Project Report On Personal Loan Compress

HDFC BANK LTD (PERSONAL LOAN) 1
CHAPTER-1
INTRODUCTION
1.1 CENERAL INTRODUCTION
The banking sector is the most dominant sector of the financial system in India.
Significant progress has been made with respect to the banking sector in the past
liberalization period. The financial health of the commercial banks has improved
manifolds with respect to capital adequacy, profitability, asset quality and risk
management. Further, deregulation has opened new opportunities for banks to increase
revenue by diversifying into investment banking, insurance, credit cards, depository
services, mortgage, securitization, etc. Liberalization has created a more competitive
environment in the banking sector.
Indian Banking Sector:
Banking in India has its origin as early as the Vedic period. It is believed that the
transition from money lending to banking must have occurred even before Manu, the
great Hindu thinker, who has devoted a section of his work to deposits and advances
and laid down rules relating to rates of interest. During the Mogul period, the indigenous
bankers played a very important role in lending money and financing foreign trade and
commerce. During the days of the East India Company, it was the turn of the agency
1
houses to carry on the banking business. The General Bank of India was the first Joint
Stock Bank to be established in the year 1786. The others that followed were the Bank
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of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have
continued till 1906 while the other two failed in the meantime. In the first half of the 19 th
century the East India Company established three banks; the Bank of Bengal in 1809,
the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also
known as Presidency Banks, were independent units and functioned well.
These three banks were amalgamated in 1920 and a new bank, the Imperial
Bank of India was established on 27 th January 1921. With the passing of the State Bank
of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the
newly constituted State Bank of India. The Reserve Bank which is the Central Bank was
created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the
Swadeshi Movement, a number of banks with Indian management were established in
the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd,
Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19,
1969, 14 major banks of the country were nationalized and in 15 th April 1980 six more
commercial private sector banks were also taken over by the government. Today the
commercial banking system in
Types of Banks in India:

In India the banking sector are mainly classified in to four categories are as follows
1.3.1 State Bank of India and its associate banks called the State Bank group
1.3.2 20 nationalized banks
1.3.3 Regional Rural Banks mainly sponsored by Public Sector Banks 2

1.3.4 Private Sector Banks
1. Old generation private banks

2. New generation private banks
3. Foreign banks in India
4. Scheduled Co-operative Banks
1.2 INDUSTRY PROFILE
a. Origin and development of the industry
The origin of banking in India is traceable in ancient time through the modern banking
hardly 200 years old. The main functions of a bank are to accept deposits and grant
loans. There are evidences of these functions being performed by a section o the
community in the Vedic periods. There are many references of Debt in the Vedic
Literature. During the Ramayana and Mahabharata eras banking, which was a side
businesses during the Vedic period, became a full-time business activity for the people.
During the Smriti period, the banking business was carried on by the members of the
Vanish community and Manu speaks of earning through interest as the business of
Vaishyas. He accepted deposits from the public, granted loans against pledges and
personal security, granted simple open loans, acted as bailee for his customers,
subscribed to public loans by granting loans to kings, acted as treasurer and banker to 3

the state and managed the currency of the country. Indigenous bankers used to
maintain a regular system of accounts and borrowers used to sign the loan deeds.
▪ Money changing came into vogue and the state regulation of the business
became more systematic.
▪ Indigenous bills of exchange came also in use.
▪ The maximum rates of interest were fixed.
Development from Independence until 1991
At the time of Independence in 1947, the banking system in India was fairly well
developed with over 600 commercial banks operating in the country. However, soon
after Independence, the view that the banks from the colonial heritage were biased in
favor of working-capital loans for trade and large firms and against extending credit to
small-scale enterprises, agriculture and commoners, gained prominence. To ensure
better coverage of the banking needs of larger parts of the economy and the rural
constituencies, the Government of India (GOI) created the State Bank of India (SBI) in
1955. Despite the progress in the 1950s and 1960s, it was felt that the creation of the
SBI was not far reaching enough since the banking needs of small scale industries and
the agricultural sector were still not covered sufficiently. Following the Nationalization
Act of 1969, the 14 largest public banks were nationalized which raised the Public
4
Sector Banks' (PSB) share of deposits from 31% to 86%. The two main objectives of the
nationalizations were rapid branch expansion and the channeling of credit in line with

the priorities of the five-year plans. To achieve these goals, the newly nationalized
banks received quantitative targets for the expansion of their branch network and for the
percentage of credit they had to extend to certain sectors and groups in the economy,
the so-called priority sectors, which initially stood at 33.3%. The main policy changes
were the introduction of Treasury Bills, the creation of money markets, and a partial
deregulation of interest rates. Besides the establishment of priority sector credits and
the nationalization of banks, the government took further control over banks' funds by
raising the statutory liquidity ratio (SLR) and the cash reserve ratio (CRR). From a level
of 2% for the CRR and 25% for the SLR in 1960, both witnessed a steep increase until
1991 to 15% and 38.5% respectively. In summary, India's banking system was at least
until an integral part of the government's spending policies. Through the CRR and the
SLR more than 50% of savings had either to be deposited with the RBI or used to buy
government securities. Of the remaining savings, 40% had to be directed to priority
sectors that were defined by the government. Besides these restrictions on the use of
funds, the government had also control over the price of the funds, i.e. the interest rates
on savings and loans. This was about to change at the beginning of the 1990s when a
balance-of-payments crisis was a trigger for far-reaching reforms.

