1

PROJECT
SIKKIM MANIPAL UNIVERSITY
LEARNING CENTRE CODE: 01513
PLACE - KOLKATA (West Bengal)

AN INSIGHT TO THE
CUSTOMER RELATIONSHIP MANAGEMENT

Of

HDFC BANK LTD.

(A Division of HDFC LTD.)

Research Conducted By :PINTU BOSE

Student :Sikkim Manipal University

Course :MBA

Semester :Fourth (4TH)

Specialization :Marketing
S.M.U Roll No. :520762509
Learning Centre :2/1C Townshend Road,
Kolkata – 700 025.APEX,
I.D NO - 270072121
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PROJECT FINAL REPORT

ON

CUSTOMER RELATIONSHIP MANAGEMENT

BY

PINTU BOSE

AT
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PROJECT TITLE

A project report on

CUSTOMER RELATIONSHIP MANAGEMENT

OF

COMPANY GUIDE
================
Mr. Sunandit Chatterjee
Branch Manager
Kolkata

Prepared by :

Pintu Bose
Roll no. 520762509, Sem-Fourth(4)
APEX(KOLKATA)
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Customer Relationship Management (CRM)

What is CRM?

CRM stands for Customer Relationship

Management. It is a process or
methodology used to learn more about
customers' needs and behaviors in order to
develop stronger relationships with them.
There are many technological components
to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more
useful way to think about CRM is as a
process that will help bring together lots of
pieces of information about customers,
sales, marketing effectiveness,
responsiveness and market trends.

CRM helps businesses use technology and

human resources to gain insight into the
behavior of customers and the value of
those customers.
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CRM Software
Sales Force Automation

Contact management
Contact management software stores,
tracks and manages contacts, leads of an
enterprise.

Lead management
Enterprise Lead management software
enables an organization to manage, track
and forecast sales leads. Also helps
understand and improve conversion rates.

eCRM or Web based CRM

Self Service CRM

Self service CRM (eCRM) software Enables
web based customer interaction, automation
of email, call logs, web site analytics,
campaign management.

Survey Management Software

Survey Software automates an enterprise's
Electronic Surveys, Polls, Questionnaires
and enables understand customer
preferences.

Customer Service

Call Center Software

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Help Desk Software

Partner Relationship Management

Contract Management Software

Contract Management Software enables an
enterprise to create, track and manage
partnerships, contracts, agreements.
Example: Upside Software, Accruent
Software, diCarta, I-Many.

Distribution management Software

 7

Thanks to the expanding global workforce, heightened

competition, and the continued need to cut costs and drive
productivity, companies today are facing a new array of
challenges. Many organizations have employees working out
of the office, whether it’s your traveling salesperson, or
workers in other states, countries, or from home.
Collaborating as a unified team (Workforce Collaboration)
has never been more crucial and sharing information with a
teammate in the next cubicle is only a small piece of the
puzzle. That’s where Business Software and Customer
Relationship Management (CRM) applications come in.

CRM programs enable businesses to centrally access and

manage customer information. Whether information is being
shared amongst a large group, such as in a call center or
simply between a few employees in a small business, it has
to be accurate and reliable. In order to retain customers, their
information needs to be recorded securely and correctly.
Most people have encountered the reverse of this scenario
and know how infuriating it can be when companies have
poor organization and communication among their workers.
To ensure your customers are satisfied, you need to stand
above the rest and have an information hub where all
workers have access to vital information about customers.
This will help you achieve proper customer service, sales,
marketing, and to unite all departments of your business.
CRM’s make Workforce Collaboration easier than ever!

Of course, not all team members should have access to the

same information, and that’s why certain CRM applications
enable you to share information with your team members
securely and with necessary territorial controls. That means
team leaders can view more information and each
department will see all relevant information. This ensures
excellent Project Management for any organization, which is
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vital to your success.

CRM applications help all companies reduce the time and

complexity it takes to report individual sales activities.
Without a CRM, your workers will require an extra 64 to 70
hours per week! For instance, it will take 4-6 hours to
consolidate, view, and analyze information about all
customer contacts and engagements, current opportunities,
probability of success, etc. Another 8-10 hours to get
accurate activity reports from staff (not including the time it
takes them to create those reports). Add 2-4 hours to find
key potential prospects so that you target the right
customers, or weed out the poor prospects. Finally, add on
another 1/2 hour or so to research each customer regarding
past history, needs, etc.

