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CHAPTER 1
INTRODUCTION
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1.1 INTRODUCTION TO THE NET BANKING
With cyber cafes and kiosks springing up in different cities access to the Net is going to be easy. Net
banking (also referred as e banking) is the latest in this series of technological wonders in the recent
past involving use of Internet for delivery of banking products & services. Even the Morgan Stanley
Dean Witter Internet research emphasized that Web is more important for retail financial services
than for many other industries.
Internet banking is changing the banking industry and is having the major effects on banking
relationships. Banking is now no longer confined to the branches were one has to approach the
branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true
Internet banking, any inquiry or transaction is processed online without any reference to the branch
(anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to
have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an
exception in many developed countries due to the fact that it is the cheapest way of providing
banking services.
1.2 MEANING OF NET BANKING
Net banking is a concept which enables everyone to conduct business with a bank from the comfort
of home or office.
Net banking means application of electronic technology towards transfer of funds through an
electronic terminal, computer or magnetic tape to conduct various transactions like cash receipts,
payments, transfer of funds, etc. It is often known as banking on net or e banking.
1.3 DEVELOPMENT OF NET BANKING IN INDIA
The financial reforms that were initiated in the early 1990s and the globalization and liberalization
measures brought in a completely new operating environment to the banks. The bankers are nowoffering innovative and attractive technology-based services and products such as Anywhere
Anytime Banking, Tele-Banking, Internet Banking, Web Banking, Net Banking, Mobile
Banking, etc. to their customers to cope with the competition. The process started in the early 1980s
when Reserve Bank of India (RBI) set up two committees in quick succession to accelerate the pace
of automation of operations in the banking sector. A high-level committee was formed under the
chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for
computerization and mechanisation in the banking industry over a five-year time frame of 1985
1989. The focus by this time was on customer service and two models of branch automation were
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developed and implemented. Having gained experience in the earlier mode of computerization, the
second Rangarajan committee constituted in 1988 drew up a detailed perspective plan for
computerization of banks and for extension of automation to other areas such as funds transfer, e-
mail, BANKNET, SWIFT, ATMs, net banking, etc. The Government of India enacted the
Information Technology Act, 2000 (generally known as IT Act, 2000), with effect from 17 October
2000 to provide legal recognition to electronic transactions and other means of electronic commerce.
RBI had set up a Working Group on net banking to examine different aspects of net banking. The
Group had focused on three major areas of net banking such as
(1) Technology and security issues,
(2) Legal issues and
(3) Regulatory and supervisory issues.
RBI had accepted the recommendations of the Working Group, and accordingly issued guidelines
on internet banking in India for implementation by banks. The Working Group has also issued a
report on net banking covering different aspects of net banking.
Internet banking in India is currently at a nascent stage. While there are scores of companies
specializing in developing internet banking software, security software and website designing and
maintenance, there are few online financial service providers. ICICI bank is the first one to have
introduced net banking for a limited range of services such as access to account information,
correspondence and, recently, funds transfer between its branches. ICICI is also getting into e-
trading, thus offering a broader range of integrated services to the customer.
Several finance portals for provision of non-banking financial services, e-trading and e-broking have
come up. Commercial applications such as Electronic Bill Presentment (EBP) and Procurement
systems may not be introduced in India immediately, but are likely to have a greater impact than the
retail applications. The corporate sector is adequately computerized and has already recognized theimportant role of e-commerce in future. Increasingly, companies are setting up websites even where
there are no immediate tangible benefits to them from doing so.
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1.4 NET BANKING IN INDIA RBI GUIDELINES
In India, internet banking or net banking is in rudimentary stage. In order to promote safety and
soundness of internet banking activities, the RBI constituted a Working Group on Internet Banking.
The Group issued guidelines in June 2001. The Group divided the internet banking products in India
into 3 types based on the levels of access granted. They are
Information Only System
Electronic Information Transfer System
Fully Electronic Transactional System.
1.5 ADVANTAGES AND DISADVANTAGES OF NET BANKING
Internet Bankingalso has its advantages and disadvantages. Below are mentioned the most popular
advantages of using Internet Banking along with some unavoidable disadvantages.
The advantages include
Convenience - online banking sites never close; they're available 24 hours a day, seven days a
week, and they're only a mouse click away;
Portability you now have access to money whenever there is an emergency, whether or not
you are in the country;
Transaction speed - online bank sites generally execute and confirm transactions at the same
rate or quicker than, ATM processing speeds;
Effectiveness they offer sophisticated tools, including account aggregation, stock quotes
and rate alerts to help you manage all of your assets more effectively.
Reduction in workload - No more standing in long lines at the bank, eliminating endless
paper based bank statements.
The disadvantages include
Lack of Computerization - which relates to virtual banks, revolves around the lack of
ATMs;
Start-up may take time - In order to register for your bank's online program, you will
probably have to provide ID and sign a form at a bank branch which can be time consuming;
Learning curve - Banking sites can be difficult to navigate at first;
Distrust of the User - the possibility of frauds, making errors etc.