Developments after 1991
The 1991 report of the Narasimham Committee served as the basis for the initial
banking sector reforms. In the following years, reforms covered the areas of interest
rate deregulation, directed credit rules, statutory pre-emptions and entry deregulation for
both domestic and foreign banks. The objective of banking sector reforms was in line
with the overall goals of the 1991 economic reforms of opening the economy, giving a
greater role to markets in setting prices and allocating resources, and increasing the
role of the private sector.
Statutory pre-emption
The degree of financial repression in the Indian banking sector was significantly
reduced with the lowering of the CRR and SLR, which were regarded as one of the
main causes of the low profitability and high interest rate spreads in the banking system.
During the 1960s and 1970s the CRR was around 5%, but until 1991 it increased to its
maximum legal limit of 15%. From its peak in 1991, it has declined gradually to a low of
4.5% in June 2003. In October 2004 it was slightly increased to 5% to counter
inflationary pressures, but the RBI remains committed to decrease the CRR to its
statutory minimum of 3%. The SLR has seen a similar development. The reduction of
the CRR and SLR resulted in increased flexibility for banks in determining both the
volume and terms of lending.

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Priority sector lending
Besides the high level of statutory pre-emption, the priority sector advances were
identified as one of the major reasons for the below average profitability of Indian banks.
The Narasimham Committee therefore recommended a reduction from 40% to 10%.
However, this recommendation has not been implemented and the targets of 40% of net
bank credit for domestic banks and 32% for foreign banks have remained the same.
Public Sector Banks
At the end of the 1980s, operational and allocation inefficiencies caused by the
distorted market mechanism led to a deterioration of Public Sector Banks' profitability.
Enhancing the profitability of PSBs became necessary to ensure the stability of the
financial system. The restructuring measures for PSBs were threefold and included
recapitalization, debt recovery and partial privatization. Prior to any privatization, the
balance sheets of PSBs had to be cleaned up through capital injections. In the fiscal
years 1991/92 and 1992/93 alone, the GOI provided almost Rs40 billion to clean up the
balance sheets of PSBs. Between 1993 and 1999 another Rs120 billion were injected in
the nationalized banks. In total, the recapitalization amounted to 2% of GDP.

b. Crowth and present status of the Industry
The financial sector is in a process of rapid transformation. Reforms are continuing as
part of the overall structural reforms aimed at improving the productivity and efficiency
of the economy. The role of an integrated financial infrastructure is to stimulate and
sustain economic growth.
The Reserve Bank of India (RBI) has successfully introduced a regime where interest
rates are more in line with market forces.
Financial institutions have combated the reduction in interest rates and pressure on
their margins by constantly innovating and targeting attractive consumer segments.
Banks and trade financiers have also played an important role in promoting foreign
trade of the country.
The Indian banking system has a large geographic and functional coverage. Presently
the total asset size of the Indian banking sector is US$ 270 billion while the total
deposits amount to US$ 220 billion with a branch network exceeding 66,000 branches
across the country. Revenues of the banking sector have grown at 6 per cent CAGR
over the past few years to reach a size of US$ 15 billion. While commercial banks cater
to short and medium term financing requirements, national level and state level financial
institutions meet longer-term requirements. This distinction is getting blurred with
commercial banks extending project finance. 8

Banks, as we all know, are subjected to more intense regulation as compared to the
non-financial firms. Bank regulation is now increasingly getting risk-centric. This process
had its origin in the Cooke Committee or the Basel I proposals which for the first time
prescribed a risk-based capital adequacy framework for banks by recognizing that
different counterparties had different risks and therefore had to be risk-weighted
differently
c. Future of the Industry
The interplay between policy and regulatory interventions and management strategies
will determine the performance of Indian banking over the next few years. Legislative
actions will shape the regulatory stance through six key elements:
1) industry structure and sector consolidation
2) freedom to deploy capital
3) regulatory coverage
4) labour reforms and human capital development
5) corporate governance
6) support for creating industry utilities and service bureaus. 9

Management success will be determined on three fronts:
1) fundamentally upgrading organizational capability to stay in tune with the
changing market
2) adopting value-creating M&A as an avenue for growth
3) Continuously innovating to develop new business models to access untapped
opportunities.
Changes in regulations and bank capabilities reduce intermediation costs leading to
increased growth, innovation and productivity. Banking becomes an even greater driver
of GDP growth and employment and large sections of the population gain access to
quality banking products. Management is able to overhaul bank organizational
structures, focus on industry consolidation and transform the banks into industry
shapers.
The Reserve Bank of India has, in the service of our country, a proven track record and
professionalism, which have lent it considerable credibility - both domestically and
globally. This credibility enables the RBI to confidently carry the reforms forward to
credibly maintain price and financial stability, while enabling self-accelerating equitable
growth at elevated levels The Indian financial sector is ready for consolidation, said 95
per cent of the respondents. Given the increased competition, and the implementation
of Basel II norms in the near future, the banking industry of the country would be better
10
off with six to seven banks as big as State Bank of India, said the survey.

