financial services

PROJECT REPORT ON FINANCIAL SERVICES OF PRIVATE BANKS

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A.) General

BBA VIth SEMESTER(MORNING)(A) BATCH 2010-2013 Submitted To:Submitted By: STUDENT DECLARATION Ms. Rama Mittal Assistant Professor

Anjali Gupta 01714101710

This is to certify that the project report entitled “Financial Services Of Private Banks” submitted for the degree of BBA for Jagannath International Management School, Affiliated to GGSIPU. It‟s a bonafied research work carried by me, Anjali Gupta, a student of Jagannath International Management School.

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL KALKAJI 1

STUDENT DECLARATION This is to certify that the project report entitled “Financial Services of Private Banks” submitted for the degree of BBA for Jagannath International Management School, Affiliated to GGSIPU. It‟s a bonafied research work carried by me, Anjali Gupta, a student of Jagannath International Management School. The assistance and help received during the course of investigation have been fully acknowledged.

Anjali Gupta

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ACKNOWLEDGEMENT I take this opportunity to thank all those who have been of help to me in the completion of this project.

I would like to appreciate the guidance and co-operation provided to me by our project guide Ms Rama Mittal in the completion of this project.

I am also grateful to Dr. Satish Seth (Director of BBA programme) and all the faculty members who have directly or indirectly helped me in preparing this project report.

Name Of The Student: Anjali Gupta

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CERTIFICATE OF COMPLETION

This is to certify that ANJALI GUPTA student of JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI OF BBA OF SIXTH SEMESTER has completed this Project and prepared this report on “FINANCIAL SERVICES OF PRIVATE BANKS” under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Ms. Rama Mittal Assistant Professor

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TABLE OF CONTENTS Description Objective& Significance of the study Company Profile of Yes Bank

Page No. 6 7-12

Financial Services Offered By Yes Bank Company Profile of HDFC Bank Financial Services Offered By HDFC Bank Research Methodology& Data Collection

13-16 17-28 29-37 38-40

Comparison Between HDFC and Yes Bank Analysis & Findings Limitations Conclusion Bibliography

41-42 43-50 51 52 53

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INTRODUCTION

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FINANCIAL SERVICES Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. The term "financial services" became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.

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Our range of products and services fall under the following three broad categories:

Infrastructure Banking Unit (IBU): This unit provides a full range of advisory and credit linked products to clients with a special focus on the infrastructure sector. We meet the financial needs of clients operating in the Power, Telecom, Mining, Oil and Gas, Transportation and Wind Energy segments. We assist our clients to obtain funding for projects and also offer end- to-end advisory services from the planning stage to financial closure.

Structured and Project Finance Unit (SP & F): The SP & F unit offers structured and project finance expertise to non-infrastructure clients. The areas of specialization include: a. Securitization- We provide solutions that offer companies access to strategic sources of fundingby converting assets with probable and predictable cash flows into a source of capital. This alters the risk profile of the corporate, provides the necessary liquidity and offers investors an opportunity to gain higher yields while taking acceptable risks. b. Structured Liability Products- The SP and F group, in conjunction with the Debt Capital Markets Group, offers liability products to a range of financial and retail clients in packaging, structuring and placing ABS, MBS, CLOs and CDOs to generate cost efficient liabilities for our clients. c. Debt- Syndication- We provide debt solutions from local and international markets to both private and public sector institutions. Our strong relations with Borrowers, other banks and Institutional investors help our clients to fulfil their desired financing requirements. d. Leverage Finance- This encompasses the origination, structuring, underwriting and participation through Funding in Leveraged Finance transactions, including leveraged Buy-Outs, Take-overs and General Acquisition Finance. e. Asset and Tax based structures- Comprehensive solutions to provide tax benefits, finance for physical assets and advisory services for leases.

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Financial Restructuring Unit (FRU): This unit provides specialized advisory services on financial restructuring, with expertise in the area of stressed assets. We offer our clients expert advice and creative product solutions to overcome balance sheet and financing contraints. The team also assists financially distressed companies in the creation and implementation of comprehensive financial restructuring packages.

