Summer training report at HDFC Bank

SUMMER TRAINING PROJECTREPORT On “DIGITALIZATION IMPROVED THE BANKING SERVICES WITH SPECIAL REFERENCE TO HDFC BANK” Towards partial fulfillment of Integrated Master of Business Administration (IMBA) School of Management, Babu Banarasi Das University, Lucknow Submitted by Tasneem Subhan VIIth Semester Roll No-1130675098 Under Supervision of Vishnu Pratap Singh Chauhan Assistant Vice President Session 2016-2017 School of Management Babu Banarasi Das University Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India CERTIFICATE FROM THE ORGANIZATION BONA-FIDE CERTIFICATE OF DEAN-SCHOOL OF MANAGEMENT  ACKNOWLEDGEMENT No project report ever reflects the efforts of a single individual. The report owes its existence to the constant support and guidance of a number of people. I am grateful to all of them. I owe a never-ending debt of gratitude to Dr. Nidhi Agarwal and Mr. Vishnu Pratap Singh Chauhan for their expert guidance and support. I would like to thank all the respondents for giving their valuable time and providing useful information. I am also grateful to all those who have either directly or indirectly contributed towards the completion of the project, for their support and encouragement. Tasneem Subhan  DECLARATION I do hereby declare that the Summer Internship Project Report titled “Digital Products and Initiatives in HDFC Bank Limited” submitted by me towards the partial fulfilment of the requirement of Integrated Master of Business Administration, exclusively prepared and conceptualized by me and is not submitted to any other Institution or University or published anywhere before for the reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not been obtained from any other part. Tasneem Subhan IMBA (7th SEM)  PREFACE As a part of our course curriculum I had to go through a Summer Internship Project Report on any topic to get the right exposure to the practical aspects of business management. I want to express my gratitude for the experience and practical knowledge that I earned during the Summer Internship. In this project report I had presented my great experience in the form of words. In making the project report theoretical knowledge was needed more than the practical which was given to us by my professors in my institute. The project flows logically consisting of a questionnaire. I hope that the findings and the suggestions will help the company, confidently to formulate its strategy in comparison to its competitors. I have enjoyed my report preparation and have learnt lots of new things. I have tried my level best to make this report a reader friendly & also did my level best to fulfil the objective of the study.  TABLE OF CONTENT Chapters Content Page No. Part I 1. Introduction of Banking a. Meaning and Definition b. Indian Banking Industry c. Indian Banking System d. Major Players in India 2. Introduction to Digitalization a. Meaning and Definition b. Digital Banking 3. Company Profile a. History of HDFC Bank b. Mission, Vision and Objectives c. Management at HDFC Bank d. Business Profile e. Ratings/Awards f. Products of HDFC Bank g. Digital Services of HDFC Bank h. Digital Initiatives i. Departments at HDFC Bank g. Swot Analysis of HDFC Bank Part II 4. Objectives of the study 5. Literature Review 6. Research Methodology a. Research Design b. Research Type c. Sampling Design d. Sources of Data Collection e. Data Collection Tools f. Methods of Data Collection Part III 7. Data Analysis & Interpretations 8. Findings 9. Conclusion 10. Suggestions 11. Limitations 12. Bibliography 13. Appendix  INTRODUCTION OF BANKING MEANING AND DEFINITION: Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949 The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." In fact this is the function which the bank performed when banking originated. "Banking in the most general sense, is meant the business of receiving, conserving & utilizing the funds of community or of any special section of it." -By H.Wills & J. Bogan "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras Thus A Bank:  Accept deposits of money from public.  Pays interest on money deposited with it.  Lends or invests money.  Repays the amount on demand, 1   Allow the money deposited to be withdrawn by cheque or draft. ORIGIN OF WORD BANK: The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the government was referred to as a raising a bank. ORIGIN OF BANKING: Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks. 2  INDIAN BANKING INDUSTRY BANKING INDUSTRY AT GLANCE Banking is nearly as old as civilization. The history of banking could be said to have started with the appearance of money. The first record of minted metal coins was in Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700’s and 1800’s, with many banks created to deal with increasing trade. The history of banking in each country runs in lines with the development of trade and industry, and with the level of political confidence and stability. The ancient Romans developed an advanced banking system to serve their vast trade network, which extended throughout Europe, Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word “ban co”, meaning bench, because moneylenders worked on benches in market places. The bank of Venice was established in 1171 to help the government raise finance for a war. At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. Receipts given to the Merchant were sometimes used to 3 buy or sell, with the metal itself staying under lock and key. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest, as not all of the merchants would ask for the gold and silver back at the same time. Eventually, instead of charging the merchants, the goldsmiths paid them to deposit their gold and silver. The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of their own receipts. New technology transformed the banking industry in the 1900’s round the world, banks merged into larger and fewer groups and expanded into other country. HISTORY OF INDIAN BANKING INDUSTRY Banking in India has a long and elaborate history of more than 200 years. The beginning of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was established. But the industry changed rapidly and drastically, after the nationalization of banks in 1969. Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for 72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly expanded their foot prints after nationalisation of banks in India in 1969 and further in 1980. Although there is a restrictive entry/expansion for private and foreign banks in India, these banks have increased their presence and business over last 5 years. Peculiar characteristic of Indian banks unlike their western counterparts such as high share of household savings in deposits (57.4% of total deposits), adequate capitalization, stricter regulations and lower leverage makes them less prone to financial crisis, as was seen in the western world in mid FY09. The Scheduled Commercial Banks (SCBs) in India have shown an impressive growth from FY04 to the mid of FY09. Total deposits, advances and net profit grew at CAGR of 19.6%, 27.4% and 20.2% respectively from FY03 to FY08. Banking sector recorded 4 credit growth of 33.3% in FY05 which was highest in last 2 and half decades and credit growth in excess of 30% for three consecutive years from FY04 to FY07, which is best in the banking industry so far. Increase in economic activity and robust primary and secondary markets during this period have helped the banks to garner larger increase in their fee based incomes. A significant improvement in recovering the NPAs, lowest ever increase in new NPAs combined with a sharp increase in gross advances for SCBs translated into the best asset quality ratio for banking sector in last two decades. Gross NPAs to gross advances ratio for SCBs decreased from the high of 14% in FY2000 to 2.3% in FY08. With in the group of banks, foreign and private sector banks grew at higher rate than the industry from FY03 to FY08 primarily because of lower base effect and rapid expansion undertaken by these banks. In FY09, overall growth in credit and deposits was led by PSBs. However, growth of private and foreign banks was significantly lower in FY09 due to their high exposure to stressed sectors and problems at parent level for foreign banks. Unsecured bank credit has risen over the years and stood at 23.3% of bank credit in FY08 as compared to just 10.9% in FY2000. Lending to sensitive sector has also grown at CAGR of 46.1% from FY05 to FY08. In the backdrop of the economic downturn, we feel that the excellent performance seen in last five years ended FY08 will be difficult to repeat in coming years. We expect that with the downturn in the economy, credit and deposit growth will moderate in coming years. Credit growth will be led by spending on the infrastructure while retail credit will show a moderate growth. Margin pressures due to lag effect of rate cuts between interest rate on deposits and advances, lower treasury gains and core fee income and increasing in provisions for NPAs is likely to put pressure in the bottom line of the banks. Going forward, PSBs’ which are close to the required lower level of government stake and have concentrated presence in particular region are likely to consider its merger with other PSB as an important option if they want to sustain the growth seen in past. 5 FUNCTIONS OF BANKS Primary Functions  Acceptance of Deposits  Making loans & advances  Loans  Overdraft  Cash Credit  Discounting of bills of exchange Secondary Functions  Agency functions  Collection of cheques & Bills etc.  Collection of interest and dividends.  Making payment on behalf of customers  Purchase & sale of securities  Facility of transfer of funds  To act as trustee & executor. Utility Functions  Safe custody of customers valuable articles & securities.  Underwriting facility  Issuing of traveller's cheque letter of credit.  Facility of foreign exchanges  Providing trade information  Provide information regarding credit worthiness of their customer. 6 STRUCTURE The Indian banking system can be classified into nationalized banks, private banks and specialized banking institutions. The industry is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is the foremost monitoring g body in the Indian Financial sector. It is a centralized body that monitors discrepancies and shortcomings in the system. Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) – the regulatory, central bank. This segment broadly consists of: 1. Commercial Banks 2. Co-operative Banks The commercial banking structure in India consists of: 1. Schedule Commercial Banks 2. Unscheduled Banks Schedule Commercial Banks constitute of those banks, which have included second schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub sector can broadly classified into: 1. Public Sector 2. Private Sector 3. Foreign Sector Public sector banks have either government of India Reserve Bank of India (RBI) as the majority shareholder. This segment comprises of: 1. State Bank of India (SBI) and its subsidiaries 2. Other Nationalized Banks Industry estimates indicate that out of 274 commercial banks operating in the country, 223 banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begun their operations here. The 7  specialized banking institutions that include cooperatives, rural banks, etc. form a part of the nationalized banks category. INDIAN BANKING SYSTEM Reserve Bank of India Schedule Banks Non-Schedule Banks Central co-op Commercial Banks State co-op Commercial Banks and Banks Banks Primary Cr. Societies Indian Foreign Public Sector Private Sector HDFC, Banks Banks ICICI, etc 8 State Bank of Other Nationalized Regional India and its Banks Rural Banks Subsidiaries CLASSIFICATION ON THE BASIS OF OWNERSHIP On the basis of ownership banks are of the following types : PUBLIC SECTOR BANKS Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective. PRIVATE SECTOR BANKS These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him. CO-OPERATIVE BANKS Co-operative banks are those financial institutions. They provide short term & medium term loans to their members. Co-operative banks are in every state in India. Its branches at district level are known as the central co-operative bank. The central Co-operative bank in turn has its branches both in the urban & rural areas. Every state 9 Co-operative bank is an apex bank which provides credit facilities to the central co operative bank. It mobilized financial resources from richer section of urban population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI. ACCORDING TO RESERVE BANK OF INDIA ACT 1935 Banks are classified into following two categories son the basis of reserve bank Act. 1934. SCHEDULED BANK These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock company. It is a co-operative organization. These banks find their mention in the second schedule of the reserve bank. NON SCHEDULED BANK These banks are not mentioned in the second schedule of reserve bank paid up capital of these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India. CLASSIFICATION ACCORDING TO FUNCTION On the basis of functions banks are classified as under COMMERCIAL BANK The commercial banks generally extend short-term loans to businessmen & traders. Since their deposits are for a short-period only. They cannot lend money for a long period. These banks reform various types or agency job for their customers. These banks 10 are not in a position to grant long-term loans to industries because their deposits are only for a short period. The majority of joint stock banks in India are commercial banks which finance trade & commerce only. SAVING BANKS The principle function of these banks is to collect small saving across the country and put them into productive use. These banks have shown marked development in Germany & Japan. These banks are established in HAMBURG City of Germany in 1765. In India a department of post offices functions as a saving banks. FOREIGN EXCHANGE BANKS These are special types of banks which specialize in financing foreign trade. Their main function is to make international payments through purchase & sale of exchange bills. As it well known, the exporters of a country prefer to receive the payments for exports in their own currency. Thus these banks convert home currency into foreign currency and vice versa. It is on this account that these banks have to keep with themselves stock of the currency of various countries. Along with that, they have to open branches in foreign countries to carry on their business INDUSTIRAL BANKS The industrial banks extends long term loans to industries. In fact, they also help industrials firms to sell their debentures and shares. Some times, they even underwrite the debentures & shares of big industrial concerns. These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders and jweelers have been the forerunner of these banks in India. INDIGENIOUS BANKS These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders and jweelers have been the forerunner of these banks in India. 