Areas that need improvement include diversification of markets beyond big cities,
human resources systems, size of banks, high transaction costs, and infrastructure and
labor inflexibilities. some strategies that can help India achieve a world class banking
system are consolidation, strict corporate governance norms, and regional expansion
within the country and outside, higher FDI limits and Free Trade Agreements with
countries where India has comparative advantage in banking sector.
India has among the lowest penetration of retail loans in Asia. Though the sector has
been growing at around 15 per cent, there is still a huge opportunity to tap into. Retail
loans and lending to small and medium enterprises will emerge as the two biggest
areas of growth in the future for the Indian banking sector
The total assets in the banking sector today are estimated to be at Rs 17 trillion and
total deposits are estimated at Rs 13 trillion. There are over 290 scheduled banks in the
country today, of which 190 are regional rural banks. There are just 9 Indian private
sector banks. Together the banking industry offers 66,000 branches across India.
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CHAPTER-2
PROFILE OF THE ORGANIZATION
2.1 ORICIN OF THE ORCANIZATION
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
12
and unique consumer franchise, HDFC was ideally positioned to promote a bank in the
Indian environment.

2.2 CROWTH AND DEVELOPMENT OF THE ORCANIZATION
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 1400 branches spread over 600 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centers where its corporate customers
are located as well as the need to build a strong retail customer base for both deposits
and loan products.
The Bank also has a network of about over 2000 networked ATMs across these cities.
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.
2.3 PRESENT STATUS OF THE ORGANIZATION
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 commenced
operations as a Scheduled Commercial Bank in January 1995.

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Promoter
HDFC is India’s premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception is 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain
a market leader in mortgages.
Business Focus
HDFC Bank’s mission is to be a World-Class Indian Bank. The Bank’s aim is to build
sound customer franchises across distinct businesses so as to be the preferred
provided of banking services in the segments that the bank operates in and to achieve
healthy growth in profitability, consistent with the bank’s risk appetite.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up
capital is Rs282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of the bank’s
equity while about 13.1% of the equity is held by the depository in respect of the bank’s
issue of American Depository Shares (ADS/ADR Issue)..
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Distribution Network
of over 1400 branches spread over 600 cities across the country. All branches are
linked on an online real-time basis. Customers in 90 locations are also serviced through
Phone Banking. The Bank’s expansion plans take into account the need to have a
and loan products.
Management
Mr.Jagdish Kapoor took over as the bank’s Chairman in July 2001, Prior to this,
Mr.Kapoor was a Deputy governor of the Reserve Bank of India.
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

15
executive 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.
2.4 FUNCTIONAL DEPARTMENTS OF THE ORCANIZATION
The bank has three key business areas:
1. Wholesale Banking Services
Here our target market is primarily large, blue-chip companies and to a lesser extent,
emerging mid-sized corporate. For these corporate, we provide a wide range of
services, including working capital finance, trade services, transactional services, cash
management, etc. We are a leading provider of structured solutions, which combine
cash management services with vendor and distributor finance, for facilitating superior
supply chain management for our corporate customers. We are also recognized as a
leading provider of cash management and transactional banking solutions to mutual
funds, stock exchange members and banks.
2. Retail Banking Services
The objective of the Retail Bank is to provide our 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
16
delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile

Banking. The 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. We have a wide array of retail loan products
including Auto Loans, Loans against Securities, Personal Loans and Loans for Two-
wheelers.
3. Treasury Operations
Within this business, the bank has three main product areas -
a) Foreign Exchange and Derivatives
b)Local Currency Money Market &
c) Debt Securities and Equities.
With the liberalization of the financial markets in India, corporate need more
sophisticated risk management information, advice and product structures. These are
provided through the bank's Treasury team. The Treasury business is responsible for
managing the returns and market risk on the bank's investment portfolio.
17

The above business groups are supported by the following groups:
▪ Audit & Compliance
▪ Credit & Market Risk
▪ Finance, Administration & Legal
▪ Human Resources
▪ Information Technology
▪ Operations
4. Systems & Technology
The Bank uses state-of-the-art technology for both internal and external customers.
a) Banking Applications
In terms of software, the Corporate Banking business is supported by UBS, while the
Retail Banking business by Finware. These world-class systems have been specially
customized for HDFC Bank by i-flex Solutions Ltd. which is a Citigroup company. The
Bank also uses various other systems to support other infrastructure –
b).Lotus Notes
Lotus Notes is the system that HDFC bank uses for internal communication.
c) Facilities Management
Wipro is the company appointed to give HDFC Bank the on-site support required at
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different locations / cities.