Any company that needs Process Improvement will find that

in order to be more effective and cost efficient, a system of
Sales Force Automation must be implemented. Certain CRM
systems can significantly reduce wasted time and increase
sales. Not only is Sales Force Automation important to sales
teams, companies are increasingly required to automate
common practices and processes. Sending emails to clients,
entering vital information, and other crucial steps are
automated with popular CRM applications to reduce wasted
time of manually performing mundane tasks.

CRM applications make Project Management easier for

company leaders with simple ways to monitor and measure
individual and team success. Workers perform best when
they have a clear-cut way to measure their success and see
improvement. Of course, by measuring success, rewards can
be given to enhance team morale! Employees that are
struggling to perform can be encouraged and further trained
to boost productivity. Everyone in the business world is
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competitive, especially salespeople; that's the point of quotas

and commissions. When reps see how their doing against
their quota, or even against other reps, that is
encouragement to do better.

With handy tools in CRM applications, your company can

effectively improve Workflow by targeting a) prospects for
new business and b) existing customers for repeat business.
This is a crucial tool to reduce wasted time and eliminate
bothering the wrong customers. Your team will be able to
quickly divide lead lists into groups that you create such as
by ZIP code or last date of purchase. This enables your sales
team to slice and dice their customer data to find the best
approach. Creating "data policies" is a great way to do that.
For example, if a new prospect is introduced and there is
data indicating their interest in "Trucks," a completely
different selling process can start for that prospect.

As times have changed, a simple phone call or visit isn’t

always enough. CRM applications will provide you with
multiple ways to communicate to customers such as email
marketing campaigns. By combining CRM Sales Force
Automation data management and email campaigning in one
application, you can specify your lead, prospect, and account
targets, embedded personal information into each email, and
measure results across your sales cycle.

Your CRM will make it easier to target the right customers

with email lists and to make sure your message isn’t viewed
as spam by filters or customers! Newsletters make excellent
campaigns to provide your reader with information that will
help them improve their situation in an unobtrusive way.
Meanwhile, it positions you as a reputable source of useful
information. The better your content is, the better your
chance that they will forward the newsletter to colleagues
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and peers or look forward to the next email from you. Your
CRM will assist you in your email campaign efforts by
offering simple templates in HTML form and providing you
with statistics such as: who opened the email, who clicked on
your link from the email, who unsubscribed, etc. Creating
automated callback lists for customers who appeared to be
interested (clicked on links, opened email, etc.) is a highly
successful tool.

A CRM application will enable your organization to build on

customer data with information relating to: opportunities,
products, services, projects, customer feedback, referrals,
accounting, and more. A Sales Force Automation CRM will
automate processes that used to take days and will simplify
it!

The answer to the problems associated with the expanding

global workforce is through Web Collaboration technologies.
This means operating a successful CRM and Business
Software system for your company. You can be sure to:

- Win Customers: Nothing will be left to chance. From the

first contact through first sale, everything is tracked.
- Work Together: It doesn’t matter where you employees are
in the office, state, country, or world, they will have the
information they need to close more deals.
- Work Smarter: Working smarter is better than harder. It
helps cut wasted time, efforts, and money! You have the
reporting data you need to make great decisions.
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Acknowledgements
If words are considered to be signs of gratitude then let these words
Convey the very same My sincere gratitude to HDFC BANK for
providing me with an opportunity to work with BANK and giving
necessary directions on doing this project to the best of my abilities.
I am highly indebted to Mr. Sunandit Chatterjee, Branch Manager

and company project guide, who has provided me with the

necessary information and also for the support extended out to
me in the completion of this report and his valuable suggestion and
comments on bringing out this report in the best way possible.

I also thank Prof. Pragna Kaul, IBMR_Kolkata, who has

sincerely supported me with the valuable insights into the completion
of this project.

