - A Plan flexible enough to adapt to your life’s

changing needs.

2. Pension Plus: - Why wait till your 60th birthday to follow

your hearts?

3. Save Guard : - A simple way to secure your service.

General Insurance:

IndusInd Bank has tied up with “CHULAMANDULAM”

1. Health Insurance

2. Marine Insurance

3. Stock Insurance

RETAIL BANKING

Accounts and Deposits:

Saving Accounts

Regular Saving Account

Privilege Saving Account

Privilege Plus Saving Account

Current Account

Regular Current A/C

Business Current A/C

Term Deposit

Fixed Deposit

Flexi term deposit

SAVING ACCOUNT

A safe and easy way to save your money is with a bank saving account. A saving allows you to deposit money in the bank and earn interest own that money over the course of time. A saving account allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time. In return for keeping your money at the bank, the bank pays you money, also known as interest.

There different types of savings account available and each depends on the amount of money you will be depositing, whether or not you want easy access to your funds and how long you want to keep your money in your account. Interest will be earned on the money you have on deposit at the bank. Since you may deposit or withdraw money each day, the bank will calculate how much money you should receive in interest. You will also receive a periodic statement from the bank

listing your deposits, withdrawals, interest, and account

balances.bank may pay a different amount of interest, so it makes sense to look at several banks to decide which one to use.

Saving Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. It also facilitates safe keeping of money. In this scheme fund is allowed to be withdraw whenever required, without any condition. Hence a saving account is a safe, convenient and affordable way to save your money.

A. Product Definition

A saving bank account is the most common operating account for Individuals and others for non-commercial transactions. It helps people to put through day to day banking transactions besides earning some return on the made.

B. Target Segment

By a person in his/her name and By two or more persons in their joint names payable to, Both or all of them of the survivor or survivors of them OR Either or any more of them or the survivor or survivors of them OR Former/Letter or survivor of a particular person during his

lifetime or survivor jointly or survivor.

C. Documentation

Dully filled account opening form as per KYC Norms.o Address Proofo Photo identity Proof

o Pan no/Form 60o 2 Passport size photograph

o D. Types of Saving Account

Regular Saving A/C

Privilege Saving A/C

Privilege Plus Saving A/C

Regular Saving A/C

Features : -

Average Balance –( Average Monthly Balance)-

Rs.5000/- in A Class centers

Rs.3000/- in B Class centers

Rs.1500/- in C Class centers

Services offered-

Freee in International Debit Card

Free Personalized Multicity cheque book

Free Internet banking

Nomination Facility

Free quarterly statements OR Monthly e- Statement/Pass Book Facility

Life Insurance covers at concessional premium

Free Utility Bill Payment facility

Documentation –

KYC Compliance Address Proof Photo Identity Pan no/form 60 2 pp size photographs

Interest Rate – 3.50%

Service Charges – No Service charges applicable subject to

maintenance of stipulated balance.

Privilege Savings A/C

Features: - ▪ Average Quarterly Balance-

A Class Branches – Rs.20000/ B Class Branches - Rs.10000/-

C Class Branches - Rs. 5000/-

Advantages:

Bank deposits are fairly safe because banks are subject to control of Reserve Bank of India with regard to several policy and operational parameters.

Saving Bank account does not have any fixed period for deposit. The depositor can take money from his account by writing a cheque

to somebody else or submitting a cheque directly. Most of the banks offer various facilities such as ATM card, credit card etc. Many of the banks also give internet banking facility through with

one do the transactions like withdrawals, deposits, statement of account etc.

KYC Compliance Address Proof Photo Identity Pan no/form 60 2 pp size photographs

Interest Rate – 3.50%

Service Charges – Non-maintenance charges will be levies, if the required AQB is not maintained.

Privilege Plus Savings A/C

Features: -

▪ Average Quarterly Balance

A Class Branches – Rs.50000/-

B Class Branches – Rs.30000/-

C Class Branches – Rs.20000/-

▪

Services offered–

Free International Debit Card, ATM-5000 & POS-100000

Free personalized Multicity cheque book Free Internet Banking Free DD (Subject to transfer from A/c) Doorstep Banking Monthly Statement/E-mail statements/Passbook facility Free Utility Bill Payment facility Nomination facility Life Insurance cover at concessional premium Free foreign Inward Remittance Lockers at concessional rate Loyalty Points on Mobile Recharge from ATM Special discount on Suvarna Mudra

Current account

Current deposits plan is ideal for professionals and provides flexibility through overdraft facility. The most basic and flexible deposit option for those whose transactions take the form of an everyday exercise.