2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART
HDFC Bank Board of Directors comprises 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.
ORCANIZATION CHART
Chairman
Managing Director & CEO
Joint Managing Director Joint Managing Director
(Domestic Banking) (International Business)
Executive Director Executive Director Executive Director Executive Director

19
(Corporat (Project Finance) (Retail Banking) (Wholesale
e Center) Banking)

Sr. General Managers
Sales SALES SALES SALES
TEAM TEAM TEAM TEAM

LEADER LEADER LEADER LEADER
BDE 1 BDE 2 BDE 1 BDE 2 BDE 1 BDE 2 BDE 1 BDE 2
20

2.6 PRODUCT AND SERVICE PROFILE OF THE ORCANIZATION
Products of HDFC Bank includes the following:
Deposits:
1) Savings Account
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are confident
that you will find the perfect banking solution. Open an account in your name or register
for one jointly with a family member today. Some of its features are:
➢ Debit-cum-ATM card
➢ Auto Invest Account
➢ Internet Banking
➢ Phone banking
➢ Anywhere Banking
➢ Standing Instruction
➢ Nomination facility
➢ Doorstep service
➢ Mobile banking
➢ Monthly free E-Mail statement

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3) Personal Loan
➢ Loans up to Rupees one million for any purpose.
➢ Flexible Repayment Options ranging from 12 to 48 months.
➢ Repayment through Easy Monthly Installments (EMIs).
➢ Low Rate of Interest
➢ Hassle free loans - No guarantor/security/collateral required
➢ Speedy loan approval
➢ Service at the customer's doorstep
➢ Further, there are additional privileges for HDFC Bank account holders like:
➢ Special rates of interest.
➢ For existing Auto Loan customers with a clear repayment of 12 months or more
from even any of the approved financiers of HDFC Bank, a hassle free personal
loan without income documentation can be obtained.
➢ For existing HDFC Bank Personal Loan customer with a clear repayment of 12
months or more, personal loan can be enhanced.
4) Senior Citizen Services
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5) Fixed deposits
➢ Wide range of tenures
➢ Choice of investment plans
➢ Partial withdrawal permitted
➢ Safe custody of fixed deposit receipts
➢ Auto renewal possible
➢ Loan facility available
6) Easy deposit
7) Recurring deposit
➢ Encourage savings
➢ High interest rates of interest
➢ Loans against deposits available
➢ Non-applicability of tax deduction at source (TDS)
8) Special savings account

23
Bank @ campus

9) Direct Banking Account
10) Tax – Saver Fixed Deposits
11) Roaming Current Account
12) Young Stars or Kids Account
13) Savings Max Account I Regular Account I Plus Account
14) D-Mat Account
15) Family Account
16) NRI account
SERVICES:
a) 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
24

delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
b) Wholesale Banking Services
Here our target market is primarily large, blue-chip companies and to a lesser extent,
emerging mid-sized corporate. For these corporate, we provide a wide range of
services, including working capital finance, trade services, transactional services, cash
management, etc. We are a leading provider of structured solutions, which combine
cash management services with vendor and distributor finance, for facilitating superior
supply chain management for our corporate customers. We are also recognized as a
leading provider of cash management and transactional banking solutions to mutual
funds, stock exchange members and banks.
2.7 MARKET PROFILE OF THE ORCANIZATION
HDFC is India's premier housing finance company and it is the largest private bank in
India. HDFC Bank 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
25
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's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private sector bank promoted by Bennett, Coleman & Co./Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank. The acquisition added significant value to HDFC Bank in terms
of increased branch network, expanded geographic reach, enhanced customer base,

26
skilled manpower and the opportunity to cross-sell and leverage alternative delivery
channels.

of over 1400 branches spread over 600 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and
active member base.
27

CHAPTER 3
DISCUSSIONS ON TRAININC
3.1 Student's work profile
(Roles and responsibilities)
The internship period in HDFC Bank was a good learning experience. I worked for
Direct Sales team of the organization as a “Business Development Executive” where
my job was to loing for Personal Loan of bank and source new customers at the HDFC
Bank LTD. In WhiteFeild Branch . My work involved some field work as well as making
extensive cold calls to customers in order to generate database and keep updates on
customer satisfaction.
Every new “Business Development Executive” of the sales team have to undergo a
three day compulsory product training in the Indira Nagar Head Branch, of HDFC Bank
Ltd., Bangalore. Once every member of the team is trained on the products i.e.
Personal Loan of the bank, the manager-in-charge sets a weekly target for the team as
well as for each team member. The team leader keeps track of the targets and arrange
for the necessary changes in case the targets are not achieved.
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Every day my work would start off with calling up customers and make follow ups of
those customers who are interested in personal loan with HDFC Bank. Apart from