I am grateful to all faculty members of IBMR_Kolkata and my

friends who have helped me in the successful completion of this
project.
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CONTENTS

Sr. No. Subject Covered Page No.

1 Banking Structure in India 6-7

2 Indian Banking Industries 8-9

3 Upcoming Foreign Bank in India 10

4 HDFC BANK 11-12

5 Company Profile 13-15

6 Technology used 16-19

7 Product and Customer segments 20-23

8 Business Strategy 24-25

9 Inside Hdfc Bank 26-31

10 Rupee Earned – Rupee Spent 32-33

11 Recent Development 34-41

12 SWOT Analysis 42-48

13 Project on Plastic Money 49-55

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BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Regional Rural

Banks Banks Banks in Bank
India
(28) (27) (29) (102)
• Nationalized • Old Private
Bank Banks
• Other Public • New
Sector Banks Private
(IDBI) Banks
• SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)
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Here we more concerned about private sector banks and

ompetition among them. Today, there are 27 private sector banks

in the banking sector: 19 old private sector banks and 8 new

Private sector banks. These new banks have brought in state-of-

the-art technology and Aggressively marketed their products.

The Public sector banks are Facing a stiff competition from the

new private sector banks. The banks which have been setup in

1990s under the guidelines of the Narasimham Committee are

referred to as NEW PRIVATE SECTOR BANKS.

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New Private Sector Banks

• Superior Financial Services

• Designed Innovative Products

• Tapped new markets

• Accessed Low cost NRI funds

• Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with

Assets expected to reach US$1 trillion by 2010. An expanding

economy, middle class, and technological innovations are all

contributing to this growth.

The country’s middle class accounts for over 320 million people.
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In correlation with the growth of the economy, rising income levels,

increased standard of living, and affordability of banking products

are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution,

Focusing on the expansion of retail and rural banking.

Players are becoming increasingly customer - centric in their

approach, which has resulted in innovative methods of offering new

banking products and services. Banks are now realizing the

importance of being a big player and are beginning to focus their

attention on mergers and acquisitions to take advantage of

economies of scale and/or comply with Basel II regulation.

“Indian banking industry assets are expected to reach US$1 trillion by

2010 and are poised to receive a greater infusion of foreign capital,”

says Prathima Rajan, analyst in Celent's banking group and author of

 17

the report. “The banking industry should focus on having a small

number of large players that can compete globally rather than having

a large number of fragmented players."

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign

banks in India. This is as an aftermath of the sudden interest shown

by Reserve Bank of India paving roadmap for foreign banks in India

greater freedom in India. Among them is the world's best private bank

by EuroMoney magazine, Switzerland's UBS.

The following are the list of foreign banks going to

set up business in India :-
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• Royal Bank of Scotland

•
• Switzerland's UBS
•
• US-based GE Capital
•
• Credit Suisse Group
•
• Industrial and Commercial Bank of China

WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the

Reserve Bank of India (RBI) to set up a bank in the private sector, as

part of the RBI's liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC

Bank Limited', with its registered office in Mumbai, India. HDFC Bank
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commenced operations as a Scheduled Commercial Bank in January

1995.

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets.

Since its inception in 1977, the Corporation has maintained a

consistent and healthy growth in its operations to remain the market

leader in mortgages. Its outstanding loan portfolio covers well over a

million dwelling units. HDFC has developed significant expertise in

retail mortgage loans to different market segments and also has a

large corporate client base for its housing related credit facilities.

With its experience in the financial markets, a strong market

reputation, large shareholder base and unique consumer franchise,

HDFC was ideally positioned to promote a bank in the Indian

environment.

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.

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COMPANY PROFILE

STRONG NATIONAL NETWO

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HDFC BANK

March 2006 March 2007 March 2008

Citied 228 316 327

Branches 535 684 761

ATMs 1323 1605 1977

As of March 31, 2008, the Bank’s distribution network was at 761

Branches and 1977 ATMs in 327 cities as against 684 branches

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and 1,605 ATMs in 320 cities as of March 31, 2007.

Against the regulatory approvals for new branches in hand, the

Bank expects to further expand the branch network by around 150

branches by June 30, 2008. During the year, the Bank stepped up

retail customer acquisition with deposit accounts increasing from

6.2 million to 8.7 million and total cards issued (debit and credit

cards) increasing from 7 million to 9.2 million.