Infrastructure Banking and Project Finance: Driven by strong credit appraisal skills, knowledge based approach and experienced human capital, this team has created an identity in the infrastructure financing space. The IBPF team has deep understanding of the international best practices in infrastructure finance, due diligence and project structuring skills. The knowledge banking managers have proven project financing capabilities in several infrastructure sectors: 

Power



Transportation



Telecom



Urban Infrastructure

The team had several marquee transactions to its credit, with some of the best names in the industry.

Structured Finance The team leverages its strong regulatory and legal understanding to structure complex transactions, thus assisting clients in obtaining superior financial returns in a risk mitigated manner due to substantial knowledge arbitrage over the market. Landmark transactions in current financial year – Providing Microfinance Institutions (MFIs) access to the debit capital market. 

Discounting of rental receivables



Securitization transaction



Agriculture loan pool buyouts



Microfinance loan pool buyouts 9

Realty Banking The team provides advisory and funding services like project conceptualization and structuring, JV partner identification, and raising/arranging financing in the commercial and residential real estate sectors across diverse geographies and Special Economic Zones. The team has successfully completed several transactions involving some of the best names in the industry since inception.

Advisory and Syndications The team provides comprehensive syndication services to clients of Yes Bank. With its proven domestic and international banking credentials, the team caters to all the financing requirements of corporate as well as specialized financing for acquisitions, asset purchases, sell downs and leveraged buyouts. Yes Bank was ranked No. 21 in the Syndicated Loan Ranking (India) and No. 7 in the Syndicated Loan Ranking – Indian Rupee Loans by Thomson Reuters.

Project Equity The Private Equity team is furthering Yes Bank‟s focus by developing specialist funds that will leverage the domain expertise that Yes Bank has built over the years. Currently, it is co-sponsoring the South Asia Clean Energy Fund (SACEF) in collaboration with Global Environment Fund, USA (GEF). SACEF is a USD 200 million fund targeting investments in clean energy, clean technology and energy efficiency across India, Sri Lanka, Nepal, Bangladesh.

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OBJECTIVE OF THE STUDY

 To know the various financial services of private banks.  To know the method of banking.  To know the banking and financial terms used in day-to-day life and which plays an important role in our life.

SIGNIFICANCE OF THE STUDY The study is useful for the student as he/ she gained knowledge about various financial services of bank, the working of the bank and also about the competitors of the bank that plays an important role in the making and implementation of the strategy.

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COMPANY PROFILE OF YES BANK

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YES BANK Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with the duo holding a collective financial stake of 27.16%. YES BANK has received significant national and international recognitions which include Dr. Rana Kapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the Decade (2001-2010) by Bombay Management Association; Business Standard Banker of the Year - 2011; India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. YES BANK received certification for its 'Complaints Management System (ISO 10002:2004)' by the British Standard's Institution (BSI) as on August 25, 2010. The Bank was also awarded the ISO 27001:2005 Certification for its 'Information Security Management System' by BSI. In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of the bank, to further accelerate its business growth in the retail banking space, with the objective to achieve by 2015, a balance sheet size of Rs.1,50,000 crore, deposits of 125,000 crore, advances of 100,000 crore, a pan India network of 900 branches and a human capital base 12750 by 2015. YES BANK deals in the following 5 business lines

Corporate and Institutional Banking



Commercial Banking



Branch Banking



Business Banking



Retail Banking

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CORPORATE AND INSTITUTIONAL BANKING The Corporate & Institutional Banking (C&IB) business at YES BANK provides financial and risk management solutions to clients.

COMERCIAL BANKING With its sector-specific products and services under commercial banking YES BANK supports Emerging Corporates.

BRANCH BANKING Business and Retail Banking

BUSINESS BANKING YES Bank caters to all the service requirements of these SME's across various product segments like Cash Management, Payment Solutions, Direct Banking, Liabilities and Investment Management, Trade services and advisory.