11 CENTRAL BANK The central bank occupies a pivotal position in the monetary and banking structure of the country. The central bank is the undisputed leader of the money market. As such it supervises controls and regulates the activities of commercial banks affiliated with it. The central bank is also the higher monetary institution in the country charged with the duty & responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935. AGRICULTURAL BANK The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need for setting up special type of banks of finance agriculture. The credit requirement of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to effect permanent improvements on the land to buy equipment and to provide for irrigation works. There are two types of agriculture banks. 1. Agriculture co-operative banks, and 2. Land mortgage banks. The farmer provide short-term credit, while the letter extend long-term loans to the farmers. OPPORTUNITIES The Banking sector is considered the most lucrative option in today’s job market. In the industry, a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking, Investment Banking and Retail Banking. One could work in a variety of areas in banking industry including Recurring Deposit account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager, mortgage loan underwriter, loan processing 12 officer, accountant, product marketing and sales executive, and customer service executive among others. In the Financial Services, some of the important jobs include that of a stockbroker who is essentially a person who buys and sells securities on behalf of individuals and institutions for some commission. While some brokers like to practice with individual clients others work for institutions. Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatation’s of shares as they are expected to have sound knowledge of capital markets. Investment analysts are the backbone of the financial services sector. They study the financial reports of companies, assess various statistical information, profitability projections, compare financial results, survey the industry as a whole and on the basis of the available information, and finally conclude to a decision. Equity Analysts do jobs similar to investment analysts and research the equity markets and make predictions. MAJOR PLAYER IN INDIA 1. HDFC BANK LTD 2. ICICI BANK LTD 3. STATE BANK OF INDIA LTD 4. PUNJAB NATOINAL BANK LTD 5. BANK OF BARODA LTD 6. FEDERAL BANK LTD 7. AXIS BANK LTD 8. ING VYSYA BANK LTD 9. IDBI BANK LTD 10. INDUSIND BANK LTD 11. YES BANK LTD 13  INTRODUCTION TO DIGITALIZATION Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. Integration of digital technologies into everyday life by the digitization of everything that can be digitized. “Digital” is the new buzz word in the banking sector, with banks all around the globe hopping onto the digital bandwagon. Just like how the introduction of mobile technology massively disrupted innovation in the banking sector, digital is now doing the same. Banks of all sizes are making sizeable investments in digital initiatives in order to maintain a competitive edge. So, what does “digital” actually mean? It definitely provides a glimpse into the future of banking. What digital essentially does is that it uses technology to design experiences, both seen and unseen. “Digital is all about making what can be seen unseen – making services so smooth and seamless that it becomes invisible to the customer”. “Despite all the automation and improvements that 14 digital banking has the potential to achieve, customers and their needs still form the very core of the banking sector.” It is the simplicity of design, the removal of friction and the ability to improve the customer experience. DIGITAL BANKING MEANING AND DEFINITION “Digital Banking – a new concept in the area of electronic banking, which aims to enrich standard online and mobile banking services by integrating digital technologies, for example strategic analytics tools, social media interactions, innovative payment solutions, mobile technology and a focus on user experience.” Digital banking is:  Delivering a customized but consistent FI brand experience to customers across all channels and points of interaction...  ...underpinned by analytics and automation... 15  ...and requiring a change in the operating model, namely products and services, organization, culture, and skills and IT...  ...in order to deliver demonstrable and sustainable economic value. Digital Banking is the application of technology to ensure seamless end-to-end processing of banking transactions/operations; initiated by the client, ensuring maximum utility; to the client in terms of availability, usefulness and cost; to the bank in terms of reduced operating costs, zero errors and enhanced services. Benefits to the bank: 1. Lower operating costs through; i. the elimination of costly back-office processing operations, ii. fewer (or ideally no) errors, iii. smaller branch footprint (the typical branch can become a kiosk affair, providing technology interfaces for the client to use plus the ability to deal with banking specialists via a video link) – a minimum number of actual staff will be required. iv. concentrating banking/business specialists in a single centre, who are then available to clients via a technology link (either on their mobile, pc or via a kiosk branch). Operating cost savings of between 20% to 40% could be achieved this way, according to industry experts. Cutting costs has the opposite effect on profits – they go up. 2. Dumping legacy systems; i. Make no mistake - one of the biggest drawbacks to going ‘Digital’ is this irrational clinging to legacy systems (developed in the 1960s and 1970s) that hold progress back. Banks plead the huge cost of making the change. They are wrong. The ultimate costs of not making the change are far greater. 16 Benefits to the customer: 1. Improved services and product offerings; i. 24/7 bank services and availability through your mobile, pc or kiosk branch, ii. ‘smart banking’ applications that allow ALL transactions to be completed from the device of your choice, from beginning to end (with clear instructions and fail safe mechanisms), iii. access to a FULL range of services (savings, investments, insurance, loans, mortgages, foreign currency, etc.), iv. new useful client services such as warnings, notifications, budgeting, expenditure analyses, savings programs, calculators (you name it – the range is endless), v. Lower charges (and therefore cheaper banking), vi. Banking that meets the client’s needs (not the banks) vii. Banking will mean digital banking from 2015 2. 69% of customers already use the Internet to buy financial products 3. Customers are willing to pay for digital banking 4. Banks need to improve their digital offer to attract new customers Digital banking is set to overtake branch networks as the preferred access channel for how customers will interact with their bank by 2015. 17  Online and mobile are preferred channels, particularly for Generation Y customers Immersed in digital Digital communication is pervasive; from mobile phones to tablet computers, we are immersed in digital. Recent development of new digital features has led to:  Improvements in user-experience design through interactive, game-like interfaces that are starting to merge the boundaries between the real and the virtual and bringing data to life through rich visualisations.  Advances in mobile devices and networks, providing new services such as enhanced digital security and the ability to access the Internet from anywhere (partially limited by high international roaming charges).  The rise of social media and collaboration tools, empowering customers and employees, and moving control of the ‘brand message’ from businesses to consumers.  Innovation in digital analytics and predictive models, driving deeper insight into customers’ behaviour and enabling highly targeted and relevant treatment strategies to be executed through digital media. 18  New channel integration technologies, enabling a more seamless end-to-end experience for customers with their bank. Generation Y is fully embracing digital communication and is the customer group with whom banks need to establish customer primacy relationships. The advantage of being the primary bank is increased share of wallet and higher revenue over time, based on a strong sense of customer loyalty – and good customer service. PwC research shows that Generation Y are more than 20% more likely to use, or consider using online or mobile banking services, than Baby Boomers and nearby twice as likely as ‘matures’. According to this research, their primary bank is consistently more likely to be the bank of choice for customers when they are planning to buy another banking product. Consumer expectations are changing with digital interaction Present day consumers expect high quality digital communication. Rich content including elegant designs, instant search results and interactive features. Bank websites, especially online banking sections, are now required to offer a pleasant experience while remaining highly functional. It is still common for banks to send out account statements using the postal service; however, for many people digital banking offers 24/7 account balance control – there is a clear preference, especially for younger customers, to want instantaneous access to their accounts. The posted account statement is snail mail in comparison. The utility of snail mail, by contrast, is rapidly dying. Consumers have access to more information than ever before, they now communicate with more people and more frequently – traditional word-of-mouth has a completely different meaning when one considers the immediacy of Facebook, Twitter or even email. Access to information and the ease with which consumers can share views with those they know – or even ‘the world’ – is dramatic. Good experiences can be easily shared online... as can negative ones. 19 It is important that banks understand the importance of customer thinking in deciding where to trust their money and in choosing their primary banking relationship. This has long-term influence personally, but also as an element of influence on their friends and those they communicate with online. Banks should consider four main aspects of a robust digital offering: 1. Customer attitudes and behaviour are changing 2. Digital is preferred globally. 3. Digital is a part of Generation Y’s lifestyle and this is the key time for them to decide on their primary banking relationship. 4. Digital is evolving – technology devices and software all serve to disrupt traditional means of communication. Simultaneously, each brings opportunity. Security is the foundation of digital banking Security extends from the bank’s hardware to the user’s device – whether a PC/Mac at home, an iPad or the newest Smartphone. In all cases, digital banking must employ robust security technologies which protect the communication, user information and the bank’s IT infrastructure. Indeed, it is clear that for digital banking to be a rewarding experience for the customer and a profitable growth area for the banks, technology partners, payment processing service providers and mobile phone operators – there ought to be a comprehensive agreement on shared technology standards and processes. The European Commission has just issued a Green Paper, ‘Towards an integrated European market for card, internet and mobile payments’ which addresses many of the issues while being much broader than online banking itself. Luxembourg’s LuxTrust is a strong step here in moving digital banking forward in terms of a security standard. Digital in Private Banking 20 Private Banks have been slow to introduce digital technology applications for their customers arguing that the private banking industry is a personal and pre-dominantly face to face business with little need for such applications to enhance the relationship. Security and privacy issues are two of the reasons cited for not embracing these new developments. However, there are a number of arguments for private banks to seriously evaluate their digital strategy and make it one of the cornerstones of their service offering and brand building activities. As the next generation of private banking clients start to dominate, private banks will need to avoid the image of an old out-of-date bank that has lost touch with its clients. Private banking is about being a trusted advisor as well as being connected and recommended. Since the digital revolution, which started in the 1990’s, people are increasingly turning to the Internet not only to inform themselves regarding financial products but also the reviews of other customers using the products and services. Customers are already using social media to share their views on financial products and services. There is some recognition here in Luxembourg of the increasing place digital communication is taking, as noted in The PwC Global Private Banking / Wealth Management Survey 2011 which found that 38 percent of private bankers expected to interact more with their clients through social media in the next two years and that 56 percent of private banks expected to use mobile technologies over the same period. 21  COMPANY PROFILE History of HDFC Bank The housing development Finance Corporation Limited (HDFC) was amongst the first to receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’S liberalization of the Indian Banking Industry. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The Bank commenced operation as a scheduled Commercial Bank in January 1995. Mission, Vision and Objectives The mission of HDFC is to become “a world class Indian bank”, benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit and compliance. The objective is to build sound customer franchises across distinct business 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, consistence with the Bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability. HDFC Bank’s business objectives emphasize the following:  Increase their market share in India’s expanding banking and financial services industry by following a disciplined growth strategy and delivering high quality customer service.  Leverage their technology platform and open, scale able systems to deliver more products to more customers and to control operating costs. 22   Maintain their 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 product and services that reduce our cost of funds.  Focus on high earning growth with low volatility. Bank logo Type Private company Traded as BSE: 500180 NSE: HDFCBANK NYSE: HDB BSE SENSEX Constituent CNX Nifty Constituent Industry Banking, Financial services Founded August 1994 Headquarters Mumbai, Maharashtra, India Area served Worldwide Key people Aditya Puri (MD)[1] Products Investment Banking Investment Management Wealth Management Private Banking Corporate Banking Private Equity 23  Finance and Insurance Consumer Banking Mortgages Credit Cards[2] Revenue ₹74,373.22 crore(US$11 billion) [3] (2016) Profit ₹12,817.33 crore(US$1.9 billion) (2016)[4] Total assets ₹687,892 crore(US$100 billion) (2015)[4] Total equity ₹505.64 crore(US$75 million) [5] Number of 76,286 (March 2015)[6] employees Website HDFCBank.com Registered Office HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra – 400013 Management at HDFC S.No Name Designation 24  1 Shyamala Gopinath Chair Person 2 Paresh Sukthankar Deputy Managing Director 3 A N Roy Director 4 Keki Mistry Director 5 Renu Karnad Director 6 Umesh Chandra Sarangi Additional Director 7 Mr. Aditya Puri Managing Director 8 Kaizad Bharucha Executive Director 9 Bobby Parikh Director 10 Partho Datta Director 11 Malay Patel Director Other Detail: Business Group HDFC Group Listings BSE , NSE , NYSE ISIN No. INE040A01018 Incorporation 31/12/1994 Public Issue Date 31/12/1995 Promoters HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing 25 related credit facilities. With its experience in the financial markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. Capital Structure As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002 Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against Rs.629,322 crores as of June 30, 2015. The Bank’s total income for the quarter ended June 30, 2016 was Rs.19,322.6 crores, as against Rs.16,503.0 crores for the quarter ended June 30, 2015. Net revenues (net interest income plus other income) increased by 19.6% to Rs.10,588.1 crores for the quarter ended June 30, 2016 as against Rs.8,850.7 crores in the corresponding quarter of the previous year. Distribution Network HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution network was at 4,014 branches in 2,464 cities. All branches are linked on an online real- time basis. Customers across India are also serviced through multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The 26 Bank’s expansion plans take into account the need to have a presence in all major industrial and commercial centres, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active member base. As of June 30, 2016, the Bank also has a network of 4,541 branches and 12,013 ATMs across India. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. Management Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs. Gopinath has 39 years of experience in financial sector policy formulation in different capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board. Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas of financial sector regulation and supervision, development and regulation of financial markets, capital account management, management of government borrowings, forex reserves management and payment and settlement systems. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength. Technology 27 HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank’s branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share. Business Profile HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which 28 combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. 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. 29 HDFC Bank was the first bank in India to launch an International Debit Card in 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 March 2015, the bank had a total card base (debit and credit cards) of over 25 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. 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. Ratings/Awards Credit Rating HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch 30 Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments. Corporate Governance Rating The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank was assigned a 'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest. Awards and Achievements 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. 31 2016 IDRBT Banking Technology Excellence Best Bank in Banking Technology Awards 2016 Excellence for the year 2015-16 Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial Awards Industry & Digital Banking Dun & Bradstreet Corporate Awards HDFC Bank wins Dun & Bradstreet 2016 Corporate Award 2016 in the Banking sector The Financial Express India's Best - Profitability: Rank 1 Banks Awards 2015 - Efficiency: Rank 1 - Strength & Soundness: Rank 1 Outlook Money Awards 2015 - Best Bank of the year : Runner up - Winner : Institutional Financial Distributor of the year Pension Fund Regulatory and - Best Performing Bank - Maximum Development Authority awards for Atal APY Subscribers Pension Yojana - Best Performing Bank in the Private sector Banks category - Best Performing Bank : Atal Pension Yojana Carnivals in Private Sector Banks Business Today KPMG India's Best Banks 2015 Awards Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global CEOs for 2nd year 32 IBA Awards HDFC Bank wins prestigious IBA Banking Technology Awards Business Today Best Companies to Work for in India NABARD Award Best Bank in JLG-Bank Linkage programme in Assam Business Today - KPMG India's Best HDFC Bank wins Bank of the year and Bank Best Digital Banking Initiative awards NABARD Award - The Best Bank in HDFC Bank wins NABARD Award SHG Credit Linkage in Tamil Nadu 2015 AIMA Managing India Awards 2015 - Business Leader of the Year - Aditya Puri Barron's - World's 30 Best CEOs - Mr Aditya Puri Finance Asia poll on Asia's Best - Best Managed Public Company - Companies 2015 India' Best CEO- Aditya Puri Best Corporate Governance- Rank 3 Best Investor Relations- Rank 3 J. P Morgan Quality Recognition - Best in class straight Through Award Processing Rates 33 2014 Euro money - HDFC Bank wins Best Private Banking Services for Super affluent clients for 5 years in a row at Euro money Awards Euro money Private - Best Private Banking Services award for Net-worth- Banking and specific services category for Super affluent clients (US$ Wealth 1 million to US$ 5 million). Management - Best Private Banking Services award Asset Survey 2015 Management FE Best Bank - Best Bank in the New Private sector Awards - Winner - Profitability - Winner - Efficiency Business Today - - Best Large Bank - Overall KPMG Study 2014 - Best Large Bank - Growth Business world- - Best Large Bank PwC India Best - Fastest Growing Large Bank Banks Survey 2014 Asia money FX - Best Domestic Provider of FX options Poll 2014 - Best Domestic Provider of FX products & Services - Best Domestic Provider of FX research & market coverage - Best Domestic provider for FX Services The Asian Banker Strongest Bank in India in the Asian Banker 500 (AB 500) Strongest Bank by Balance Sheet Ranking 2014 34 Dun & Bradstreet - - Best Bank - Managing IT Risk (Large Banks) Polaris Financial - Best Bank - Mobile Banking (Large Banks) Technology - Best Bank - Best IT Team (Private Sector Banks) Banking Awards 2014 Forbes Asia Fab 50 Companies List for the 8th year Brands TM Top 50 India's Most Valuable Brand Most Valuable Indian Brands study by Millward Brown Finance Asia - Best Bank - India Country Awards - Best CEO- Rank 1 2014 and poll on - Best CSR - Rank 1 India's Top - Best CFO - Rank 2 Companies Asia money Best of Best Domestic Banks - India Dun & Bradstreet - Best Corporate in Banking Sector Manappuram Finance Limited Corporate Award 2014 35  Products of HDFC Bank HDFC bank provides very large range of financial product to the customer for their better financial transaction. The product of HDFC bank are Savings Account Everyone needs a savings account to store away the surplus cash. The bank offers savings accounts under various types starting from basic accounts to premium accounts with variety of features. The interest rates on the Savings Account are 4% p.a. which is calculated daily on the end of day balance. The following accounts and their respective interest rates are mentioned underneath:  Savings Max Account  Regular Savings Account 36   Women Savings Account  Kids Advantage Account  Senior Citizens Account  Family Savings Group Account  Basic Savings Bank Deposit Account  Institutional Savings Account  BSBDA Small Account Salary Accounts The bank offers multiple types of salary accounts to suit the needs of all types of corporate. The salary accounts offer various features to the accountholders like free insurance coverage. The different types of Salary Accounts are:  Premium Salary Account  Regular Salary Account  Defence Salary Account  Salary Family Account  Classic Salary Account  Reimbursement Account  Basic Savings Bank Deposit Accounts – Salary Current Accounts Current accounts are required by businessmen and professionals who have regular transactions through the bank. The account deals mainly in liquid deposits and allows unlimited number of transactions every day like funds being withdrawn or cheques being 37 written against the account without worrying about the balance in the account. Professionals, traders, SME businessmen, agricultural businesses can avail various benefits like fund transfers between all HDFC Accounts, free local collections through cheque and fund transfers as well as easy inter-city banking. Moreover, the bank also offers a range of Current Accounts to suit individual preferences like:  ULTIMA Current Account  Supreme Current Account  Apex Current Account  EZEE Current Account  Max Current Account  Agri Current Account  Plus Current Account  Current Account for Hospitals and Nursing Homes  Trade Current Account  Current Account for professionals  Premium Current Account  Merchant Advantage Plus Current Account  Regular Current Account  Merchant Advantage Current Account  Flexi Current Account  Institutional Current Account Deposits Individuals who wish to save money for a longer term with a view to earn a higher rate of interest seek to invest money in term deposit accounts which guarantee higher interest 38 rates. HDFC Bank also offers various types of deposit accounts promising high interest rates for customers seeking deposit accounts. Here are the deposit accounts available with the bank:  Regular Fixed Deposit  Recurring Deposit  5 year Tax Saving Fixed Deposit  Safe Deposit Locker – the bank also provides the facility of Safe Deposit lockers for you to store your valuable deposits. The lockers are available in various sizes at various locations. Rural Accounts Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural accounts available:  Basic Savings Bank Deposit Accounts – Farmers  Kisan Club Savings Accounts Loans HDFC bank is a leader in home loan sector and also offers various other kinds of loans at attractive interest rates for various needs of the individuals. The following types of loans are available with the bank: Personal Loan Business Loan Home Loan Car Loans 39  Two-Wheeler Loans Gold Loan Loan against Assets Educational Loan Government Sponsored Programs Rural Loans Credit Cards The bank has a wide range of credit cards for customers which promise special offers and privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward Points on every spending made by the cardholder which can be redeemed for attractive offers. The range of Credit Cards offered by the bank are as follows: Super Premium Cards- There are 3 variants under the Super Premium Variety which are:  Infinia  Regalia  Diner’s Club Black Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and Times Group which offer special discounts on airline travel through Jet Airways and offers on dining and movie tickets. The range of co-brand cards includes:  Jet Privilege HDFC Bank World 40   Jet Privilege HDFC Bank Platinum  Platinum Times Card  Titanium Times Card Professional Credit Cards- Credit cards issued specifically to professionals like Doctors and Teachers with best lounge programs and freedom to fill fuels across any fuel s respectively. The cards come in two variants:  Doctor’s Superia  Teacher’s Platinum Premium Travel Cards- These cards are specially designed to offer travel related benefits and discounts. The cards offer reward points which can be redeemed against air tickets or against dining and also lounge access of airports. The range includes:  Superia  AllMiles Cash back cards- The specialty of these cards is that the card promises cash back on everyday spends in the form of Reward Points which can be redeemed to get cash back and also zero fuel surcharge. The range of cash back cards include:  Platinum Edge  Titanium Edge  Money Back Premium Cards- Credit cards which offer premium range of offers and discounts on dining, entertainment and complimentary access to airport lounges. The premium rage of credit cards include the following types of cards:  World MasterCard 41   Diners Club Premium  Diners Club Rewardz  Visa Signature Solitaire- A premium card especially for women customers with exclusive offers and rewards for females. Platinum Plus Card- It is a regular credit card designed for regular usage offering Reward Points on everyday spends and also fuel surcharge waiver. Commercial Cards- Arange of credit cards especially designed for business usage offering fuel surcharge waiver, lounge access to airports, travel and entertainment benefits and also air tickets discounts. The range of business cards include:  Business Platinum  Business Gold Credit Card  Corporate Platinum  Corporate World MasterCard  Corporate VISA Signature  Corporate Card  Purchase Card  Distributor Card Debit Cards HDFC Bank offers Debit cards with every Savings Account to customers which are safer than carrying cash because they require a PIN every time they are used, they provide 42 great discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used across almost all outlets for payment. The range of debit cards issued by the bank are:  EasyShop Platinum Debit Card  Jet Privilege HDFC Bank World Debit Card  Easy Shop Titanium Royale Debit Card  EasyShop Titanium Debit Card  EasyShop Debit Card  EasyShop Business Debit Card  EasyShop Women’s Advantage Debit Card  EasyShop NRO Debit Card  EasyShop Imperia Platinum Chip Debit Card  EasyShop Gold Debit Card  RuPay Premium Debit Card Demat Account HDFC Bank issues Demat Account for investors like traders, long term investors as well as beginners for a flexible and customized solution. The demat account offered by the bank is safe and dependable for buying and storing a customer’s equity investments, mutual funds, IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and NCDs. The account can also be opened online and the types of demat accounts offered are as follows:  Demat Account  2 in 1 Account  3 in 1 account 43 Investments HDFC bank deals in various investment avenues to complete the financial portfolio of the customer like Mutual Funds, Life Insurance products and General Insurance Products. The investment products are further subdivided into the following categories:  Mutual Funds  Equities & Derivatives through HDFC Securities Trading Account  IPO Application through ASBA (Application Supported by Blocked Amount)  Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat pure gold bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and tamper proof packing  Investment in Silver through Mudra Silver Bars which are available in 50g and 100g with Assay Certification and tamper-proof certified packaging.  