Whilst credit growth in the banking system slowed down to about

22% for the year ended 2007-08, the Bank’s net advances grew

by 35.1% with retail advances growing by 38.6% and wholesale

advances growing by 30%, implying a higher market share in both

segments.

he transactional banking business also registered healthy growth

With cash management volumes increased by around 80% and

trade services volumes by around 40% over the previous year.

Portfolio quality as of March 31, 2008 remained healthy with gross

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nonperforming assets at 1.3% and net non-performing assets at

0.4% of total customer assets. The Bank’s provisioning policies for

specific loan loss provisions remained higher than regulatory

requirements.

TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff

competition from their rivals. And world also converted into the flat

from the globe. After the policy of liberalization and RBI initiatives to
 24

take the step for the private sector banks, more and more changes

are taking the part into it. And there are create competition between

the private sector banks and public sector bank.

Private sector banks are today used the latest technology for the

different transaction of day to day banking life. As we know that

Information Technology plays the vital role in the each and every

industries and gives the optimum return from the limited resources.

Banks are service industries and today IT gives the innovative

Technology application to Banking industries. HDFC BANK is the

leader in the industries and today IT and HDFC BANK together

combined they reached the sky. New technology changed the mind of

the customers and changed the queue concept from the history

banking transaction. Today there are different channels are available

for the banking transactions.

We can see that the how technology gives the best results in the

below diagram. There are drastically changes seen in the use of

Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%).

These type of technology gives the freedom to retail customers.

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Centralized Processing Units Derived Economies of

Scale
Electronic Straight Through Reduced Transaction Cost
Processing

Data Warehousing , CRM Improve cost efficiency,

Cross sell
Innovative Technology Provide new or superior
Application products

HDFC BANK is the very consistent player in the New private sector

banks. New private sector banks to withstand the competition from

public sector banks came up with innovative products and superior

service.

2001
 26

Branches 43%

ATM 40%

Phone Banking
14%
Internet 2%

Mobile 1%

2005
 27

Branches 17%
ATM 45%
Phone Banking 12%
Internet 25%
Mobile 1%

( % customer initiated Transaction by Channel )

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HDFC BANK PRODUCT AND CUSTOMER

SEGMENTS

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

• Auto Loan • Saving a/c • Mutual Fund

• Loan Against • Current a/c • Bonds
Security • Fixed deposit • Knowledge Centre
• Loan Against • Demat a/c • Insurance
Property • Safe Deposit • General and Health
• Personal loan Lockers Insurance
• Credit card • Equity and
• 2-wheeler loan Derivatives
• Commercial • Mudra Gold Bar
vehicles finance
• Home loans
• Retail business
banking
• Tractor loan
• Working Capital
Finance
• Construction
Equipment
Finance
• Health Care
Finance
• Education Loan
• Gold Loan

Cards Payment Services Access To Bank

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• Credit Card • NetSafe • NetBanking

• Debit Card • Merchant • OneView
• Prepaid Card • Prepaid Refill • InstaAlert
• Billpay MobileBanking
• Visa Billpay • ATM
• InstaPay • Phone Banking
---------------------------- • DirectPay • Email Statements
---- • VisaMoney • Branch Network
Forex Services Transfer
---------------------------- • e–Monies
---- Electronic Funds
• Product & Transfer
Services • Online Payment
• Trade Services of Direct Tax
• Forex service
Branch Locater
• RBI Guidelines
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WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

Enterprises and Trusts

• Funded • Funded Services BANKS

Services • Non Funded • Clearing Sub-
• Non Funded Services Membership
Services • Specialized • RTGS –
• Value Added Services submembership
Services • Value added • Fund Transfer
• Internet services • ATM Tie-ups
Banking • Internet Banking • Corporate Salary a/c
• Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities
Business

Trusts
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BUSINESS MIX

Total Deposits Gross Advances Net Revenue

Retail Wholesale

• HDFC Bank is a consistent player in the private sector

bank and have a well balanced product and business

mix in the Indian as well as overseas markets.