RETAIL BANKING Retail Banking caters to the banking & wealth management needs of individuals and small businesses. Customers are currently being served through a branch network, of over 360 branches across the country with 650+ ATMs, and Internet Banking facilities.

BUSINESS STRATEGY: Knowledge Banking:One of the strengths and differentiating features of Yes Bank is its knowledge banking approach that is the essence of all offerings to its customers. Knowledge has been institutionalized as a key ingredient in all internal and external processes and utilized to create customized solutions for the clients‟ specific requirements.

Technology and Operations:As a new generation Bank, Yes Bank has the advantage of accessing the latest available technology. The Bank has taken a

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calibrated decision to invest in the best IT system and practices in order to make its technology platform a strategic business tool for building a competitive advantage.

Responsible Banking: Yes Bank has a vision to champion „Responsible Banking‟ in India, where the concepts of Corporate Social Responsibility („CSR‟) and sustainability are integrated in its Business focus.

Human Capital: At YES BANK, they look to offer comprehensive banking and financial solutions. Which is why, they have inducted top quality Human Capital across all our banking functions, including Corporate & Institutional Banking, Financial Markets, Investment Banking, Business & Transactional Banking and Retail Banking & Wealth Management.

INDIAN FINANCIAL INSTITUTIONS IFI helps various relationship and product managers to offer a wide variety of products including Debt, Trade Finance, Guarantees, Treasury Services, Working Capital Finance, Cash Management & Transactional Services, Liabilities and Investment Management, and Liquidity Management Solutions to its customers.

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SWOT ANALYSIS Strength: High Quality, Customer Centric, Service Driven, Private Indian Bank, Catering to the “Future Industries Of India”.  The Bank has adopted International Best Practices, the highest standards of service quality and operational excellence.  World-Class Team, based on Professional Recruitment Methodologies, and attract the best talent in the industry.  Building learning and development solutions that continuously enhance employee value, high performance culture.  Credible and transparent performance management process.  Robust rewards and recognition strategy.  Strong technology, well capitalized.  Total Deposits Rs1,61,694 million.  Net Advances Rs124,031 million.  Net NPA 0.33%.  Capital Adequacy Ratio 16.6%.

Weakness: Less wide network.  Not in every state.  Less promotional activity.  Unknown brand.

Opportunity: Very wide market.  Other activity (insurance, stock broking, mutual fund).  Wide scope in rural area.

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Threat: Very high competition private bank market (ICICI bank, HDFC bank), in public sector (BOB, PNB).  Government policy.  Other better saving, investment opinion available (like insurance, mutual fund, real-estate, gold).  Capital market slow down.  Rising rates.

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COMPANY PROFILE OF HDFC BANK

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HDFC BANK HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on December 2012, HDFC Bank has 2,776 branches and 10,490 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online real-time basis. As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5,167.07 crore (US$940.41 million), up 31.6% from the previous fiscal. On March 14, 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high ranking officials and some employees of HDFC bank willing to turn black money into white which is violation of Money Laundering Control Act. After this The government of India and Reserve Bank of India have ordered an inquiry.

HISTORY HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies. Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs.

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1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

 BUSINESS FOCUS HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading And Equity research.

 WHOLESALE BANKING SERVICES For customers from ongoleBlue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of the above services to its corporate customers, mutual funds, stock exchange members and banks.

 RETAIL BANKING SERVICES HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the Master Card Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man power in Banking Industry HDFC Bank's retail services have become by and large the best in India and since the contribution to CASA i.e. total number of current and savings account of more than 50%, HDFC BANK has full potential to become India's No.1 Private Sector Bank. 20

 TREASURY Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

 DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai and as of March 31, 2012, the Bank‟s distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and 10000 ATMs in 996 cities as of October,2012.

 CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's AmericanDepository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign InstitutionalInvestors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Sharesare listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

 TIMES BANK AMALGAMATION 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 withHDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved bythe 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 acquisitionaddedsignificant value to HDFC Bank in terms of increased branch network, expanded geographicreach, enhanced

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customer base, skilled manpower and the opportunity to cross-sell and leveragealternative delivery channels.

 PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977,the Corporation hasmaintained a consistent and healthy growth in its operations to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to different market segments and alsohas a large corporate client base for its housing related credit facilities. With its experience in thefinancial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

RATING  Credit Rating The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high" .The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the

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rating "AAA /Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.  Corporate Governance Rating The bank was one of the first four companies, which subjected itself to a Corporate Governanceand Value Creation (GVC) rating by the rating agency, The Credit Rating Information Servicesof India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicatesthat the bank's capability with respect to wealth creation for all its stakeholders while adoptingsound corporate governance practices is the highest.

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PRODUCT SCOPE HDFC Bank offers a bunch of products and services to meet the every need of the people. Thecompany cares for both, individuals as well as corporate and small and medium enterprises.For individuals, the company has a range accounts, investment, and pension scheme,different types of loans and cards that assist the customers. The customers can choose thesuitable one from a range of products which will suit their life-stage and needs.For organizationsthe company has a host of customized solutions that range fromFunded services, Non-funded services, Value addition services, Mutual fund etc. Theseaffordable plans apart from providing long term value to the employees help in enhancinggoodwill of the company.The products of the company are categorized into various sections which are as follows: 

Accounts and deposits.



Loans.



Investments and Insurance.



Forex and payment services.



Cards.



Customer center.

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PRODUCTS AND SERVICES AT GLANCE Personal Banking Services: A. Accounts and Deposits Savings Account 

Regular Savings Account

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Savings Plus Account

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Savings Max Account

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Senior Citizens Account

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No Frills Account

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Institutional Savings Account

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Payroll Salary Account

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Classic Salary Account

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Regular Salary Account

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Premium Salary Account

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Defence Salary Account

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Kid's Advantage Account

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Pension Saving Bank Account

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Family Savings Account

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Kisan No Frills Savings Account

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Kisan Club Savings Account

Current Account 

Plus Current Account

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Trade Current Account

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Premium Current Account

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Regular Current Account

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Apex Current Account

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Max Current Account

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Reimbursement Current Account

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Fixed Account 

Regular Fixed Deposit

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Super Saver Account

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Sweep-in Account

Recurring Deposit Demat Account Safe Deposit Locker B. Loans  Personal Loans  Home Loans  Two Wheeler Loans  New Car Loans  Used Car Loans  Overdraft against cars  Express loans  Loan against Securities  Loan against Property  Commercial Vehicle Finance  Working Capital Finance  Construction Equipment Finance C. Investments and Insurance  Mutual Funds  Insurance  Bonds  Financial Planning  Knowledge Centre 26

 Equities & Derivatives  Mudra Gold Bar D. Forex Services  Trade Finance  Traveler‟s Cheques  Foreign Currency Cash  Foreign Currency Drafts  Foreign Currency Cheque Deposits  Foreign Currency Remittances  Forex Plus Card E. Payment Services  Net Safe  Prepaid Refill  Bill Pay  Direct Pay  Visa Money Transfer  E-Monies Electronic Funds Transfer  Excise and Service Tax Payment F. Access Your Bank- One View  Insta Alerts  Mobile Banking  ATM  Phone Banking  Branch Network

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G. Cards  Silver Credit Card  Gold Credit Card  Woman‟s Gold Credit Card  Platinum Plus Credit Card  Titanium Credit Card  Value plus Credit Card  Health plus Credit Card  HDFC Bank Idea Silver Card  HDFC Bank Idea Gold Card

Wholesale Banking Services: 

Funded Services



Non Funded Services



Value Added Services



Internet Banking



Clearing Sub-Membership



RTGS- Sub Membership

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Fund Transfer

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ATM Tie-Ups

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Corporate Salary A/c

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Tax Collection



Financial Institutions

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Mutual Funds

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Stock Brokers

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Insurance Companies

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Commodities Business

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Trusts

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NRI Banking Services:  Rupee Saving A/c  Rupee Current A/c  Rupee Fixed Deposits  Foreign Currency Deposits  Accounts for Returning Indians  Payment Services  Net Safe  Bill Pay  Insta Pay  Direct Pay  Visa Money  Online Donation  Remittances