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Problem of Security Various sites are not properly looked at to ensure whether customers
money is safe in cyber world or not.
1.6 TRADITIONAL BANKING VS NET BANKING
Net banking or internet banking works much like traditional banking. The primary difference is thatin net banking account and information is accessed, payments are made and statements reconciled
using computer rather than paper or the phone to complete transactions. Instead of going down to
local branch office when one bank online he/she can accomplish multiple tasks at once with the click
of a button.
Online banking is rapidly becoming more and more popular as consumers recognize the advantages
online banking has to offer. For one most banks charge fewer fees if you take advantage of their
onlinebanking services. You can also stop receiving paper statements if you like in many cases and
conduct 95% of your business over the Web when you take advantage of Internet banking.
What to Internet Banks do? The same things traditional banks do. They hold onto our money and
lend it out to others respectively. The manage loans and help us keep track of ourfinances. Chances
are if you own abank account at a traditional bank they offer some type of Internet banking or online
services. The next time you stop into your branch office you should ask them about online banking.
You may find once you start you have no desire to go back to traditional banking.
For those that have a hard time keeping track of paper statements, Internet banking is a life saver.
Internet banking is also advantageous for frequent travelers that need to keep a close eye on their
finances from abroad.
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CHAPTER 2
RESEARCH DESIGN
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NEED, SCOPE AND OBJECTIVES OF THE STUDY
2.1 NEED OF THE STUDY
After conducting a review of researches done by various professionals a gap have been identified.
The researchers had studied the aspects of internet banking, its introduction, its development,
adoption by the customers, customer satisfaction about this service, its success and security related
issues. But a very few researchers had studied the net banking service with respect to the HDFC
Bank. This gap had been identified and it had led to the present research being undertaken.
2.2 SCOPE OF THE STUDY
This study deals with the factors which deal with theCustomer satisfaction towards the Internetbanking Services. This study also gives insights to the necessary actions to be taken by the HDFC
net banking service.
2.3 OBJECTIVES OF THE STUDY
The current study was undertaken to achieve the following stated objectives:
1. To study the awareness level of customers who are using internet banking services offered by
HDFC Bank.
2. To identify the factors influencing customers to use internet banking services offered by HDFC
Bank.
3. To evaluate customer satisfaction of the customers using HDFC internet banking services.
4. To study the flexibility of the internet banking services offered by HDFC Bank.
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REVIEW OF LITERATURE
2.4 Literature Review
A number of researches have been conducted on net banking and its adoption, development and its
perils. Due to shortage of time and resources, a review of all the past researches done could not be
mentioned in this research project. So, a snapshot of some of the reviews has been presented.
Nathet.al (2001) in their study found that in every industry, E-commerce is revolutionizing the way
business is conducted. New business models are replacing outdated ones and organizations are
rethinking business process designs and customer relationship management strategies. Banks are no
exception to this transformation. This study examines bankers' views on providing banking services
to customers using the web. Specifically, it addresses issues such as the strategic need for Internet
banking, its effect on customer-bank relationships, and customers' experiences in Internet banking.
Data collected from 75 banks show that most banks do not yet offer full-fledged Internet banking.
However, most have plans to do so. Furthermore, bankers see Internet banking as a strategic
opportunity that can reduce transaction costs, enhance customer service, increase the customer base
and improve cross-selling opportunities. Also, Internet banking is perceived more favorably by
banks that offer it compared to those that do not.
Corrocher(2002) in his study examined the drivers of the adoption of the Internet banking, in order
to understand its role with respect to the traditional banking activity and to offer a comprehensive
picture of the diffusion of such a technology within the sector. In doing so, it analyses the role of
firm-specific and non firm-specific (technology, market, environment) characteristics in influencing
the decision to adopt the new technological platforms to perform on-line banking transactions within
the retail segment of the financial sector. The main purpose of this paper is to investigate the
relationship between the Internet banking and the traditional banking activity, in order to understand
if these two systems of financial services delivery are perceived as substitutes or complements by thebanks.
Leary (2002) in his study examined how Internet or electronic banking is slowly but surely reviving
itself after numerous attempts by various financial institutions and financial intermediaries in the
1970 and 1980s. The standardization in technologies and the public's familiarity with the use of
personal computers and the Internet have made the Internet bank or Internet banking site easier,
cheaper and more cost effective than ever before. This paper discusses the coming of age of Internet
banking, the opportunity for Internet banking and some of the obstacles and procedures that must be
followed in order to develop a sound Internet banking presence.