• Customer segments (retail & wholesale) account for

84% of Net revenues ( FY 2008)

• Higher retail revenues partly offset by higher operating

and credit costs.

• Equally well positioned to grow both segments.

.
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NRI SERVICES

Accounts & Deposits Remittances

• Rupee Saving a/c • North America

• Rupee Current a/c • UK
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts for Returning • Middle East
Indians • Africa
• Others
Quick remit
IndiaLink
Cheque LockBox
Telegraphic/ Wire Transfer
Funds Transfer
Cheques/DDs/TCs

Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment • Gold Credit Card
Scheme

Payment Services Access To Bank

• NetSafe • NetBanking
• BillPay • OneView
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • PhoneBanking
• Online Donation • Email Statements
• Branch Network
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BUSINESS STRETEGY

HDFC BANK mission is to be "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 & compliance. The objective is to build

sound customer franchises across distinct businesses so as to be a

preferred provider of banking services for target retail and wholesale

customer segments, and to achieve a healthy growth in profitability,

consistent with the Bank's risk appetite. Bank is committed to do this

while ensuring the highest levels of ethical standards, professional

integrity, corporate governance and regulatory compliance. Continue

to develop new product and technology is the main business strategy

of the bank. Maintain good relation with the customers is the main

and prime objective of the bank.

HDFC BANK business strategy emphasizes the following

:
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• Increase market share in India’s expanding banking and

financial services industry by following a disciplined growth

strategy focusing on quality and not on quantity and delivering

high quality customer service.

• Leverage our technology platform and open scaleable systems

to deliver more products to more customers and to control

operating costs.

• Maintain current high standards for asset quality through

disciplined credit risk management.

• Develop innovative products and services that attract the

targeted customers and address inefficiencies in the Indian

financial sector.

• Continue to develop products and services that reduce bank’s

cost of funds.

• Focus on high earnings growth with low volatility.

INSIDE HDFC BANK

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FIVE “S” , PART OF KAIZEN

WORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

“ Small changes lead to large improvement ”

Every successful organization have their own strategy to win the

race in the competitive market. They use some technique and

methodology for smooth running of business. HDFC BANK also

aquired the Japanese technique for smooth running of work and

effective work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank

For easy and systematic work place and eliminating unnecessary

things from the work place.

BENEFIT OF FIVE “S”

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• It can be started immediately.

• Every one has to participate.
• Five “ S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage are made visible.

FIVE ‘S’ Means :-

S-1 SORT SEIRI

S-2 SYSTEMATIZE SEITON
S-3 SPIC-N-SPAN SEIRO
S-4 STANDARDIZE SEIKETSU
S-5 SUSTAIN SHITSUKE

(1) SORT :-

It focus on eliminating unnecessary items from the work place.

It is excellent way to free up valuable floor space.

It segregate items as per “require and wanted”.

Frequently Less
Required Frequently
Remove Required
everything from
workplace
Wanted but
not Required Junk

(2) SYSTEMATIZE :-
Junk
Systematize is focus on efficient and effective Storage method.
 37

That means it identify, organize and arrange retrieval.

It largely focus on good labeling and identification practices.

Objective :- “A place for everything and everything in its place”.

(3) SPIC- n - SPAN :-

Spic-n-Span focuses on regular clearing and self

inspection. It brings in the sense of ownership.

(4) STANDERDIZE :-

It focus on simplification and standardization. It involve standard

rules and policies. It establish checklist to facilitates autonomous

maintenance of workplace. It assign responsibility for doing

various jobs and decide on Five S frequency.

(5) SUSTAIN:-

It focuses on defining a new status and standard of

organized work place. Sustain means regular training to maintain

standards developed under S-4. It brings in self- discipline and

commitment towards workplace organization.

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LABELLING ON FILE

FILE NUMBER

SUBJECT

FROM DATE

TO DATE

OWNER

BOX LABEL

For Example

1/3/A/6

1 – Work Station (1)

3 – Drawer (3)

A - Shelf (A)

6 – File Number ( 6)
 39

COLOUR CODING OF FILES

DEPARTMENT

Welcome Desk

Personal Banker

Teller

Relationship Manager

Branch Manager

Demat

Others

In the HDFC BANK each department has their different color coding

apply on the different file. Due to this everyone aware about their

particular color file which is coding on it and they save their valuable

time. It is a part of Kaizen and also included in the system of the Five

‘S’. Logic behind it that , the color coding are always differentiate the

things from the similar one.