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FINANCIAL SERVICES Working Capital Finance: Turnover Less Than Equal To Rs.5 Crores HDFC Bank offers you a unique range of working capital facilities at your door-step. We offer affordable, convenient financial solutions which are of paramount importance in running an efficient enterprise. You can choose from the range of customized working capital loans for smooth business operations. Types of Working Capital 

Cash Credit / Overdraft



Term Loan (TL)



Letter of Credit (LC)



Bank Guarantee (BG)

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Packing Credit (PC)

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Post Shipment Finance



Bill Discounting

Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises, Retailers, Stockist, Distributors,Merchant Establishments,Departmental Stores, Supermarkets, Restaurants, Multi Brand Outlets etc.

Products Offered 

Quickdraw - Working Capital Facilities for Traders / Retailers ranging from Rs.2 Lacs to Rs.10 lacs in the quickest possible time



Valuedraw - Working Capital Facilities from Rs.10 Lacs to Rs.25 lacs against wide range of collaterals adding more value to Business

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Elitedraw - Take your business to Elite heights with our Working Capital Solutions for from Rs.25 lac onwards against wide range of collaterals.

Turnover Greater Than Rs.5 Crores

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Working Capital Finance is financial assistance given to entities to help them run their business. There are many different types of Working Capital Finance .These are offered at all our branch locations. Types of Working Capital 

Cash Credit / Overdraft



Letter of Credit



Bank Guarantee

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Buyers Credit



Short Term Finance



Packing Credit



Post Shipment Limits



Bill Discounting



Structured Cash Flow Financing

Working Capital For Contractors: Features And Benefits 

Uses commercial/construction equipment as security collateral



Quick processing of loan



Attractive rate of interest



Convenient facilities like Internet Banking and Phone Banking facilities



Multi-location banking

Products Offered: Fund based 

Cash Credit facility



Overdraft facility



Working Capital demand loan



Bill/Invoice discounting

Non Fund based 31



Bank Guarantee (BG)



Letter of Credit (LC)

Commercial/ Construction Equipment Finance: Features 

Avail Commercial/ Construction Equipment Finance on an entire range of equipment at attractive interest rates



Choose among various types of loans that suit your business requirements

There is no need to shop around anymore for loan options to purchase Commercial/ Construction equipment, Earth Moving, Material handling Equipment, Term loans, Working Capital requirements, Bank Gurantee or LC, that your business may require. Choose HDFC Bank's Commercial/Construction Equipment Loan and you will get the best terms and interest rates. You may avail of a finance facility for your required equipment from any of your preferred manufacturers including JCB, Telcon, L&T Komatsu, Caterpillar, Volvo, Escorts, Case, Schwing Stetter, Hyundai, Terex, Ace, Liugong, Greaves, Sany, Putzmeister, Atlas Copco, Apollo and many more. We offer: 

New/Used Commercial/Construction Equipment Loans

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Working Capital Finance – CC & OD facilities

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Bank Guarantees/LCs

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Bill Discounting / LC discounting

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Inventory Funding /Trade advance/ CC /OD for Dealers

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Payment Solution, Cash Management Services & Forex Solutions, etc.

Benefits 

Receive up to 100 % finance for your Commercial/ Construction Equipment*



Take advantage of some of the best interest rates along with Speedy processing of loan.

You can avail of the following benefits on our Construction Equipment Finance: 32



Up to 100% financing of Construction Equipment*



Attractive interest rates*

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Up to 60 month tenure for loan*



Simpler documentation and quick processing



Reduced down payments



Customized EMI structure to suit your business needs

Working Capital Finance To Transporters: Features And Benefits 

Loan amount from Rs.25 lacs onwards



Taking Commercial Vehicle as security collateral



Internet Banking & Phone Banking Facilities



Multi-Location Banking



Easy documentation through the different process



Fast processing that helps at every level



Benefits of at par cheque facility

Products Offered: Fund based 

Cash Credit facility



Overdraft facility



Working Capital demand loan



Bill/Invoice discounting

Non Fund based 

Bank Guarantee



Letter of Credit

Term Loans: Features 

Customised products to meet your requirements 33



Products offered at all branch locations

Benefits 

Low-cost credit



Cash-flow financing

Term Loans are offered to businesses up to a tenure of 5 years for their expansion, capital expenditure and for fixed assets. HDFC Bank also offers Short Term Finance options that are structured to meet your individual needs.