calling, I also need to report the daily sales report to my manager on a regular basis.
Once the follow up calls are made, my job wants me to interact with the customers
regarding the products, in and outside the organization. Hence my next steps include
fixing appointments for the interested customers and collecting the essential documents
to log in the application forms. Also, a BDE need to go on field for generation of new
database and organizing sales activities in order to boost up sales.
The assigned job responsibilities also include creating loyal customers and conducting
promotional campaigns, giving presentations, handling customer queries and last but
not the least, achieving the set targets.
3.2 DESCRIPTION OF LIVE EXPERIENCE
As a Business Development Executive I had to interact with customers extensively and
had to login for personal loan for them. My work in office used to begin with listing out
the interested customers out of the daily sales report , from walking customer and then
calling them up and ask for personal loan with HDFC Bank. While speaking over the
phone with the customer I used to provide all the necessary information along with
product details to the customer. Next was fixing up the appointments for the process.
Once the appointments were done I had to go to meet the prospective customer at the
fixed place area and had to generate database and find out new prospects. This 29
included much challenge as convincing customers is not as easy as it sounds. It had to

follow with product presentations and promotional activities. During the course I had the
opportunity to deal with some big clients like IT companies, BPOs and small enterprises
which were helpful exposures to learn sales and marketing tactics. Last but not the
least, every BDE of the sales team had individual targets to achieve. I had a target of
login of Rs. 10,00,000/- per month which I successfully achieved and maintained during
the internship period.
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CHAPTER 4
STUDY OF SELECTED RESEARCH PROBLEM
4.1 STATEMENT OF RESEARCH PROBLEM
In today’s era of cut throat competition, it is very importance to gain a cutting edge over
the competition, and develop a large market share. This is only possible if there is a
large customer base for the company. The company must gain confidence of the
customers and provide services par excellence.
Therefore, undertaking the project helps in assessing the customer care level of HDFC
BANK. The study is applied descriptive as well as diagnostic in nature. It also tends to
find the customer view about important aspects of the services. At the same time it was
intended to find the customer view about the product and the quality of service
improvement. In short this problem can be defined as:
“Are customers satisfied with the services at HDFC?”
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4.2 STATEMENT OF RESEARCH OBJECTIVES
The important research objectives are listed below:
1. To evaluate the expectations of customers towards personal loan with HDFC Bank.
2. To study the importance of customer relationship.
3. To study the impact of customer relationship management on bank customers.
4. To analyze the expectations of banking customers.
5. To analyze the satisfaction level of customers of HDFC bank on the following criteria:
• Working environment
• Customer care
• Bank timings
• Overall services
• Special schemes provided
32

4.3 RESEARCH DESICN AND METHODOLOCY
For any research, research design is of immense importance as it facilitates the smooth
sailing of various research operations. The method adopted by the researcher for
completing the project is called Research Methodology. In other words, Research
Methodology is simply the plan of action for a research which explains the detail, how
data is to be collected, analyzed and interpreted.
Data becomes information only when a proper methodology is adopted. Thus we can
say methodology is a tool which processes the data into reliable information.
Scope of the study
As the competition level in the banking sector is ever increasing, it becomes
indispensable for the company (HDFC) to conduct the study on the perception and
satisfaction level of its customers. This study will help the company in making its new
strategies to satisfy its customer in the ways in which he or she wants to be satisfied
and to the company its position in the market.
The study on customer satisfaction has the geographical coverage limited to White Field
area and Indira Nagar only. This study will help the company to know in detail about the
customer perception and their attitude towards the company services and products.
The company will gain the feedback from the customer to improve its products and
33
quality of service.

Methods used for data collection are:
1) Primary Data
2) Secondary Data
Primary data: Primary data are data’s, which are original in nature, and are
collected by the researcher. The method used to collect the primary data was Survey
Method. The survey method included a structured questionnaire that was given to the
respondent.
Secondary data: Secondary data are data, which has been collected and
compiled in advance for another needed purpose. Secondary data is an important
method to know the present problem faced by the account holders in the field of HDFC
Bank.
Newspapers, articles, books, magazines etc. have been used to prepare the
questionnaire.
34

Tools for data collection
The tool used for data collection is Primarily “Questionnaire method”. The questions
contained:
a) Open-Ended Questions
Where the respondent was given a chance to reply or give suggestions to the
Company. This included Free Responses questions where the respondents were given
the freedom to give suggestions.
b) Close-Ended Questions
Where the respondent was given a lesser chance to reply. This includes Multiple Choice
Questions where the respondents were given a number of alternatives.
Sampling Method Used:
Non probability sampling, i.e., convenient sampling method was used to select a sample
of 100 customers among the customers of the HDFC Bank.
35

Sample Size:
Sample size of 100 customers are taken from the White Field branch of HDFC Bank
Sampling Method Used:
Random sampling method was used to select a sample of 100 customers among the
customers of HDFC Bank.
Scales:
Respondents were given a scale whose positions range from “Highly Satisfied” to
“Highly Dissatisfied”
Area of survey:
The area selected to find the satisfactory level was in and around White Field area and
Indra Nagar.
36

4.4 ANALYSIS OF DATA
The study on customer satisfaction has the geographical coverage limit to White
Fieldarea only. This study will help the company to know in detail about the customer
perception and their attitude towards the company services and products. The company
will gain the feedback from the customer to improve its products and quality of service
1) TABLE SHOWINC DISTRIBUTION OF ACE
AGE GROUP NO. OF RESPONDENTS PERCENTAGE
20 – 30 22 22%
30–40 43 43%
40 AND ABOVE 35 35%
TOTAL 100 100%
ANALYSIS
The above table shows that 22% of the respondents fall under the age group of 20 –
37
30 years, 43% of the respondents fall under age group of 30 – 40 years and 35% of the
respondents belonging to age group of 40 and above years.