8% Savings Bond which are risk-free and can be bought with a minimum investment of Rs.1000  Sec 54 EC – Capital Gains Bond with a maximum investment of 50 lakhs and tax exemption on capital gains  Inflation Indexed National Savings Securities – Cumulative (IINSS – C) with a minimum investment of Rs.5000 and a maximum of Rs.5 lakh. Insurance HDFC Bank offers both life and non-life products to its customers. The life insurance products are issued in association with HDFC Life Insurance Company Limited and the non-life insurance products are issued in association with HDFC Ergo. The following are the heads of insurance and their respective plans: 44 Life Insurance The list of below mentioned plans range from term insurance, endowment insurance and money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete insurance products basket for customers to choose from. The plans available are:  HDFC Life Click2Protect Plus Plan - an online term insurance plan with varied options corresponding to benefits payable  HDFC Life Health Assure Plan - a health plan  HDFC Life Cancer Care – a health plan specifically designed for diagnosis and treatment of cancer  HDFC Life Pension Super Plus – a pension plan which guarantees income after retirement  HDFC SL ProGrowth Super II – a Unit Linked Plan giving the dual benefit of insurance and market linked growth for wealth appreciation  HDFC SL YoungStar Super Premium – a Unit Linked Child Plan taking care of your child’s future while at the same time giving increased benefits in the form of market linked returns.  HDFC Life ProGrowth Plus - a unit linked insurance plan  HDFC Life Classic Assure Plus – a limited premium life insurance plan with higher protection option  HDFC Life Super Savings Plan – a participating Endowment Assurance plan with built-in Accidental Death Cover for a comprehensive coverage  HDFC Life Personal Pension Plus – a pension plan with lifelong pension option and guaranteed benefit at maturity  HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to choose Accidental Death Coverage  HDFC Life Guaranteed Pension Plan – a limited term premium paying annuity plan with guaranteed lifetime pension payments 45   HDFC Life New Immediate Annuity Plan – an immediate annuity plan wherein the pension payouts start immediately after payment of the Purchase Price  HDFC Life Smart Woman Plan – an award winning insurance cum investment plan designed for women for covering their life as well as maternity expenses, congenital or malignant female-specific cancers  HDFC Life Invest Wise Plan – a single premium ULIP plan for wealth maximization without having to pay regular premiums  HDFC Life Single Premium Pension Super Plan – a single pay pension plan with market linked returns and an assured benefit of 101% of premiums paid on vesting or maturity  HDFC SL Crest – a simple insurance plan which can be taken by filling up a Short Medical Questionnaire  HDFC Life Super Income Plan – a participating guaranteed benefits plan which pays regular incomes in the payout period of 8-15 years  HDFC Life Sanchay – a traditional life insurance plan with a limited premium paying term  HDFC Life YoungStar Udaan – a child insurance plan which can be either availed as an Endowment Plan with lump sum benefit at maturity or money back plan with benefits paid out in instalments during the last 5 policy years  HDFC SL ProGrowth Maximiser – a single pay unit linked plan with no limit on the maximum premium investment  HDFC Life Click2Invest ULIP – a unit linked plan available online  HDFC Life Sampoorna Samridhi Plus Plan – a limited payment endowment assurance plan wherein the cover can be extended for up to 100 years  HDFC Life Sampoorna Nivesh – a traditional insurance plan with single, regular or limited premium paying options Health Insurance 46 Health Insurance falls under the purview of general insurance and four types of health insurance plans are offered by the bank which are as follows:  Health Suraksha – a health plan covering hospitalization, pre and post hospitalization expenses, day care procedures, domiciliary treatment and organ donor expenses. The coverage can be taken for an individual and also his family with treatments in a network of 4800+ hospitals.  Critical Illness Silver Plan – a health plan specifically designed for treatment of critical illnesses covering 8 critical illnesses in its scope of coverage  Critical Illness Platinum Plan – a critical illness plan which covers 15 critical illnesses and provides the benefit upon diagnosis of the covered illness  Individual Personal Accident Plan II – a personal accident plan which can be taken for self and family and covers hospital expenses, injuries, disability due to accident with a coverage range of 2.5 lakhs to 15 lakhs  Motor Insurance – motor insurance is offered to customers in partnership with HDFC Ergo and there are two types of motor insurance plans available: Commercial Vehicle Insurance – it provides comprehensive coverage for your commercial vehicle across 1600+ network garages in India Private Car Insurance – insurance coverage for your private car with cashless claims across 1600+ network garages. Moreover, the plan also offers discounts based on age and occupation  Two –Wheeler Insurance – an insurance plan for your two-wheeler with a provision of cashless claim across 1600+ network garages throughout the country.  Travel Insurance – an insurance plan for domestic and international travel be it for business or leisure purposes. The plan covers emergency medical expenses, emergency medical evacuation, repatriation of remains, emergency dental expenses, hospital cash, accidental death and permanent total disability while flying in a common carrier, personal accident, flight delay, loss of baggage and personal documents, delay of checked-in baggage, personal liability, financial emergency assistance, contingency travel benefits and hijack distress allowance. 47   Home Insurance – an insurance policy issued to protect the home as well as its contents. The plan covers risk against fire, lightning, explosion, flood, inundation, storm, riot, strike, earthquake, terrorism, burglary and theft with coverage for 1-5 years. Digital Services at HDFC Bank HDFC Bank provides a very good digital service to the customer for their transaction. Through these services the customer of the bank can also access their transaction. Digital services include- 1. Fund transfer HDFC Bank allows various categories of Fund Transfer options for safe and secure fund transfers which make banking easy. The fund transfer options are: E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient and supports fund transfers from any bank branch to any other bank branch anywhere in India. RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank fund transfer in real time which is speedier, faster and has no geographical limits. Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank form the comfort of one’s home and the payment is safe and charges at a negligible fee. IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank electronic fund transfer service which can be done even on Sundays or Bank holidays or late at night. 2. Online Banking With an increasing trend of internet usage, everything has been digitalized and the bank is not behind in this race. The bank offers the facility of Online banking to its customers which is safe and reduces unnecessary hassles of visiting the branch to carry out any transaction. Online banking service offered by HDFC Bank includes: 48 Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to- the-second account information, Net Banking manages customer’s account from the comfort of costumer’s mouse- anytime, anywhere. Say goodbye to long queues and paper work. Presenting one more way for Net Banking. Customer can now call the Phone Banking numbers in your city to register for Net banking. Net Banking offers a host of banking transactions from the comfort of the customer’s home. One can check the bank account balance, book a Fixed or Recurring Deposit, recharge the mobile or DTH Connection, paying off utility bills, paying taxes, applying for IPO, invest in Mutual Funds online to name a few. The process is fast and completely secured without having to worry about any fraud or theft. Bank industry leading service provides a host of features at customer finger-tips:  View Account Balances & statements  Transfer Funds between accounts  Create Fixed Deposits Online  Request a Demand Draft  Pay Bills  Order a cheque Book  Request stop payment on cheques  And lots more Benefit of Net Banking Internet Banking is the most convenient and powerful way to manage customer’s account. Net Banking is Real Time, giving them up-to-the-second details on customer’s account. It can be accessed anytime, from anywhere, giving them complete control over their finances. There are no queues to stand in, or turn to wait for. With Net Banking you are in control. 49 HDFC Bank’s Net Banking is secure. Using industry-standard technologies and infrastructure, our service gives you peace of mind. So next time you think of visiting your branch, switch on your PC instead. View the Net Banking Demo and see how easy it is it use. Credit Card Net Banking: Through this facility the customer can view the credit card activities online, pay the credit card bills, view Credit Card Statements online, know the unbilled transactions and get the complete account information Email statements: A savings or a current accountholders are eligible to get their account statements on their email id. The Savings accountholders get a monthly statement and the Current Accountholders get daily, weekly or monthly statements. The statements are free of cost and display all the relevant transactions of the relevant period. Loan accounts online: This feature enables the bank to provide post loan services to the customers. Loan customers of the bank can log in and view their loan summary, transaction history and loan account details. 3. Phone Banking The bank extends banking information to your phone where information is available at the end of a simple phone call. The customer can also call the bank and effect transactions over the phone. Transactions like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and cheque status, ordering cheque books, stopping cheque payments, credit card related queries can all be solved by a call to the bank’s phone banking division. Now your bank account is now just a phone call away. Through Phone Banking you can:  Check your account balance.  Enquire on the cheque status.  Have a mini statement faxed across to you.  Request for a cheque book / Account statement.  Enquire on your fixed deposits / TDS. 50   Open a fixed deposit  Request for Demand Draft / Managers Cheques.  Transfer funds amongst your linked accounts  Pay utility and HDFC Bank Credit Card bills.  Do stop cheque payments.  Report loss of your ATM /Debit Card.  Product information. 4. Mobile Banking By simply downloading the bank’s app on your smart phone, you can avail of over 75 transactions. The application is secure and fast. Mobile is now your bank! Now access your bank account and conduct a host of banking transactions and inquiries through your mobile, with our unique Mobile Banking services. Mobile Banking is a service that allows you to do banking transactions on your mobile phone without making a call, using the SMS facility. Uses of Mobile Banking: Mobile Banking service provides a host of features at your finger-tips through SMS:  Get your balance detail  Obtain your last 3 transactions details  Request a cheque book  Stop a cheque payment  Enquire cheque status  Request an account statement  Get fixed deposit detail  Pay your bills How does it work? 51 Mobile Banking works through a set of text massages (SMS). With SMS you can perform a wide range of query-based transaction from your Mobile Phone, without even making a call. All you need to do is to type in the specified code for the transaction as a text massage and send 5676712. See designated codes for GSM Phone. See designated codes for Reliance India mobile Phones. You will receive the response in form of a text message on your mobile phone screen within a few seconds. How is this different from making a call on mobile phone or using Phone Banking? The differences between making a call on mobile phone and sending a text message are as follows: You are not required to dial a number; you send a text message i.e. a coded message to 5676712 HDFC Bank does not charge anything for this service and there is no airtime involved. However, the Cellular Service Provider may levy a nominal charge for the SMS facility. In Mobile Banking, you actually see your banking transactions on your mobile phone screen as opposed to hearing a message through the phone. How do avail of this service? a) If you are opening an account with the bank, you can apply for MobileBanking through the account opening document. b) If you already have an account with the bank, you can apply for MobileBanking through the combined Direct Banking Channels form. You can download the form and call for a sales representative. Alternatively you can fill this form and hand it over to your nearest branch. 