Business Loans: 

These funds can be used for business expansion, working capital, your child's education or home renovation



No collateral or guarantor surety required. A guarantor becomes a coendorser and assumes liability in event of default.

Features 

Unsecured Loan to self employed businessmen involved in Manufacturing, Trading and Service Industry.



Loan Amount up to Rs.15 Lakhs. (Up to Rs.30 Lakhs in selected locations).



Flexible repayment options ranging from 12 – 36 Months.



Hassle free processing.



Speedy loan approval.



Convenience of Service at your doorstep.

Benefits 

The funds can be used for business expansion, working capital, child's education or home renovation.



No collateral/ Guarantor/ Security required.

Business Loan- Drop Line Overdraft 

Get unsecured DOD upto Rs.5 lac.



Pay interest only on utilised amount. 34

Features 

Unsecured Drop-line Overdraft facility



Interest will be charged on utilisation



Convenience of service at your doorstep

Benefits 

The funds can be used for business expansion, working capital, child's education or home renovation



No collateral/ guarantor/ security required

Loans For Professionals Features 

Hassle free processing



Speedy loan approval



Convenience of service at your doorstep

Benefits 

The funds can be used for business expansion, renovating your hospital/clinic/office, buying new medical equipment, working capital, child's education or home renovation



No collateral/ Guarantor/ Security required

Loans Against Assets: Loan Against Securities 

Get liquidity from your investments, without selling them



Get upto 80% loan against the value of your securities. Term loans on select securities offered too.

Loan Against Property 35



Do you own a property? Why not avail a loan against it?



Lower EMI owing to long repayment tenure



Flexible product offering – Term Loan & Overdraft facility available



Residential and commercial – both types of properties accepted.

Loan Against Rental Receivables 

Maximize the benefits of future rents on your commercial property today.



Get additional funds through expected rental cash flows for growing your business, funding personal requirements or adding to an existing loan.

Healthcare/ Medical Finance: Features And Benefits 

Customised and structured solutions



Tenures that range between 12 to 84 months



Competitive Solutions at competitive prices

Types Of Loans 

Asset / Medical Equipment Finance



Infrastructure Loan



Balance Transfers of existing Term Loans or Working Capital



ME-OD Facility



Working Capital Finance

Commercial Vehicle Finance: Features 

Commercial Vehicle finance on entire range of vehicles starting from small 1.5 ton truck to heavy one to 49 tones GVW (Gross Vehicle Weight).



Choose amongst 4 types of loans that suit your business requirements.

Benefits 36



Finance up to 100 % for your commercial vehicles.



Take advantage of some of the best interest rates along with a customized EMI repayment structure.

Rural Loans: Retail Agri Loans 

Indian farmers can now swipe a Kisan Gold Card to use their loan for meeting agricultural and production expenses.



Avail any time banking and hassle free credit options.



Get an Accident Insurance Cover of Rs.2 lakh absolutely FREE with this card.

Tractor Loans 

Choose HDFC Bank's Tractor Loans to purchase your tractor for farming or commercial purposes.



Get upto 90% finance on the tractor you want to buy.

Warehouse Receipts Loans 

A Farmer can now avail loan against the commodities stored in the godown / warehouse.



Loans from Rs.1 Lakh onwards upto Rs.25 Lakhs, depending on your needs.



Farmer can hold the stock and get benefit of better pricers.

Agri Business Credit 

Choose from a gamut of products under HDFC Bank's Agri Business Credit for your Working Capital Finance for Agri Commodity Segment.



Tailor made product for Agri Input Dealers.