What is current account?

A running account supporting unlimited withdrawals and deposits.

In a current account, a customer can deposit any amount

of money any number of times. He can also withdraw any amount as many times as

he wants, as long as he has funds to his credit. Current Accounts are meant neither for the purpose

of earning interest nor for the purpose of savings but only

for convenience of the business.

Who needs a Current Account

Businessman, Joint stock companies, institutions, public authorities, public corporations etc. Any business that has numerous banking transactions needs a current account that has numerous daily banking transactions.

A. Product Definition

A current account is opened usually for commercial or

business purposes where there a large number of transactions. It is a running and active account and there are no restrictions on the number of transactions and the amount of transactions.

B. Target Segment

Current accounts are opened by those who have commercial interest and have the needs to issue many cheques. These include:

Individuals Sole Proprietorship Hindu Undivided Families (HUF) Partnership Trusts Association/Societies and Clubs C. Documentation

Account opening form duly as per KYC normsIdentify proof of the authorized signatories

Address Proof authorized signatories

Research methodology

4.1 Statement of research problem:-

PROBLEM DEFINATION:

Sales Executives were with good background human

being and through rigorous process of recruitment but

still not able to perform up to the expectation level of

company, HR is not able to sort out the problem why the

performance is not coming even after giving the full

marketing support.

. The communication technique and dealing with the

customers is also a problem to the sales executives.

4-2 OBJECTIVES OF RESEARCH PROJECT:

RESEARCH OBJECTIVES:

To find out the customer preferences while opening

Savings A/c.

To study brand image of the bank.

To increase the business of the bank.

4.3 Research Design and Methodology

Primary data source: All the people from different

profession were personally visited and Interviewed. They

were the main source of Primary data. The method of

collection of primary data was direct personal interview

through a structured questionnaire.

Secondary Data Source: It was collected from internal

sources. The secondary data was collected on the basis of

organizational file, official records, news papers,

magazines, management.

SAMPLING PLAN:

Since it is not possible to study whole universe, it

becomes necessary to take sample from the universe to

know about its characteristics.

Sampling Units: Customers

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 100 respondents.

Since it was not possible to cover the whole universe in

the available time period, it was necessary for me to take

a sample size of 100 respondents.

RESEARCH LIMITATIONS:

It was not possible to understand thoroughly about the

different marketing aspects of the Financial Consultant

within 60 days.

As stipend, money was not given it was difficult to

continue the project work. All the work was limited in

some limited areas of Bangalore so the findings should

not be generalized. The area of research was Bangalore

and it was too vast an area to cover within 60 days.

All the findings and conclusions obtained are based on

the survey done in the working area within the time limit.

I tried to select the sample representative of the whole

group during my job training. I have collected data from

people linked with different profession at Bangalore.

4.4 Data Analysis

Q 1:What is your Monthly Transaction in your account ?

Monthly

transactions

No. of

respondents

%

(percentage)

5-20 lakhs 28 28%

20-40 lakhs 59 59%

40 lakhs and

above

13 13%

Total 100 100%

nalysis:

59% respondents gave their answer in 20-40 lakhs

transactions.

Analysis:

59% respondents gave their answer in 20-40 lakhs

transactions

28% respondents gave their answer in 0-20 lakhs

transactions.

Question 2

0%

10%

20%

30%

40%

50%

60%

70%

05L- 20L 20L - 40L 40L - Above

05L- 20L

20L - 40L

40L - Above

Do you have a Saving Account?

Response No. of

respondents

%

Yes 97 97%

No 3 3%

97%

3%

Yes No

Analysis: 97% respondents have the saving accounts and

only 3%

do not have saving account

Question 3

In Which Bank?

Bank No. of

respondents

%

Kotak

mahindra

3 3%

HDFC 33 33%

Co-operative 48 48%

ICICI 5 5%

Nationalized 31 31%

HDFC, 33%

ICICI, 5%

Nationalized, 31%

Co- Operative Bank, 48%

Kotak Mahindra Bank, 3%

HDFC ICICI Nationalized Co- Operative Bank Kotak Mahindra Bank

Question 4

Which Factors do you consider for opening a Savings

Account?