52 c) If you already have an account with the bank and if you are registered for Net Banking services, then you can register online using the 'Mobile Banking Registration' option available inside Net Banking. Does it cost anything? No, this service is brought to you FREE from HDFC Bank. Also, since you are using the text messaging service from your mobile phone, you do not incur any airtime charges in making a phone call from your mobile phone. However, the Cellular Service Provider may levy a nominal Value Added Services (VAS) charge for the SMS facility. 5. Insta Alerts Insta Alert is a service through which the bank can proactively inform customers about transactions / events that occurs in his bank account. This information can be given to the customers via SMS on their mobile phone, or through an email to their mail id or both. Alert could either be event based e.g. Salary Credit or Frequency based e.g. Weekly balance of account. Alerts acts as an important value add in the service that bank provide to the customers, as it will help in proactively informing the customers about their bank account related activities. This reduces the load from bank channels like Phone Banking or branches as customer does not need to call for getting information on Cr/Dr in accounts. Alerts also increase the Brand Recall of the bank in the minds of customers. SMS & Email – your account transactions also generate a SMS or email alert where any debit transaction, credit transaction and maintenance of account balance is alerted to the customer if registered. Types of alerts: The customer can register for any or all of the following alerts.  Debit transactions greater than Rs 5000 / 10000 / 200000 / 500000  Credit in account greater than Rs 5000 / 10000 / 200000 / 500000 53   Account balance below Rs 5000 / 10000 / 200000 / 500000  Weekly account balance  Salary Credits  Utility bill payment due Alerts All in all, company will be giving their employees an account that makes banking a pleasure for them. While corporate save time and money by directly crediting there employees’ salary nation-wide at one go. 6. Insta Query Insta query is a service that allows you to do a banking transaction on your mobile phone without making a call. You can do your transaction using the SMS facility What can I do using Insta Query?  Get your balance details  Obtain your last 3 transaction details  Request a cheque book  Stop a cheque payment  Enquire cheque status  Request an account statement  Get Fixed Deposit details  Request for Internet PIN re-generation How does it work? Insta Query works through a set of text messages (SMS). With SMS you can perform a wide range of query-based transactions from your mobile phone, without even making a call. All you need to do is to type in the specified code for the transaction as a text message and send it to 5676712. 54 You will receive the response in the form of a text message on your mobile phone screen within a few seconds 7. ATM Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost anytime. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN. Some financial institution and ATM owners charge a fee, particularly to consumers who don’t have accounts with them or on transactions at remote locations. Generally, ATMs must tell you they charge a fee and its amount on or at the terminal screen before you complete the transaction. Check the rules of our institution and ATMs you use to find out when or whether a fee is charged. It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by far the largest investment ever made in electronic self-service by financial institutions. Over US$ 40 billion has been invested in simply buying these machines and many times that in running them. There are now over 1.1 million machines operating in over 140 countries worldwide. The banks are losing the cashier’s checks, check cashing and even cash dispensing to the c-stores and grocery stores. They are asleep at the switch and watching more transactions walk away to convenience stores and supermarkets that provide 24 hour access and integrated transactions. ATMs do provide a larger set of functions, such as check cashing, ticket sales or money orders. We already know that cash dispensing as a dedicated function is a sustainable applications, the question is whether that application can be incorporated successfully into a more complex consumer product that offers multiple applications. 55 Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash options provide the facility of withdrawing prefixed amounts. Ultra Fast Cash opetion allows you to withdraw Rs.3000/- in one shot. Balance Enquiry: Know your ledger balance and available balance. Mini Statement: Get a printout of your last 8 transactions and your current balance. Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit both cash and cheques. / Cash deposited in ATMs will be credited to the account on the same day (provided cash is deposited before the clearing) and cheques are sent for clearing on the next working day. Funds Transfer: Transfer funds from one account to another linked account in the same branch. PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card. Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for payment of bills, making donations to temples / trusts, buying internet packs, airtime recharges for prepaid mobile phones and much more… Others: Request for a cheque book from ATMs and our concerned branch will dispatch it such that it reaches you within 10 working days. 56  DIGITAL INITIATIVES Private sector lender HDFC Bank launched nationwide campaign to position itself as a premier digital bank. Integrated, nationwide brand campaign “Har Zaroorat Poori Ho Chutki Mein, Bank Aapki Mutthi Mein... the campaign will reinforce bank's position as India's premier digital bank". Some initiatives are- PayZapp– A complete payment solution for all your needs. Chillr – App to enable customers to send money to any person on phone contact list. Digital Wallet -to transact on any website for HDFC Bank and non-HDFC Bank customers. HDFC Bank Watch Banking– A banking experience on a personalized wearable device taking consumer’s interaction with the bank to a whole new level. 30-Minute Auto Loan, 15-minute Two-Wheeler Loan. 10-second personal loan disbursement. 57 HDFC Bank’s PayZapp As smartphones are turning into wallets, several startups and banks have launched mobile applications to enable peer-to-peer transactions, micro-payments as well as payment solutions for merchants. 58 HDFC Bank, one of India's leading private sector bank, has now launched a comprehensive mobile payment solution that encompasses several mobile commerce scenarios. The latest initiative in HDFC Bank's digital banking offering christened #GoDigital, 'PayZapp', allows one-click payments for all your spends. PayZapp offers easy checkout using a single PIN without the need to enter credit/debit card details or a code or OTP for the second factor authentication. The wallet in the app is linked to your credit and debit card and acts as a virtual card - a virtual international card that you can use for any transactions across the globe. It doesn't have any transaction limit as well. Also, the app allows users to transfer money instantly to anybody using a mobile phone or an email ID. The app also integrates SmartBuy, a virtual mega marketplace from HDFC Bank that lists all deals and offers by leading e-Commerce portals as well as utility payment options. While HDFC Bank has managed to partner with leaders like Flipkart, Makemytrip, Cleartrip, BookMyShow, Expedia, GoIbibo, Yatra and Big Basket at the launch, the bank intends to get over 10,000 merchants onboard in next 45 days. But, you are limited in options when you're booking an airline ticket. For instance, since only partner OTAs would be available, but apart from straightforward discounts and promotions, you'd also save on the convenience charges. In a casual conversation, the bank stated that one is likely to save at least 10-15% on typical monthly purchases via SmartBuy. At the moment, the app is available only for HDFC Bank customers and for Android devices only. In the second phase - next three months - the service would open to other cardholders and also see the launch on iOS and Windows devices too. Soon, PayZapp would also introduce loyalty points, geo-targeted offers, QR code based payments and contactless payment mobile instruments. 59  Although still in beta, the app is pretty straightforward to use. You need to register using the mobilephone number already registered with the bank, fill in your details, and create a Personal Identification Number (PIN). Your mobile number works as your Login ID. Parag Rao, Business Head, Cards, Payment Products and Merchant Acquiring Services at HDFC Bank, said that the genesis of PayZapp stems from the 'banks are obsolete' comments. Every day an innovative startup is disrupting the space with convenient payment instruments and bringing financial inclusion, and HDFC Bank does not want to be considered as a 'dinosaur' despite several digital initiatives and industry firsts. Unlike a mobile wallet, there's no hassle of pre-payment or recharging. Also, there are no additional charges levied by the bank for purchases, fund transfers or bill payments using the app. HDFC Bank launches Chillr #GoDigital  Partners with MobME for instant money transfer app  App to enable customers to send money to any person on phone contact list 60  (L-R) Mr Nitin Chugh, Head, Digital Banking, HDFC Bank Mr. Dhiraj Relli, Branch Banking Head, HDFC Bank and Mr. Sony Joy, CEO Chillr, unveil the product at the launch HDFC Bank launched Chillr, a mobile app that allows users to instantly transfer money to any contact in their phonebook 24 hours a day, seven days a week. HDFC Bank has partnered with MobME, a Kochi-based technology firm, to launch this app. Chillr allows users to send money in 3 simple steps: 1. Choose the recipient from your list of Chillr contacts 2. Enter the amount to be transferred & a message to recipient 3. Enter your secret M-PIN & press PAY The recipient will instantly receive money in his / her bank account. Chillr is a first-of-its kind application that is linked directly to the customer’s bank account, so there is no need to worry about filling up a prepaid wallet. No passwords are stored on the phone and it can be accessed only with an M-PIN known to the customer alone. With this app, customers no longer have to ask for account information and wait for a set amount of time in order to add beneficiaries if they wish to transfer money. They can send and request money directly on their mobile. 61 With Chillr, HDFC Bank customers can transfer money to any person in India, once they download the app and register. The app is widely accessible as it works on Android and iOS operating systems. It will soon be launched for the Windows phone as well. The app is particularly useful for college students and young professionals. While dining at restaurants, customers, particularly youngsters can split the bill using this app. Parents, whose children are studying away from home in other cities can transfer money via the app. In the near future it will also allow users to pay utility bills and various merchants via the mobile. Chillr is also an important tool for financial inclusion in rural markets, allowing migrant workers to remit money to family back home in a secure manner. HDFC Bank has also piloted the use of Chillr for its Sustainable Livelihood Initiative (SLI), a programme that reaches out to people at the bottom of the pyramid by providing them with livelihood finance and skills training. The participants running small businesses used the app to make payments to employees, avoiding the hassle of travelling to the nearest ATM to withdraw cash. “Customer convenience is central to our concept of Digital. This Chillr app will benefit various segments of people in the society. From students to young professionals, from the migrant workers in cities to customers in rural India, this app gives the convenience to send and receive money using your mobile phone in secured manner. This app is one more important step by the Bank to leverage technology and digital to offer banking services anytime and anywhere” – Nitin Chugh, Head, Digital Banking, HDFC Bank Chillr is the latest initiative in HDFC Bank’s digital banking offering christened GoDigital. This campaign began on the banks of the Varanasi last year, with the launch of its ‘Bank Aap Ki Muththi Mein’ offering, which literally converts the mobile phone into a bank branch. Since then the bank has launched a host of innovative digital initiatives. With Chillr, HDFC Bank is adding to its digital product suite. 62  HDFC Bank to introduce Digital Wallet #GoDigital  Available for HDFC Bank customers and all other debit and credit card holders  Accessible from mobile app and online, as well as enabled with NFC for contactless payments HDFC Bank is all set to launch a digital wallet and an electronic marketplace for various online merchants. Once an account holder or credit card holder registers for a digital wallet, he can transact on most websites using only his wallet credentials. The wallet will not be restricted to HDFC Bank customers, but also allow non-HDFC Bank debit and credit card holders. HDFC Bank is the market leader both as a card issuer and in processing card payments for merchants, and accounts 40% of e-commerce transactions. With the shift from desktops to mobile phone, mobile devices account for half of the purchases in terms of number of transactions. 