 40

HUMAN RESOURCES

The Bank’s staffing needs continued to increase during the year

particularly in the retail banking businesses in line with the business

growth. Total number of employees increased from 14878 as of

March31,2006 to 21477 as of March 31, 2007. The Bank continues to

focus on training its employees on a continuing basis, both on the job

and through training programs conducted by internal and external

faculty.

The Bank has consistently believed that broader employee ownership

of its shares has a positive impact on its performance and employee

motivation. The Bank’s employee stock option scheme so far covers

around 9000 employees.

 41

RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where

and where to spent money. And balanced between these two things

rupee earned and rupee spent are required for smooth running of

business and financial soundness. This type of watch can control

and eliminate the unnecessary spending of business. In this diagram

it include both things from where Bank earned Rupee and where to

spent.
 42

HDFC BANK earned from the ‘Interest from Advances’ 51.14 % ,

‘Interest from Investment’ 27.12 %, bank earned commission

exchange and brokerage of 15.25 %. These are the major earning

sources of the bank. Bank also earned from the Forex and

Derivatives and some other Interest Income.

Bank spent 39.75 % on Interest Expense, 30.27 % on Operating

Expense and 14.58 % on Provision. Bank also spent Dividend and

Tax on dividend, Loss on Investment , Tax.

As we discuss above that balancing is must between these two for

every organization especially in the era of globalization where there

are stiff competition among various market players.

RECENT DEVELOPMENT
 43

The Reserve Bank of India has approved the scheme of

amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank

Ltd. with effect from May 23, 2008.

All the branches of Centurion Bank of Punjab will function as

branches of HDFC Bank with effect from May 23, 2008. With RBI’s

approval, all requisite statutory and regulatory approvals for the

merger have been obtained.

 44

The combined entity would have a nationwide network of 1167

branches; a strong deposit base of around Rs.1,22,000 crores and

net advances of around Rs.89,000 crores. The balance sheet size of

the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their

consent to a scheme of amalgamation of Centurion Bank of Punjab

Limited with HDFC Bank Limited. The shareholders of the Bank

approved the issuance of one equity share of Rs.10/- each of HDFC

Bank Limited for every 29 equity shares of Re. 1/- each held in

Centurion Bank of Punjab Limited. This is subject to receipt of

Approvals from the Reserve Bank of India, stock exchanges and

Other requisite statutory and regulatory authorities. The shareholders

Also accorded their consent to issue equity shares and/or warrants

convertible into equity shares at the rate of Rs.1,530.13 each to

HDFC Limited and/or other promoter group companies on preferential

basis, subject to final regulatory approvals in this regard. The

Shareholders of the Bank have also approved an increase in the

authorized capital from Rs.450 crores to Rs.550 crores.

 45

Promoted in 1995 by Housing Development Finance Corporation

(HDFC), India's leading housing finance company, HDFC Bank is one

of India's premier banks providing a wide range of financial products

and services to its over 11 million customers across hundreds of

Indian cities using multiple distribution channels including a pan-India

network of branches, ATMs, phone banking, net banking and mobile

 46

banking. Within a relatively short span of time, the bank has emerged

as a leading player in retail banking, wholesale banking, and treasury

operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology

and the ability to deliver world-class service with rapid response time.

Over the last 13 years, the bank has successfully gained market

share in its target customer franchises while maintaining healthy

profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and

1,977 ATMs in 327 cities. For the year ended March 31, 2008, the

Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore),

up 39.3%, over the corresponding year ended March 31, 2007.