37

38

RESEARCH METHODOLOGY & DATA COLLECTION

39

RESEARCH METHODOLOGY Research Methodology is the investigation of specific problem in detail. At first problem is defined carefully for conducting research. There should be a good research plan for conducting research. No research can be done without data collection. After all this analysis is made for getting solution for problem. 

Defining the problem



Defining the sampling plan



Collection of data



Analysis and interpretation

Defining the problem Defining the research problem is first necessary step for any research. This work should be done carefully. Sampling plan The sampling plan calls for three decisions. A. Sampling unit: I have completed my survey in SOUTH DELHI. B. Sample size: The selection of 20 respondents. The selection of the respondent was done on the basis of simple random sampling. C. Contact methods: I have conducted the respondent through personal interviews. Research Instrument A close ended questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to be filled by various respondents. Collecting the Information After this, I have collected the information from the respondent with the help of questionnaire.

40

Analyse the Information The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data and developed frequency distributions. Thus the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were to redder impact of the study. Presentation of Findings This was the last stop of the survey.

TYPES OF DATA COLLECTION 1) Primary data: - The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. Methods of primary data:  Observation method.  Interview method.  Through questionnaires.  Through schedules.

2) Secondary data:-The secondary data are those data which have already been collected by someone else and which have already been passed through the statistical process. Methods of secondary data:  Various publication of the central, state or local government.  Books, magazines and newspaper.  Reports and publications of various association.  Technical and trade journals.  Public records and historical documents etc. I have chosen primary and secondary data to collect the information in my project report.

41

COMPARISON BETWEEN HDFC BANK & YES BANK ATTRIBUTES

HDFC BANK

YES BANK

Business Loans

Business Loans, Loans against

Business Loans,Loans

Deposit, Professional Loan,

against Deposit,

Project Finance, Term Finance,

Professional Loan, Project

Trade Finance

Finance, Term Finance, Trade Finance

Cards

Corporate Credit Card, Credit

Debit Card

Card, Debit Card, E Shop Card, Loyalty Cards, Meal Card, Travel Currency Card Account Types

Current Account, Demat Account,

Current Account, Demat

Fixed Deposit Account, Recurring

Account, Fixed Deposit

Deposit Account, Saving Account

Account, Recurring Deposit Account, Saving Account

Bank Type

Private

Private

Personal Loans

Commercial Vehicle Loan, Consumer Goods Loan, Educational Loan, Four Wheeler Loan, Home Improvement Loan, Housing Loan, Loan against Deposit, Loan against Gold, Loan

_

against Property, Loan against Share, Loan against Vehicle, Personal Loan, Two Wheeler Loan Business Hours

Monday to Friday 9:30 a.m. to

Monday to Saturday 10:00

4:00 p.m., Saturday 9:30 a.m. to

a.m. to 4:30 p.m.

12:30 p.m. Investment

Bonds, Equity, Fixed Deposit,

Equity, Fixed Deposit,

Products

Flexible Deposit, Insurance,

Flexible Deposit, Stock

Mutual Fund, Stock Invest

Invest

42

Services

Card to Card Money Transfer,

Demat Services, Mobile

Currency Exchange, Demat

Phone Banking, Multi City

Services, Direct Tax Payment,

Cheque Facility, Net

Electronic Clearing Service,

Banking, Personal Tax

Locker Facility, Mobile Phone

Assistance and Investment,

Banking, Multi City Cheque

Portfolio Management,

Facility, Net Banking, Personal

Wealth Management

Tax Assistance and Investment,

Service

Portfolio Management, Travellers Cheque, Wealth Management Service

43

ANALYSIS AND FINDINGS

44

HDFC BANK Q1. How do you rate HDFC Ltd. in the following services? a) Interest Rates b) Repayment Period c) Customer Care

Percentage(%)

d) Transaction Period

70 60 50 40 30 20 10 0

Excellent Very Good Good Poor Very Poor

Interest Rates

Repayment Period

Customer Care

Transaction Period

8 60 28 4 0

40 56 4 0 0

44 16 12 4 24

20 52 24 0 0 Excellent Very Good

Services Offered by HDFC

Good Poor Very Poor

45

Q2.What is the reason of your loan transfer from HDFC Ltd.?