38
HDFC BANK LTD (PERSONAL LOAN)
INFERENCE
Hence it clearly shows that he majority of the respondents fall under the age group of
30–40 years i.e. 43%.
CHART SHOWING DISTRIBUTION OF AGE
22%
35%
20 − 30
30−40
40 AND ABOVE
43%
38

2) TABLE SHOWINC DISTRIBUTION OF CENDER
GENDER NO. OF RESPONDENTS PERCENTAGE
FEMALE 43 43%
MALE 57 57%
TOTAL 100 100%
ANALYSIS
The table shows that there are 57% of male respondents and 43% of female
respondents
INFERENCE
Thus the table clearly shows that the majority of the respondents are male i.e. 57%.
39

CHART SHOWING RESPONDENTS

(MALE & FEMALE)
60
50
40
FEMALE
30
MALE
20
10
0
NO. OF RESPONDENTS PERCENTAGE
3). THE DISTRIBUTION OF THE MONTHLY NET TAKE HOME
SALARY
MONTHLY HOUSEHOLD NO. OF RESPONDENTS PERCENTAGE
INCOME
LESS THAN RS 15,000 0 0%
RS 15,000 – RS 30,000 23 23%
MORE THAN RS 30,000 77 77%
TOTAL 100 100%

40

41
ANALYSIS
The above table shows that there are no respondents who have a monthly net take
home salary of less than Rs 15,000; there are 23% of the respondents who fall under
Rs 15,000 – Rs 30,000 household income and 77% fall under the more than Rs 30,000
net take home salary category.
INFERENCE
The table clearly shows that the majority of the respondents have more than Rs 20,000
of monthly net take home salary that is 77%
CHART SHOWING DISTRIBUTION OF

MONTHLY NET TAKE HOME SALARY
0%
23%
LESS THAN RS 10,000
RS 10,000 − RS 20,000 MORE THAN RS 20,000
77%
41

4).THE IMPORTANCE OF THE INTEREST RATE ACCORDING
TO THE CUSTOMERS
IMPORTANCE NO.OF RESPONDENTS PERCENTAGE
VERY IMPORTANT 65 65%
SOMEWHAT IMPORTANT 20 20%
NOT SO IMPORTANT 15 15%
NOT AT ALL IMPORTANT 0 0%
TOTAL 100 100%
ANALYSIS
The above table relates that the 65% of the respondents think it’s extremely important
for the interest rate to be convenient, 20% of the respondents think it is somewhat
important, 15% of the respondents think its not so important while none of them think its
not at all important.
INFERENCE
Table number 7 clearly shows that majority of the customers think that it is very
42
important that the interest rate are convenient i.e. 65%.

43
IMPORTANCE OF INTEREST RATE
0%
15%
VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT
20% NOT AT ALL IMPORTANT
65%
5) THE IMPORTANCE OF PROCESSINC FEES AND TIME IN
HDFC BANK ACCORDINC TO CUSTOMRES
VARAIBLES RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 10 10%
SATISFIED 62 62%
NEUTRAL 23 23%
DISSATISFIED 5 5%
HIGHLY DISSATISFIED 0 0%
TOTAL 100 100%
43

44
ANALYSIS
From the above table it can be analyzed that out of 100 respondents 10% are highly
satisfied with the processing fees & time of the bank, 62% are satisfied, 23% are
neutral, 5% are dissatisfied and none are highly dissatisfied.
INFERENCE
Therefore, it can be inferred that almost 5% of the respondents are not happy with the
processing fees & time.This indicates that the customers are not satisfied with the
processing fees & time
Importance of processing fees & time
0%
5%10%
23% HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED
HIGHLY DISSATISFIED
62%
44

7) TABLE SHOWINC SIZE OF THE EASY MONTHLY
INSTALLMENT
IMPORTANCE NO. OF PERCENTAGE

RESPONDENTS
VERY IMPORTANT 30 30%
SOMEWHAT 45 45%
IMPORTANT
NOT SO IMPORTANT 20 20%
NOT AT ALL 5 5%
IMPORTANT
TOTAL 100 100%
ANALYSIS
The table shows that according to 30% of the respondents it is very important that the
size of the EMI is appropriate, 45% of the respondents think it is somewhat important,
20 % of the respondents said it is not so important while 5% of the respondents replied
that it is not at all important.
INFERENCE
Hence the table clearly shows that the majority of the respondents think it is somewhat
45
important for the EMI to be appropriate.