63 However, the complexity of entering card details onto a phone screen also leads to high level of failed transactions. A digital wallet meets Reserve Bank of India’s requirement of two-factor authentication but does away with the hassle of filling card details every time. Also, the digital wallet – which can be accessed from a mobile app or online – will be enabled for contactless payment using Near Field Communication (NFC) by flashing the phone in front of readers that can accept NFC payments. Also, the customers will not need to store their card details on third-party websites, and as a bank, the details are in any case entrusted with the bank. In a standard credit card purchase, the number of steps can go up to 11-12 including filling in the 16-digit card number, name, expiry date, CVV and other details. Our digital wallet will enable the transaction to be completed in two steps, which substantially cuts down the failure rate on mobile phone purchases, which is as high as 50%. – Parag Rao, Senior EVP and Head (Card Payment Products), HDFC Bank 64 According to industry estimates, by 2020, 30% of all digital payments will be done using a digital wallet. HDFC Bank’s new offering, in line with the Go Digital initiative, attempts to offer the “The future of mobile payments” HDFC Bank Watch Banking A Step forward in our journey – Go Digital: Bank Aapki Mutthi Mein In December 2014, HDFC Bank launched its ‘Go Digital – Bank aapki mutthi mein’ campaign on the banks of the Varanasi river with an aim to provide holistic banking services in all possible digital channels. Today, HDFC Bank provides 175+ banking transactions through its Net banking platform and 80+ transactions through Mobile banking (Mobile and Tablet apps). HDFC Bank thought that it was the opportune moment to introduce a new category in digital banking, leveraging the emerging wearable platforms, and becoming the first bank in India to launch Watch banking for Apple Watch. 65 Why Apple Watch? HDFC Bank is starting with the Apple Watch and aims to provide banking services through all wearable devices across platforms like iOS and Android. We have started with Apple Watch since it is designed from ground up keeping in mind what the user would want to do with such a device in a jiffy. HDFC Bank’s App has been made keeping this in mind and the features are chosen accordingly. Features of HDFC Bank Watch Banking HDFC Bank will provide a total of 10 banking transactions in the current launch phase. Some of them being View Account Information, Bill Payments, Recharges, Hot listing facilities, locate nearest branch/ATM/offer, request statement/chequebook etc. Moreover, HDFC Bank’s Watch Banking does not require our customers to download a separate App. Customers can activate Watch Banking from an upgraded version of HDFC Bank’s Mobile Banking App itself! Security features and how will it work? HDFC Bank brings in the same level of high security of its Mobile Banking App to its Watch Banking experience. 66  Any user information or data flow that happens, it if from the mobile phone to the bank’s secure servers. The watch is merely a projection device.  For added security, there is a watch banking PIN that the user himself sets during the one time set-up process. This can be done only after entering his customer id and password known only to the user.  Additionally the Apple watch itself has a passcode lock just like other iOS devices. HDFC Bank launches ‘Bank Aapki Muththi Mein’ – a bouquet of transactions on mobile #GoDigital  Technology agnostic, runs on all popular mobile platforms  Largest offering of its kind in the country with over 75 banking transactions  55% of all transactions at HDFC Bank are conducted through digital channels  Allows customers to book FDs, RDs, pay bills, taxes, buy insurance, mutual funds, even loans 67  HDFC Bank today launched Bank Aap Ki Muththi Mein, an offering that literally turns a mobile phone into a bank branch. A bank branch the size of your palm that is with you round-the-clock, wherever you are. With over 75 transactions – all a touch away – it offers the customer the widest range of transactions conceivable. These are both financial and non-financial transactions that he needs in his daily life for which he would have to visit a branch, or an ATM. It is by far the largest offering of its kind by any bank in India. Besides essential transactions such as booking fixed- and recurring deposits, bill and tax payments, buying insurance and mutual funds, the offering will also allow customers – for the first time in the country – to buy instantly all kind of loans. It also offers them 68 fully customized, location-specific promotions, offers/deals on shopping, dining, movies and entertainment. With Bank Aap Ki Muththi Mein, you can do everything other than access your locker, and deposit or withdraw cash. Customer convenience is central to our concept of Digital. And, there is no bigger convenience than bringing your bank to the palm of your hand. We are very excited to unveil our Bank Aap Ki Muththi Mein offering and with it world class experience of banking to millions of our countrymen. Mr. Nitin Chugh, Head – Digital Banking, HDFC Bank Part of the Bank’s digital banking offering christened GoDigital, Bank Aap Ki Muththi Mein is technology agnostic and runs on all mobile devices popular technology platforms support. As of September 2014, India had over 900 million mobile users in the country but only 40 million mobile banking customers. Bank Aap Ki Muththi Mein works on both a smart phone as well as the basic phone that supports internet browsing. For phones that do not support internet browsing, there’s sms banking and missed-call banking. All that a customer needs to do is send a text to or call a toll free number to know his account balance, get a mini statement, request a check book or detailed account statement. 69 Today, 55% of all transactions at HDFC Bank are conducted through digital channels. DEPARTMENTS AT HDFC BANK Marketing Department 70 Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been pushing result-oriented local and digital marketing since he joined India's second-largest private bank last year. HDFC Bank uses technology-led marketing to keep costs low. He launched some 4,000 campaigns and 400 analytical solutions (a 40% y-o-y increase) in the past year to bring in more customers to the bank and aggressively stepped up its digital presence to increase business from this channel by over 60%. Jain, a keen trekker who has run three half marathons (and wishes he had time for more), is pushing his colleagues to shift away from a centralised marketing function, and think local by setting up local marketing teams to cater to specific needs of a community or locality. "I want our marketers to focus on the catchment areas around branches and run campaigns to suit residents or businesses there," he says. His result-oriented approach is something his rivals and industry watchers admire. "He's an objective-driven marketer who has been able to effectively leverage technology and digital programmes," says Sanjay Jain, chief marketing officer of Reliance Capital. HDFC's Jain stands out for his focus on return on investment and not spread across many hard-to-measure campaigns, he says. Ajay Kelkar, COO of customer relationship solutions firm Hansa Cequity, says Kartik Jain uses technology and digital media more effectively than most of his peers. "This 71 gives the bank an opportunity to get one view of the customer and, in a muted economy, opens up better opportunities to cross sell products," he says. As marketers become more concerned with cost, the idea of highly visible above-the-line advertising rarely appeals to Jain. "We haven't done a big-ticket campaign in 2-3 years," he says. Instead, the ads will be targeted, like its Infineon credit card ads pegged at big spenders. While he wouldn't disclose his marketing budget, Jain says HDFC Bank spends less than one-fifth of it on above-the-line activities, with the rest reserved for below-the-line campaigns. "Marketing is about customer engagement that leads to measurable business results," he says. While it's a challenge to get close enough to customers to garner key insights for new campaigns, marketers like Jain are increasingly under pressure to reduce spends in a slowing economy. Jain is leaning heavily on digital campaigns to proselytise HDFC Bank. Under him, the bank's website has become the most visited private bank website and the most responsive bank on Facebook, according to a survey by Social Bakers in May 2012. "With increasing penetration of internet and mobile, digital marketing has become an inexorable element of marketing...this is especially true in the case of financial services, where products and services cannot be distributed efficiently without the use of technology," Jain says. Parag Rao, who heads HDFC Bank's credit card business, says while Jain's overview across the bank's businesses has allowed him to synergise marketing campaigns, his data analytics team is a welcome bonus. Finance Department 72 Finance department is broadly concerned with the acquisition of funds by a business firm.  How large should be the firm and how fast should it grow?  What should be the mix of firm’s assets?  What should be the mix of the firm’s financing?  How should the firm analysis, plan, and control its financial affairs. Finance is the lifeblood of the organization. Finance management as an integral part of the overall management is not a totally independent area. It draws heavily on related subjects and fields of study namely economics, accounting, marketing, production, and quantitative methods. Following are the main features of financial management.  The focus of financial management was mainly on certain episodic event like formation, issuance of capital, major expansion, merger, re-organization, and liquidation in the life cycle of the firm.  Approach was mainly descriptive and institutional. The instrument of financing, the institution and procedures used in capital market, and the legal aspect of financial events formed the core of financial management.  The outsider’s point of viewed mainly from the point of investment bankers, leaders and other outside interests. According to HDFC BANK Ltd.’s AGM on JUNE 1, 2009: -  Issued 50 crore Redeemable Subordinated Bonds to increase Capital Adequacy Ratio, which had come down to 11.09% from 12.19%.  HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on date of AGM total outlets increased to 134. Bank has plans to increase this number to 160 by year-end. Ten new outlets are planned for Maharashtra.  Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in March 2001. These advances were made to corporates with "AAA" rating for short tenure and Bank has recovered these amounts in the current year.  Money at call and short notice with banks went up from Rs 487 crore in March to Rs 1,357 crore in March 2001. Bank found this opportunity giving good returns and funds were parked with overseas accounts.  All HDFC Bank branches and head office undergo Concurrent Audit.  HDFC Bank is the largest issuer of debit cards in the country. 73   HDFC’s reported a 80% increase in top line in FY 2001 and 75% increase in bottom line. The reason for less than proportionate growth in Net Profit is due to investments made for future growth. Bank sees these years as consolidation period.  HDFC Bank serves 5 lakh accounts in Demat Services segment. Total number of employees for Depository services is 142 and this segment contributed Rs 7 crore to Net Profit.  Out of the stipulated norm of 40% advances to priority sector by RBI, HDFC Bank has made 15% advances to Agriculture sector. These include loans to farmers and investments in NABARD and Rural Electrification. Human Resource Department “Human Resource Management function that helps managers recruit, select, train and develop members for an organization. Obviously, HRM is concerned with the people’s dimension in organizations. 74 Work force of an Organization is one of the most important inputs of components. It is said that people are our single most important assets. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing psychology, behaviour and attitudes of men and women at work, in all business concerns, there is one common element. I.e. Human personnel function, i.e., manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work- management of managers and management of workers. Personnel function is particularly interested in personnel relationship and interaction of employees-human relations. Mandeep Maitra is the Country Head HR at HDFC Bank. She has done her B.A. Psychology from lady Shriram Colege, Delhi and MBA HR from Tata Institute of Social Sutdies. The HR department at HDFC bank has 54 people, including the trainers. The HR department is present in Mumbai, Chennai, Delhi, Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow. All people here in HR are MBAs, except for those handling HR operations Responsibilities of Human Resource Department.  HRD maintain daily attendance record through branch manager via E-mail.  Take decisions for approval regarding leave notes.  He takes the decision related to the recruitment, selection and training of the candidates. He talks to the consultant related to the recruitment of the qualified candidates. He also does screening of the candidates, shortlist the candidate and takes the first round of the interview. 75  He maintains the database of the candidates to come for an interview. He also maintains personal file of each employee. He also completes the joining formalities of each new employee.  They are taking surprising visit in every branch and collect information about employees.  He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager. Human Resource planning "Human resource planning is the process of forecasting a firm's future demand for and supply of the right type of people in the fight number". The planning process: HRP essentially involve forecasting personnel needs, assessing personnel supply and matching demand supply actors through personnel related programmes. The planning process is influenced by overall organizational objectives and the environment of business. Importance of HRP 1. Future Personnel Need 2. Coping with Change 3. Creating Highly Talented Personnel 4. protection of Weaker Section 5. To adopt International Strategies 6. Foundation for Personnel Functions 7. Increasing Investment in Human Resource 8. Resistance to Change and Move Recruitment Recruitment is a process of searching for prospective candidates for the given job in the industry. As we know it is very important for an industrial concerns to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed. Every organization needs employee time by time because of 76 promotion or retirement of an employee. For this purpose an organization need to search for the right candidate. And so it needs to encourage this type of right candidates whenever they require. Sources of Recruitment  Personal data of candidates and data bank maintain by the HR. department  Campus Recruitment.  