As of March 31, 2008 total deposits were INR 1007.69 billion,

(Rs.100,769 crore) up 47.5% over the corresponding year ended

March 31, 2007. Total balance sheet size too grew by 46.0% to INR

1,331.77 billion (133177 crore). Leading Indian and international

Publications have recognized the bank for its performance and

quality.
 47

Centurion Bank of Punjab is one of the leading new generation

private sector banks in India. The bank serves individual consumers,

small and medium businesses and large corporations with a full

range of financial products and services for investing, lending and

advice on financial planning. The bank offers its customers an array

of wealth management products such as mutual funds, life and

 48

general insurance and has established a leadership 'position'.

The bank is also a strong player in foreign exchange services,

personal loans, mortgages and agricultural loans.

Additionally the bank offers a full suite of NRI banking products to

Overseas Indians. On 29th August 2007, Centurion Bank of Punjab

merged with Lord Krishna Bank (LKB), post obtaining all requisite

statutory and regulatory approvals. This merger has further

strengthened the geographical reach of the Bank in major towns and

cities across the country, especially in the State of Kerala, in addition

to its existing dominance in the northern part of the country.

Centurion Bank of Punjab now operates on a strong nationwide

franchise of 404 branches and 452 ATMs in 190 locations across the

country, supported by employee base of over 7,500 employees.

In addition to being listed on the major Indian stock exchanges,

the Bank’s shares are also listed on the Luxembourg Stock

Exchange.
 49

ACHIEVEMENT IN 2007

Business Today-
Monitor Group
survey One of India's "Most Innovative Companies"

Financial Express-
Ernst & Young Best Bank Award in the Private Sector category
Award

Global HR 'Employer Brand of the Year 2007 -2008'

Excellence Awards Award - First Runner up, & many more
 50

- Asia Pacific HRM

Congress:

Business Today 'Best Bank' Award

Dun & Bradstreet –

American Express
Corporate Best 'Corporate Best Bank' Award
Bank Award 2007
The Bombay Stock
Exchange and
Nasscom 'Best Corporate Social Responsibility
Foundation's
Business for Social
Practice' Award
Responsibility
Awards 2007
Outlook Money & Best Bank Award in the Private sector category.
NDTV Profit

The Asian Banker Best Retail Bank in India

Excellence in Retail
Financial Services
Awards

Asian Banker HDFC BANK Managing Director Aditya Puri wins the
Leadership Achievement Award for India
 51

SWOT ANALYSIS

STRENGTH WEAKNESSES

• Right strategy for the • Some gaps in range for

right products. certain sectors.
• Superior customer • Customer service staff need
service vs. competitors. training.
• Great Brand Image • Processes and systems, etc

• Products have required • Management cover

 52

accreditations. insufficient.

• High degree of customer • Sectoral growth is

constrained by low
satisfaction. unemployment levels and
competition for staff
• Good place to work

• Lower response time

with efficient and
effective service.

• Dedicated workforce
aiming at making a
long-term career in
the field.
 53

Opportunities Threats

• Profit margins will be good. • Legislation could impact.

• Could extend to overseas • Great risk involved

broadly. • Very high competition
• New specialist applications. prevailing in the industry.

• Could seek better customer • Vulnerable to reactive

deals.
attack by major competitors
• Fast-track career • Lack of infrastructure in
development opportunities rural areas could constrain
on an industry-wide basis. investment.
• An applied research centre • High volume/low cost
to create opportunities for market is intensely
developing techniques to competitive.
provide added-value
services.
 54

COMPETITIVE SWOT ANALYSIS WITH ICICI BANK

STRENGTHS WEAKNESSES

O
P S – O Strategies W – O Strategies
P
O Strength: Large Capital base. Weakness: Workforce
R
T Opportunity: Market Expansion. Responsiveness.
U
N Opportunity: Outsourcing of Non –
I Strategy: Deep Penetration into Core Business.
T
I Rural Market. Strategy: Outsource Customer
E Care & other E-Helps.
S

S – T Strategies W – T Strategies
T
H Strength: Low operating costs Weakness: Not Equal to
R International Standards.
E
A Threat: Increased Competition Threat: Entry of many Foreign
T from others Pvt. Banks. Banks.
S
Strategy: Steps to Ensure
Loyalty by old Strategy: Consider additional
Customers. benefits
 55

Detailed Analysis:

i. Strength - Opportunity Analysis.