46
Importance for size of the EMI
5%
20% 30%
VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT
NOT AT ALL IMPORTANT
45%
7) IMPORTANCE OF DEVELOPMENT EXECUTIVE IN HDFC
BANK WITH RECARD TO PERSONAL LOAN ACCORDINC TO
CUSTOMER
VARIABLES RESPONDENTS PERCENTAGE
HIGHLY SATISFIED 15 15%
SATISFIED 55 55%
NEUTRAL 20 20%
DISSATISFIED 10 10%
46

HIGHLY DISSATISFIED 0 0%
TOTAL 100 100%
ANALYSIS
The above table shows that out of 100 respondents,15 % of the respondents are highly
satisfied with the development executive of HDFC Bank, 555 are satisfied, 20% are
neutral while 10% are dissatisfied with the customer care and none are highly
dissatisfied..
INFERENCE
Development Executive is of immense importance in today’s world and a key tool for an
organization in order to gain new customers and boost up sales and market share.
Therefore, HDFC Bank should work towards the dissatisfied customerby regular
training to its employees or making the procedure more customer friendly.
47

48
Respondents on customer
0%
10% 15%
20% HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED
HIGHLY DISSATISFIED
55%
4.5 SUMMARY OF FINDINCS
1. Most of the customers of the bank are satisfied, but there is a minority of
customers who are still looking for improvement.
2. The bank has strong customer relationship, whether it is customer service or post
sales service, HDFC Bank serves the customer well.
3. However the bank timigs are not very convenient for the customers. Hence,
flexible banking hours shoud be adopted to meet customers’ requirements.
4. When it comes to the processing fees & time , it shows mix response. More 48
customers would prefer a change in the. processing fees & time

5. The only draw back that HDFC bank has in compare to other banks is only
regarding the interest rates which is considered to be low in comparison to other
bank. While most of the banks charges high monthly installment for the
repayment of loan with compare to HDFC bank.
6. Enable customers to get personal loan easily and provide variety of other
banking scheme to the personal loan customer .
49

CHAPTER 5
SUMMARY AND CONCLUSION
5.1 SUMMARY OF LEARNING EXPERIENCE
My experience with HDFC Bank as a Business Develoment Executive during the three
months internship period has helped me to a great extent in dealing with customers and
with their tastes and expectations.
With the changing market scenario and increased competition, it is very important to
treat the customer as the king and to keep him happy When it comes to sales, customer
relationship plays a significant role. To cater to each customer is an art to learn. Having
gone through continuous interactions with customers and working for the sales team in
the bank, I have learnt that it is very important to understand the needs and
requirements of the customer and accordingly sell him the product.
Working with HDFC Bank was a good learning opportunity which enabled me to learn
about its wide range of products and services. The project has helped me to have an
understanding of customer requirements and of the service industry.
50

5.2 CONCLUSION AND RECOMMENDATIONS
Conclusion
It is important in today’s competitive world to create loyal customers and retain them.
Hence customer service is an area where every organization put emphasis on. The
quality of products along with the quality of services influences customers to choose a
particular bank.
HDFC Bank, as its punch line says, ‘we understand your world’, is the largest private
sector bank in India which has shown tremendous growth in the past couple of years
.It’s customer centric focus and aim to satisfy every customer with wide range of
products and services as mentioned in the report has helped the bank to have an edge
above its competitors.
Recommendations
1. The processing time which is now 10 days , must be reduce to 9 days ,so more and
more people can apply for the urgent loan for unforeseen calamities
2. Scheduling regular promotional activities like canopies, company visit etc. to know
the more and more people about the loan facilities based on their salary i.e. “Personal
Loan”.
51
3. More number of scheme is provided to the current salary holder cutomer with HDFC
Bank with different features .

4. Proper and general instruction about the product with latest changes and working
provides to the executive .
5. The interest rates made to be more liberal to cutomer to customer on the basis of
their salary and company profile .
6. The process of funding the loan needs to be more simple so that the customer can
understand the product according to their needs.
7. There should be more executive especially inbig and crowded branches in the main
part of the town.
8. Special schemes should be provided for small scale sector business employees as
well new package of offers and discounts should be provided for high network people
52

ANNEXURE
5.4 Questionnaire
1. Name
2. Age
□ 20-30
□ 30-40
□ 40<
3. Gender
□ Male
□ Female
4. Marital Status
53
□ Married

□ Single
5. Net Take Home Salary Level
□ <Rs.15, 000
□ Rs.15, 000-Rs 30, 000
□ > Rs.30, 000
6. How important is it for an employee to greet you with a smile?
□ Very important
□ Somewhat important
□ Not so important
□ Not at all important
7. How important is the Easy monthly Installment to you?
□ Very important

54
8. How important are the bank Interest Rates according to you?