Company’s own website.  Placement consultants.  Advertisement in the news papers like Times of India, Gujarat Samachar.  Employee reference. Recruitment Process Applica Profil Shortli Screeni Intervie nt pool e st ng w Check E-Recruiting Perhaps no method has ever had as revolutionary an effect on recruitment practices as the internet. There are respective company websites devoted in some manner to job posing activities. Currently, employers can electronically screen candidate's soft attributes, direct potential hires to a special website for online skill assessment. Conduct 77 background checks over the internet, interview candidates via videoconferencing. And manage the entire process with web-based software. Companies benefit immensely through cost savings. Speed enhancement and worldwide candidate reach which the internet offers. From the job seekers perspective the internet allows for searches over a broader array of geographic and company posting than was possible before. Problems notwithstanding, both job givers as well as job seekers find internet as the most effective source of recruiting and its usage in the days to come will be all pervasive Selection  Selection is the process of taking individuals out of the pool of job applicants with requisite qualifications and competence to fill jobs in the organization. It is define as the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.  Selection is based on probation base, they are taking experienced person for 6 month’s probation and for fresher the probation period is 1 year.  While the selection of the senior level post, is taken by head office at Mumbai. Selection Process : Telephonic - interview Selection Test Final Interview Reference & Background Analysis Selection Decision Employment Agreement Offer Letter Medical Clarification RECRUITMENT & SELECTION HDFC bank's campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI, SCMHRD, etc and not only IIM'S. They go to 70 business schools, covering far away places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institute understand the psychology of the up country customers and are ambitious about working 78 for private sector banks. They hire B.Com, M.Com, engineers and other graduates, as well as MBA's. Today the requirement is not just globalization, but localization. To achieve this they hire people from various towns and cities. They are even hiring managers from rural background. Thehas a need to locate people in 500 + branches across 300 cities. I come to know in my observation that bank often don't recruit from IIMs. When I asked about this , then the senior manager says that the bank is able to attract IIM graduates after they have worked for 3 to 5 years of work experience and they have experienced the real world and are likely to be less disillusioned. They take screening very seriously, though they don't use detectives. They do speak to current employers and ask question about performance and integrity. After the completion of recruitment process, HDFC bank starts it selection process according to its schedule to the selection of deserved candidates. Training and Development  Training aims at increasing the aptitudes, skills and abilities of workers to perform specific job. It makes employees more effective and skillful. In present dynamic world of business training is more important there is an ever present need for training men. So that new and changed techniques may be adopted. A new and changed technique may be taken as an advantages and improvement affected in the old methods.  Training is learning experience that seeks relatively permanent change in an individual that will improve his/her ability to perform on the job.  They provide “on the job” training to their employees in the branch as they select these employees for selling various products of bank by direct marketing. Whenever they select new candidates for any post, they use to give them on the job work.  In case of sales persons to distribute their various products, in the beginning the person has to work under the observation of his senior then the have to go in market to have their own experience. 79  The time for training program for the candidate is depends up on the relevant position of his work area. They also provide training related to customer care and communication. Performance Appraisal  An organization’s goals can be achieve only when people put in their best efforts. Performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. It is define as the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development.  To appraise the performance of the employee they have developed a credit system on the basis of the given target to the employee. After appraising the performance of the employee they put the grade of each employee in the following grade criteria. Employee Remuneration and Incentive Payments  Remuneration is the compensation an employee receives in return for his/her contribution to the organization. Remuneration occupies an important place in the life of an employee.  At HDFC, remuneration of an employee comprises – wages and salary, incentives. Wages and Salary  A part from various incentives and benefits, the personnel are compensated only in terms of wages and salaries. A proper compensation in terms of this is necessary for motivation employees for their continuous  Improved performance. For all this, it is required that wages and salaries are provided well by organization. 80  Wages and salary refers to the establishment and implementation of sound policies and practices of employee’s compensation. A wage and salary is the remuneration paid for the service of labor in production periodically to an employee. The bank is in service industry so the salary is given on monthly basis. They use to hire certain salesman on commission base and they are provided their salaries on commission base. While other permanent staff are being given monthly salaries. As HDFC bank is reputed bank in market the pay scale are as per the standard.  Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving attractive incentives as per the target. The salary of branch manager is around 35000 per month. Incentive In HDFC, employees get incentives on the basis of the target given to each employee and their area of work. They have developed the incentive structure for the employees on the basis of point system. All the employees get the incentive in the form cash reward. BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE HDFC BANK  Helps the individual in marketing better decisions and effective problem solving  Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized.  Aids in encouraging and achieving self-development and self-confidence  Helps a person handle stress, tension, frustration and conflict  Provides information for improving leadership, knowledge, communication skills and attitudes  Increase job satisfaction and recognition  Moves a person towards personal goals while improving interactive skills  Satisfies personal needs of the trainer 81  Provides the trainee an avenue for growth and a say in his own futur  Develops a sense of growth in learning  Helps a person develop speaking and listening skills  Helps eliminate fear in attempting new tasks Employees benefit The employees of HDFC automatically become HDFC bank salary account Holders with special benefit and privileges and receive instant salary credit. The benefit include international debit card, corporate card with individual liability (CCIL), access to phone banking and internet banking, demat accounts, and host of other services to complement their savings account. Here are some of the features of HDFC Bank’s salary account. BEST PRACTICES The most important thing in HR is to hold the confidence of people. Talent retention is a challenge today. Another challenge is managing expectations of youngsters, who are looking for fast tracking their career and want exposure quickly, they may not be lured by money alone, but the profile that they work for. Bank gives ample opportunity to those who seek job rotation, If they have a new opening, they advertise it internally. Banks philosophy is that it is better to lose a person to another department than to another bank. Their Performance management system is their 'signature' system. They have one of the lowest rates of attrition. Middle management onwards their salaries here are good. Women have been rising up the ranks in the bank. At the junior level, over 33% of the workforce in consumer and retail banking comprises of women. In the senior levels, it is about 12% and in the top management, it is about 6 to 9%. This organization was very cost conscious. Today they have foreign tours, parties as national and regional levels, award nights and outings. As an organization they have started celebrating success. 82  Swot Analysis of HDFC Bank Strengths  HDFC bank is the second largest private banking sector in India having 2,201 branches and 7,110 ATM’s. 83  HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customers through Telephone banking.  The bank’s ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be the most preferred card for shopping and online transactions.  HDFC bank has the high degree of customer satisfaction when compared to other private banks.  The attrition rate in HDFC is low and it is one of the best places to work in private banking sector.  HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia country awards etc.  HDFC has good financial advisors in terms of guiding customers towards right investments . Weaknesses  HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct competitor is expanding in rural market.  HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in terms of banking services.  HDFC lacks in aggressive marketing strategies like ICICI.  The bank focuses mostly on high end clients.  Some of the bank’s product categories lack in performance and doesn’t have reach in the market.  The share prices of HDFC are often fluctuating causing uncertainty for the investors. Opportunities 84  HDFC bank has better asset quality parameters over government banks, hence the profit growth is likely to increase.  The companies in large and SME are growing at very fast pace. HDFC has good reputation in terms of maintaining corporate salary accounts.  HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high when compared to government banks.  HDFC has very good opportunities in abroad.  Greater scope for acquisitions and strategic alliances due to strong financial position. Threats  HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight variation it’s not a good sign for the financial health of the bank.  The non banking financial companies and new age banks are increasing in India.  The HDFC is not able to expand its market share as ICICI imposes major threat.  The government banks are trying to modernize to compete with private banks.  RBI has opened up to 74% for foreign banks to invest in Indian market. OBJECTIVE OF THE STUDY  To identify the awareness and usage of Digital-Banking. 85  To study the impact of digitalization.  To know how much banking services has been improved.  To study the satisfaction level of the respondents. LITERATURE REVIEW 86 Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds that- The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and 27 public sector banks where majority ownership is included by the government. During the reform period, the financial system permitted the banks to select their lending rates and deposits, and also authorizes higher disclosure to make sure of large transparency in the balance sheets. As a result of reforms in the banking sector the share of entire assets of public sector banks was decreased to 75 percent from 90 percent. In the private sector, the new banks entry diminished the concentration of assets which further might have made the competition stronger which leads to more profitability, productivity, and enhancing efficiency. Dr. Richard Nyangosi (2014) in his study on Topic ‘Digitizing Banking Services’ finds that- Internet and mobile technologies of recent years have gained momentum and are impacting the working of every process including financial services. Financial Service providers including banks are turning their necks toward the wave of these Technologies. Their findings includes- Adoption of cell phone banking. Out of the respondents surveyed, 26 percent had adopted cell phone banking in India out of those who adopted, mostly were young aged. This service too like any other e-banking services is gaining momentum as customers are finding it easy to bank 24x7. Using different common E- banking services provided through a cell phone, which included: balance inquiry, requesting cheque book, know last few transactions, requesting bank statement, stop payment of cheque, and bill payment. Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample adopted Internet Banking and 36.8 did not adopt. Perceived usefulness of SMS banking, financial products through cell phones have proved to be useful to both customers and providers in recent times. Customers find it easy, convenient, and efficient to transact conventional banking services which are non- monetary in nature such as balance enquiry, transfer of funds, change password etc through a mobile phone. 