No. of respondents

Accessibility 10

Minimum balance 20

DD/pay order 13

Free cheque 10

Debit card 8

Cash deposit 7

Cheque pick up 2

Net banking 16

Mobile banking 7

At per cheque 3

NEFT 2

Analysis:

Respondents gave their answer

10% respondents gave their answer in accessibility, 20%

Minimum balance, 13 % DD/pay order,10% Free cheque,

8% Debit card, 7% Cash deposit, 2% Cheque pick

up, 16% Net banking, 7% Mobile banking, 3% At per

cheque, 2% NEFT, 2% RTGS

Question 5

Which mode of transaction do you avail of frequently?

Response No. of

response

%

Pay order 12 12

DD 22 22

Cheque 76 76

Total 100 100

Cheque, 76%

DD, 32%

Pay Order, 12%

Cheque DD Pay Order

Analysis:

12% Response in pay order, 32% like DD, and 76 %

costumer want from cheque mode.

Question 6

Which types of transaction do you make ?

Response No. of

respondents

%

Intercity 33 33

Outside city 15 15

Both 52 52

Total 100 100

Anal

ysis:33% account holder transaction intercity, 52 %

Both, and 15% outside city.

Question 7

Does your bank assist you in case of any problem?

Response No. of

respondents

%

Yes 90 90

Inter city, 33%

Both, 52%

Outside City

, 15%

No 10 10

Total 100 100

90%

10%

Yes No

Analysis:

90% say yes bank will assist you in case of any problem,

only 10% say

4.5 Summary of Findings

The final draft of the questionnaire was prepared on the

basis of the observations from the pilot study. These

were then finally filled by 100 customer, for the

conclusive study.

Finally the data collected was fed into the data analysis

to be analyzed using statistical techniques.

Obtaining the Primary Data:

The data collection was primarily done through

communication. Communication involves questioning

respondents to secure the desired information, using a

data collection instrument called questionnaire. The

questions were in writing and so were the responses.

Versatility:

It is the ability of a technique to collect the information

on the many types of primary data of interest to

marketers. It also been found that some of the people do

not answer truthfully to all the questions especially in the

case of the personal detail

Summary

and

conclusion

Conclusions and Recommendations

1.Contract Sales Executive (CSE) should be trained to

explain the product features and its value added

services to make customer’s product selection

convenient.

2.Contract Sales Executive (CSE) should recommend

right product to the right customer so as to ensure a

high degree of satisfaction among the customer.

3.The bank needs to make people aware about there

products and the basic benefits they can derive out of it.

4.And also the differential features of its savings account

as compared to other banks.70% of the people did not

even know about the concept, benefits and features of

its saving accounts.

5.The bank should also target small business unit for

whom maintenance of the AQB is not a problem as this

segment is not much penetrated.

LIMITATIONS

Some of the limitations of the project are listed as below:

The time bound period is the major limitation in

research projects.

1.Due to the financial and time constraints a cluster

analysis of the population so

2. as to get better results was not feasible.

Questionnaires

Name of Respondent

_________________________________

Contact No.

_______________________

1.Monthly Transaction?

_____________________________________________

___

2.Do you have saving Account?

(a) Yes (b) No

3. If Yes Which bank’s-

o ICICI

o HDFC

o Kotak Mahindra Bank

o Nationalized

o Other Banks _________________

o Co-Operative Banks___________________

3.Which Factors do you consider for opening a saving

Account

o

o

Net Banking

Mobile Bankingo At Par Cheques NEFTo RTGS

o

o

o Accessibility

o Minimum Balance

o DD/ Pay Order

o Free Cheque

o Debit Card

o Cash Deposit

5. Which mode of transaction do you avail

frequently?

(a) Cheque ( b) DD (c)

Pay Order

6. Which type of transaction do you made

(a) Inter city (b) Intra city (c)

Both

7. Does your bank assist you in case of any problem

(a) Yes (b) No

8.. What are the additional Benefits do you expect from a

Saving Account?

_____________________________________________

_____________________________________________

_____________________________________________

______.

Date___________________

Place__________________

Signature

BIBLIOGRAPHY

1.BOOKS & AUTHORS

· Marketing Management

2. NEWS PAPERS

· Times of India

· Financial Express

3. WEBSITES

· www.hdfcbank.com

www.google.com