□ Very important
9. How important are the benefits and facilities provided by HDFC for personal loan to
you?
□ Very important
10. What is your level of satisfaction with respect to the executive services of the bank?
□ Highly satisfied
□ Satisfied
□ Neutral
□ Dissatisfied
55
□ Highly dissatisfied

11. What is your level of satisfaction with respect to customer care measures
undertaken by the bank?
□ Satisfied
□ Neutral
□ Dissatisfied
12. What is your level of satisfaction with respect to the quality of overall service
provided by the bank?
□ Satisfied
□ Neutral
□ Dissatisfied
56

13. What is your level of satisfaction with respect to special schemes offered by the
bank?
□ Satisfied
□ Neutral
□ Dissatisfied
14. What is your level of satisfaction with respect to the response time for grievance
handling?
□ Satisfied
□ Neutral
□ Dissatisfied
57

15. What is your level of satisfaction with respect to the tenure period for the loan
provided by the bank?
□ Satisfied
□ Neutral
□ Dissatisfied
FAQ
Qu.1 What are the benefits of having a Salary Account for my Personal loan?
Ans.1 You get preferred interest rates, priority processing and simpler documentation if
you have a Salary Account with HDFC Bank. This is taken into account at the time of
disbursal of the loan. You can pay through Standing Instructions to debit your HDFC 58
Bank account with the EMI amount

Qu.2 How much loan can I avail of?
You can avail of a loan from Rs 50,000/- to Rs 15,00,000/- depending on your income
and repayment capacity. You can club the income of your spouse if you wish to
increase your loan amount
Qu.3 How do I repay my Personal loan?
You pay the loan in equated monthly installments. The loan will be paid through post-
dated cheques or through Standing Instructions to debit your HDFC Bank account with
the EMI amount. Calculate how much you will repay each month
Qu.4 What security do I need to provide to obtain this loan?
To obtain the loan, there is absolutely no need to provide any security or collateral
Qu.5 What are the loan tenure options?
You can repay your loan over a period of 12 to 60 months
59
Qu.6 How long will it take for me to get my loan?

Once you submit your application form and supporting documents, we shall give
approval within 72 hours provided everything is in order. All loan approvals are at the
sole discretion of the bank.
Qu.7 Can I repay the loan earlier?
You can choose to repay your loan anytime after 6 months of availing the loan at a
maximum pre-payment penalty of 4% of the principal outstanding on your loan.
BIBLIOCRAPHY
BOOKS AND MAGAZINES

➢ Marketing Management- Philip Kotler 60
➢ India Today

➢ In-house journals
➢ Research Methodology
JOURNALS :
1. HDFC bank universe
2. Internal reports
3. Presentation material
4. Brochures
WEBSITES:
. 1. www.hdfcbank.com
2. www.google.co.in
61
3. www.icicibank.com

4. www.citibank.com
5. www.utibank.com
NEWSPAPERS
➢ The Times of India
➢ The Economic Times
➢ Business Standard
62

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HDFC BANK LTD (PERSONAL LOAN) 1

1.1 CENERAL INTRODUCTION

revenue by diversifying into investment banking, insurance, credit cards, depository

services, mortgage, securitization, etc. Liberalization has created a more competitive

environment in the banking sector.

Indian Banking Sector:

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Types of Banks in India:

1.3.2 20 nationalized banks

1.3.3 Regional Rural Banks mainly sponsored by Public Sector Banks 2

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1.3.4 Private Sector Banks

1. Old generation private banks

1.2 INDUSTRY PROFILE

a. Origin and development of the industry

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became more systematic.

▪ Indigenous bills of exchange came also in use.

▪ The maximum rates of interest were fixed.

Development from Independence until 1991

small-scale enterprises, agriculture and commoners, gained prominence. To ensure

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government securities. Of the remaining savings, 40% had to be directed to priority

balance-of-payments crisis was a trigger for far-reaching reforms.

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Developments after 1991

role of the private sector.

4.5% in June 2003. In October 2004 it was slightly increased to 5% to counter

volume and terms of lending.

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Priority sector lending

The Narasimham Committee therefore recommended a reduction from 40% to 10%.

Public Sector Banks

distorted market mechanism led to a deterioration of Public Sector Banks' profitability.

the nationalized banks. In total, the recapitalization amounted to 2% of GDP.

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b. Crowth and present status of the Industry

The financial sector is in a process of rapid transformation. Reforms are continuing as

of the economy. The role of an integrated financial infrastructure is to stimulate and

sustain economic growth.

rates are more in line with market forces.

their margins by constantly innovating and targeting attractive consumer segments.

trade of the country.

institutions meet longer-term requirements. This distinction is getting blurred with

commercial banks extending project finance. 8

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prescribed a risk-based capital adequacy framework for banks by recognizing that

different counterparties had different risks and therefore had to be risk-weighted

c. Future of the Industry

1) industry structure and sector consolidation

2) freedom to deploy capital

4) labour reforms and human capital development

6) support for creating industry utilities and service bureaus. 9

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Management success will be determined on three fronts:

1) fundamentally upgrading organizational capability to stay in tune with the

2) adopting value-creating M&A as an avenue for growth

3) Continuously innovating to develop new business models to access untapped

Changes in regulations and bank capabilities reduce intermediation costs leading to