87 Malhotra, Pooja & Singh, (2010) This study is an attempt to present the present status of Internet banking in India and the extent of Internet banking services offered by Internet banks. In addition, it seeks to examine the factors affecting the extent of Internet banking services. The data for this study are based on a survey of bank websites explored during July 2008. The sample consists of 82 banks operating in India at 31 March 2007. Multiple regression technique is employed to explore the determinants of the extent of Internet banking services. The results show that the private and foreign Internet banks have performed well in offering a wider range and more advanced services of Internet banking in comparison with public sector banks. Among the determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet banking, financing pattern and ownership of the bank are found to be significant. The primary limitation of the study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc.), which may have an effect on the decision of the banks to offer a wide range of Internet banking services. The purpose of the study is to help fill significant gaps in knowledge about the Internet banking landscape in India. The findings are expected to be of great use to the government, regulators, commercial banks, and other financial institutions, e.g. co-operative banks planning to offer Internet banking, bank customers and researchers. The bankers as well as society at large will come to know where the banks lag in terms of adoption of Internet banking and in providing different products and services. An understanding of the factors affecting the extent of Internet banking services is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Moreover, this paper contributes to the empirical literature on diffusion of financial innovations, particularly Internet banking, in a developing country, i.e. India. Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding e-banking services. A survey of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab. The respondents were equally divided among three bank 88 groups namely, public sector, private sector and foreign banks. The present study investigates the perceptions of the bank customers regarding necessity of e-banking services, quality of e-banking services, bank frauds, future of e-banking, preference of bank customers regarding banks, comparative study of banking services in various bank groups, preferences regarding use of e-channels and problems faced by e-bank customers. The major finding of this study is that customers of all bank groups are interested in e- banking services, but at the same time are facing problems like, inadequate knowledge, poor network, lack of infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account. Keeping in mind these problems faced by bank customers, this paper frames some strategies like customer education, seminars/meetings, proper network and infrastructure facilities, online shopping facilities, proper working and installation of ATM machines, etc., to enhance e-banking services. Majority of professionals and business class customers as well as highly educated and less educated customers also feel that e-banking has improved the quality of customer services in banks. Azouzi, D. (2009) this paper aims to check if the current and prompt technological revolution altering the whole world has crucial impacts on the Tunisian banking sector. Particularly, this study seeks some clues on which we can rely in order to understand the customers' behavior regarding the adoption of electronic banking. To achieve this purpose, an empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting the Customer’s attitude toward e-banking. For instance; age, gender and educational qualifications seem to be important and they split up the group into electronic banking adopters and traditional banking defenders and so, they have significant influence on the customers' adoption of e-banking. Furthermore, this study shows that despite the presidential incentives and in spite of being fully aware of the e- banking's benefits, numerous respondents are still using the conventional banking. It is worthy to mention that the fear of loss because of transactions errors or hackers plays a Significant role in alienating Tunisian customers from online banking. 89 RESEARCH METHODOLOGY 90 Research methodology is the process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques. Research Design A research design serves as a bridge between what has been established (the research objectives) and how to accomplish these objectives. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. More explicitly, the design decisions happen to be in respect of: i) What is the study about? ii) Why is the study being made? iii) Where will the study be carried out? iv) What type of data is required? v) Where can be the required data found? vi) What period of time will the study include? vii) What will be the sample design? viii) What technique of data collection will be used? ix) How will the data be analyzed? x) In what style will the report be prepared? The function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. But how all these can be achieved depends mainly on the research purpose. Research Type: In this report I have used Descriptive research technique. 91 Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables. Sampling Design: For my survey I have used Convenience sampling technique. Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research. UNIVERSE - In accordance to the specified research universe is Lucknow city. Sources of Data Collection: PRIMARY DATA is the data which has been collected through personal contact.  Through Questionnaire – Questionnaire is a written set of questions, the answers to which are recorded by the respondents.  Through Personal Interaction – In personal interaction an interviewer ask questions in a face to face contact to the other person. SECONDARY DATA is the data which are available in the form of fact and figures. The sources of secondary data are:  Websites  Magazines  Articles Data Collection Tools: 92 For my survey I have used Pie chart, Graphs. Methods of Data Collection: For my survey I have collected data through Questionnaire. DATA ANALYSIS AND INTERPRETATION Q1. What type of account you have in HDFC Bank? 93  3%2% 15% Savings Account Current Account 80% Salary Account Other Interpretation: Out of 100 respondents that I have taken for my survey 80% respondents have saving account, 15% have current account, 3% have salary account and 2% respondents have other account which include NRI and fixed deposit account in the bank. It means that the bank has a very good amount of saving account customers as compare to the other account. 94 Q2. Since how long you are having account in HDFC Bank? 15% 33% 0-1 Year 27% 1-2 Years 25% 2-3 Years 3 Years & above Interpretation: Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and more. Q3. According to you what is more convenient way for banking? 10% Branch Banking 90% Digital Banking Interpretation: When the customers are asked about their preference between branch banking and digital banking 90% customers preferred digital banking and 10% customers preferred branch banking as a mode of their banking transaction. Above graph reveals their preferences for the both. 95 Q4. Do you use Digital Banking Services of HDFC Bank? Yes No 100% Interpretation: Out of the 100 respondents all the 100% of them use digital banking services of HDFC bank. Q5. What are your reasons for choosing our Digital banking services? 100% 90% 80% 70% 60% 60 80 68 50% 40% 30% 20% 10% 0 0% Interpretation: 96 Out of the 100 respondents 60% use digital banking services for convenience, 80% use to save time and 68% use due to 24 hour access. Q6. Which Digital banking services do you use at HDFC Bank? 100% 90% 80% 70% 60% 75 60 24 4 100 50% 40% 30% 20% 10% 0% Interpretation: Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile banking, 24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and all the 100% of respondents use ATM service. Q7. For what purpose you use Digital banking services at HDFC Bank? 100% 80% 60% 90 45 78 36 40% 20% 0% 0 0 ry er ls ai ue sf et an Q D Tr d e te ey nc la on la re Ba M an Lo Interpretation: Out of the 100 respondents 90% use digital banking services for money transfer, 45% use to pay bill, 78% use to get balance details, 36% use for recharge. 97 Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital? 45% 55% Yes No Interpretation: As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank Go digital initiative while 55% of them are not aware. Q9. Which Digital Initiative of HDFC you know about? 100% 90% 80% 70% 60% 88.88 78.33 28.88 44.44 50% 40% 30% 20% 10% 0% Interpretation: 98 Out of 100 respondents that I have taken for my survey approximately 55% customers do not know about Go digital initiative because they are not much aware about this facility. 45% of them are aware about some initiative and out of those 45% customers 88.88% know about PayZaap, 78.33% know about Chillr, 28.88% know about Digital wallet, and 44.44% know about Watch banking. Q10. Do you use HDFC Bank Go Digital banking services? 40% 60% Yes No Interpretation: Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and 60% do not use it. Q11. Do you think HDFC Bank banking services has improved through Digitalization? 2% Yes No 98% 99 Interpretation: Out of 100 respondents 98% thinks that digitalization improved the banking services of HDFC bank and 2% of the respondents do not think that digitalization has improved the banking services. Q12. Please rate that how much Digitalization has improved the Banking Services? 18% 14% 5 Stars 4 StARS 3 Stars 68% 2 Stars 1 Star Interpretation: Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the banking services, 68% rate it 4 stars, and 18% rate 3 stars. Q13. What is your level of satisfaction with HDFC Bank Digital Services? 100  2% 33% Fully Satisfied Satisfied 65% Somewhat satisfied Not satisfied Interpretation: Satisfaction level is very important for the direct banking channel of bank. In above graph we can see that 65% Customers are satisfied with HDFC bank digital services, 33% customers are fully satisfied and only 2% are somewhat satisfied. It indicates that HDFC bank customers have high satisfaction level from the services they get. 101  FINDINGS In our study we find that 100% respondents are aware with the ATM facility use this facility and around 75% of them use internet banking, 60% use mobile banking, 24% use phone banking. But the awareness of Insta query is only 4%. Most of customers believe that Digital banking is more convenient way for banking and most of them use digital banking in order to save time and also as it has 24 hour access. Customers use digital banking services at HDFC bank mostly for money transfer, to pay bill, for recharge, online shopping. HDFC bank provides very quick services to its customers. Most of respondents who are not using the Go Digital initiatives of the bank, it is because they are not much aware about the initiatives of the bank. The customer are using the digital banking services for few purpose it means the use of the digital banking channel is limited for few transaction. Most of respondent who are using the digital banking services are satisfied with the service of the bank for the particular digital banking service. The response of the respondents indicates that digitalization has a good and positive impact on the banking services. According to the response of the respondents it shows that digitalization improved the banking services very much for the customers. 102 CONCLUSION SUGGESTION 103  Though the Digital Banking is an effective tool but many of the customers are not using it due to the awareness of the particular digital banking services. Now the responsibility lies with the bank to make them aware about various Digital banking channels through publicity and advertisement  Bank should educate the customer about the usage of digital banking services and also about their advantages. This would prompt the customers to shift from traditional brick and mortar channel.  It has been observed that even the customers who know about digital banking services are not using this facility due to misconception and lack of information. These customers should be targeted by the bank and must be convinced to use the same.  The result of the study show that customers are using only few services of various digital banking services - for example ATM for view balance and cash withdrawal etc. Though digital banking provides a full gamut of various services. Customer should be made aware of these services and must be encouraged to use the same.  The bank may improve existing facilities in rural areas through advertising, spread awareness about computer and internet banking.  The best way to motivate the customer to use digital banking is more efficient customer care service. LIMITATIONS 104 There are certain limitations of this project report which are listed below.  This study is limited only to the customers of the HDFC bank, Lucknow.  The responses of the customers may be biased.  Sample size is limited to 100. BIBLOGRAPHY 105 APPENDIX 106  Questionnaire NAME…………………………………… GENDER……………………………….. AGE…………………………………… OCCUPATION……………………...... EMAIL ID……………………………… Q1. What type of account you have in HDFC Bank? Savings account Current account Salary account other (please specify) _ _ _ _ _ Q2. Since how long you are having account in HDFC Bank? 0 – 1 year 1 – 2 years 2 - 3 years 3 years & above Q3. According to you what is more convenient way for banking? Branch Banking Digital Banking Q4. Do you use Digital Banking Services of HDFC Bank? 107  Yes No Q5. What are your reasons for choosing our Digital banking services? Convenience To save time 24 hour access Security reasons Q6. Which Digital banking services do you use at HDFC Bank? Internet Banking Mobile Banking Phone Banking Insta Alerts/SMS/Query ATM Q7. For what purpose you use Digital banking services at HDFC Bank? Money Transfer Pay Bill Balance Details Recharge Loan related Query Order Cheque book other (please specify) _ _ _ _ Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital? Yes No Q9. Which Digital Initiative of HDFC you know about? 108  Pay Zapp Chillr Digital Wallet Watch Banking Q10. Do you use HDFC Bank Go Digital banking services? Yes No Q11. Do you think HDFC Bank banking services has improved through Digitalization? Yes No Q12. Please rate that how much Digitalization has improved the Banking Services? 5 Stars 4 Stars 3 Stars 2 Stars 1 Star Q13. What is your level of satisfaction with HDFC Bank Digital Services? Fully Satisfied Satisfied Somewhat Satisfied Not Satisfied Q14. Any suggestions or recommendation to HDFC Bank? 109