Strength:

It is well know that ICICI Bank has the largest Authorised Capital

Base in the Banking System in India i.e. having a total capacity to

raise Rs. 19,000,000,000 (Non – Premium Value).

Opportunity:

Seeing the present financial & economic development of Indian

Economy and also the tremendous growth of the Indian

Companies including the acquisition spree followed by them,

it clearly states the expanding market for finance requirements

and also the growth in surplus disposal income of Indian citizens

has given a huge rise in savings deposits – from the above point it

is clear that there is a huge market expansion possible in banking

sector in India.

Strategy:

From the analysis of Strength & Opportunity the simple and

 56

straight possible strategy for ICICI Bank could be - to penetrate

into the rural sector of India for expanding its market share as well

as leading all other Pvt. Banks from a great gap.

ii. Strength - Threat Analysis.

Strength:

ICICI Bank is not only known for large capital but also for having a

low operations cost though having huge number of branches and

services provided.

Threat:

After showing a significant growth overall, India is able to attract

many international financial & banking institutes, which are known

for their state of art working and keeping low operation costs.

Strategy:

To ensure that ICICI Bank keeps going on with low operation cost

& have continuous business it should simply promote itself well &

provide quality service so as to ensure customer loyalty, therefore

guaranteeing continuous business.

 57

iii. Weakness - Opportunity Analysis.

Weakness:

It is well known that workforce responsiveness in banking sector is

Very low in Indian banking sector, though ICICI Bank has better

responsible staff but it still lacks behind its counterparts like HSBC,

HDFC BANK, CITI BANK, YES BANK etc.

Opportunity:

In the present world, India is preferred one of the best places for

out – sourcing of business process works and many more.

Strategy:

As international companies are reaping huge benefits after out-

sourcing there customer care & BPO’s, this same strategy should

be implemented by ICICI Bank so as to have proper customer

service without hindering customer expectations.

 58

iv. Weakness - Threat Analysis.

Weakness:

Though having a international presence, ICICI Bank has not been

able to keep up the international standards in providing customer

service as well as banking works.

Threat:

In recent times, India has witnessed entry of many international

banks like CITI Bank, YES Bank etc which posses an external

entrant threat to ICICI Bank – as this Banks are known for their art

of working and maintain high standards of customer service.

Strategy:

After having new entrants threat, ICICI Bank should come up with

More additional benefits to its customer or may be even reduce

some fees for any additional works of customers.

 59

PROJECT ON PLASTIC MONEY

PLAST
I give the project on Plastic Money to bank. The objective behind this

project is to increase the rich customers list in a bank. Plastic Money

title itself says the use of Credit Card and Debit Card in day to day

transaction of the business. I prepared the presentation on it and

 60

submitted to bank and Bank already started work on this project.

Idea behind this project is to sale the bulk product. Target customer

Of this project are two parties one is Wholesaler and second is

Retailer. Due to this idea bank also sell their swipe machine to

wholesaler and create brand image in the market.

The idea behind this, bank give the credit card swipe machine to

wholesalers and retailers use the credit card of the bank. Bank gives

the 50 days credit to their credit card holders. So here retailers can

get benefit of long credit period and on the other side wholesalers can

get the benefit of same day payment. As a result bank got the wide

list of customers of wholesalers and retailers.

 61

POWERPOINT PRESENTATION ON PLATIC

MONEY

O
 62

 We sale our pro

and create grou
Idea behind it, to convenience both the parties and create the group

transaction between them so bank can got the maximum benefit from

it. Each wholesaler has more than 15 to 20 retailers, so by this way

Credit Cardand
andD
bank sell the bulk products.


transaction.
 63

H
 Meet towholes
 Collect details
This power point slide shows the how idea works behind this project.

Meet the wholesaler first and get the details about their retailers and

convince both parties and shows the benefit of using this type of

 Convince both
transaction by plastic money.

benefitsfrom it
 64

Be
 Bulkproduct
Bank always find those customers which are more involve in the

banking transaction. These type of group transaction between the

wholesalers and retailers maintain the well account in a bank.

 Because who
group
 65

M ar
 I t's show tim
communicati
service in suc
customers wan