40 35

Percentage(%)

30 25 20 15 10 5 0

Percentage(%)

Higher Rate Of Interest 40

Less Lack of Longer Loan Informatio Sanction Amount n Period 16 16 8

Annual Rest 20

Reasons Of Loan Transfer

46

Q3. In what terms / services do you find the other institutions (in which your loan is transferred) is better than us?

Better Services

20% Customer Care

44%

Full Loan Amount Sanctioned

24%

Low Rate Of Interest

12%

47

QUESTIONNAIRE Q1. How do you rate HDFC Ltd. in the following services? 1) Interest Rates 2) Repayment Period 3) Customer Care 4) Transaction Period

A) Excellent

B) Very Good

C) Good

D) Poor

Q2. What is the reason of your loan transfer from HDFC Ltd.?

A) Higher Rate of Interest B) Less Loan Amount C) Lack of Information D) Longer Sanction Period E) Annual Rest

Q3. In what terms / services do you find the other institutions (in which your loan is (transferred) is better than us?

A) Better Services B) Customer Care C) Full Amount Sanctioned

48

YES BANK 1. Are you aware of all products or schemes offered by the banks? a) YES b) NO

40%

yes

no

60%

2. How do you find the service of the bank? a) Good b) Ok c) No comments

good 50%

ok 45%

no comments 5%

3. Do you know about these products of the banking industry? a) Savings a/cyes/no b) fixed deposits

yes/no

c) current a/c

yes/no

49

d) de-mat a/c

yes/no

e) credit cards

yes/no

f) insurances

yes/no

g) mutual funds

yes/no

h) loans

yes/no

saving a/c fixed deposit

5%

current a/c

15%

demat a/c 15%

40%

credit cards 5% 10%

insurances

5% 5%

mutual funds loans

4. Which of these products are you interested in? a) Savings a/c

yes/no

b) Fixed deposits

yes/no

c) Current a/c

yes/no

d) De-mat a/c

yes/no

e) credit card

yes/no

f) Insurances

yes/no

g) mutual funds

yes/no

h) Loans

yes/no

50

saving a/c fixed deposit

5%

19% 23%

current a/c demat a/c

24%

credit cards

14% 10%

insurances mutual funds

3% 2%

loans

5. Which of the following innovative services of the bank would you like to go in for? a) Phone banking b) A T M c) Net banking d) Mobile banking e) Bill payment f) None of these g) All of these

5%

5%

phone banking 10%

10%

ATM net banking

10%

mobilebanking 60%

none of these all of these

LIMITATIONS 51

1. General survey is more biased: General Survey is more biased because few institutions were not ready to give the exact financial details.

2. Less responsive communication: General Survey was found to beless responsive because of the reason that institutions &organizations did not want to respond to the questionnaire due to lack of time & non willingness.

3. Time consuming: The General Survey was time consuming because it take time to reach to different institutions & ask them certain related questions in there different areas.

52

CONCLUSION There is a stiff and tough competition in the private sector banking and especially cutthroat level at Retail Banking section. The services offered by various banking sections such as Credit Card, Debit Card, ATMs, Savings Banks Account, Current Account and so on enable me to find out what the customer of today thinks about the services the banks are providing and made a significant distinguish between what the performance of Yes Bank to that of the HDFC Bank and how prompt they are. Also, I learn how to make out and induce customers about the prospects of an organization upon which he is going to save his/ her deposits for a considerable period of time.

53

BIBLIOGRAPHY o Jain Nabhi Kumar, Manuals of SEBI – Guidelines, NabhiPublications, New Delhi, August 1996 o Kothari C.R., Research Methodology, New Delhi, Wishwa Prakashan,1990 o Kotler P., Marketing Management, Prentice Hall of India Private Limited, New Delhi, 1999 o R.P. RUSTAGI - Financial Management, Galgotia Publishing Company, 2000

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