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Bradley & Stewart (2003) conducted a research in which they studied the factors driving the
adoption of internet banking. The financial services environment has been subject to changes on
many fronts. Technological change and the advent of the Internet are among the most dramatic and
challenging areas of change for the sector. This paper looks at retail banking and its adoption of
online banking, in particular the factors driving and inhibiting adoption by banks. An international
Delphi study confirms the high level of importance of the Internet for retail banking. By 2011, it is
expected that bank adoption of the Internet will be near universal. The key factors that are driving
banks to adopt online banking are the adoption by other banks, competitive forces, consumer
demand and the availability of technology. Working against adoption are banks' perceptions that the
Internet does not offer enhanced ability to deal with customers as well as bank resistance to change,
their existing legacy systems and the resources required to adopt.
Singh & Malhotra (2004) in their study found that the tremendous advances in technology and the
aggressive infusion of information technology had brought in a paradigm shift in banking operations.
The purpose of this paper is to help fill significant gaps in knowledge about the Internet banking
landscape in India. The paper presents data, drawn from a survey of commercial banks websites, on
the number of commercial banks that offer Internet banking and on the products and services they
offer. It investigates the profile of commercial banks that offer Internet banking, using univariate
statistical analysis, relative to other commercial banks with respect to profitability, cost efficiency,
and other characteristics. By the end of first quarter, 2004, differences between Internet and non-
Internet banks had begun to emerge in funding, in sources of income and expenditures and in
measures of performance. It was also found that the profitability and offering of Internet banking
does not have any significant correlation.
Kuisma et.al (2006) conducted a research to identify the reasons for consumer resistance to Internet
banking. The special interest is to explore resistance among those bank customers who already have
valid contracts for Internet banking but prefer to pay their bills via ATM. The objective is to identifythose characteristics generating resistance to Internet banking and their connections to values of
individuals. In order to achieve the objective, 30 Finnish bank customers were interviewed in-depth
using the means-end approach and the laddering interviewing technique. The findings indicate both
functional and psychological barriers arising from service-, channel-, consumer- and
communication-related means-end chains inhibiting Internet banking adoption. The contribution of
the paper lies in achieving a more profound understanding of consumer resistance to Internet
banking, and further, in offering suggestions and practical advice for service providers' decision-
making.
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The perusal of review of literature revealed that the internet banking had been studied in relation to
various aspects like its adoption, growth, development and expectations of the customers. But no
study has been conducted in relation to the Net Banking service provided by HDFC Bank.
Laukkanen & Tommi (2007) in their research aimed to compare customer perceived value and
value creation between internet and mobile bill paying service. A qualitative in-depth interviewing
design was applied in order to ascertain the factors that create value perceptions in fund transfer
service via personal computer and mobile phone. The findings suggest that efficiency, convenience
and safety are salient in determining the differences in customer value perceptions between internet
and mobile banking. The findings of the qualitative study, being more depth than wide in nature,
deserve to be quantitatively measured in future studies in order to provide more generalized results.
The paper provides enhanced information for business managers about both positive and negative
customer value perceptions in internet and mobile banking. By understanding how and what kind of
value different service channels provide for customers service providers are better enabled to create
actions to enhance internet and mobile banking adoption. The contribution of the paper lies in
achieving a more profound understanding on consumer value perceptions to internet and mobile
banking. It expands the literature on electronic and mobile commerce and on electronic banking
especially.
Nandan et.al (2008) in his paper discusses the concept of Internet Banking, satisfaction of Internet
bank customers, non-customers and issues of major concern in Internet banking. The state of Internet
banking in India has been explored using various concepts like E-banking continuum, and gap
analysis related to the various services and the security features offered. In order to have a clear and
focussed insight about the perceptions of users (and non-users) about Internet banking a survey was
conducted. The findings of the survey provide valuable insights into concern for security, reasons for
lower penetration, and likeliness of adoption, which have been used to make useful
recommendations.
Mishra & Kiranmai (2009) in their study found that information technology is considered as the
key driver for the changes taking place around the world. According to Heikki, the transformation
from the traditional banking to e-banking has been a 'leap' change. The evolution of e-banking
started from the use of Automatic Teller Machines (ATMs) and telephone banking (tele-banking),
direct bill payment, electronic fund transfer and the revolutionary online banking. The future of
electronic banking would be more interactive i.e., TV banking. Finland is the first country in the
world to have taken a lead in e-banking. In India, ICICI Bank initiated e-banking services during
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1997 under the brand name 'Infinity'. It has been forecasted that among all categories, online banking
is the future of electronic financial transactions. The rise in e-commerce and internet in enhancing
online security transformation and sensitive information has been the core reason for the penetration
of online banking in everyday life. The shift towards the involvement of the customers in the
financial service with the help of technology, especially internet, has helped in reducing costs of
financial institutions as well as clients/customers who use the service at anytime and from virtually
anywhere with access to an internet connection.
Uppal (2009) in his study found that in the post-LPG (Liberalization, Privatization and
Globalization) era and Information Technology (IT) era, transformation in Indian banks is taking
place with different parameters and the contours of banking services are dynamically altering the
face of banking, as banks are stepping towards e-banking from traditional banking. On the basis of
five-point likert-type scale, this paper empirically analyzes the quality of e-banking services in the
changing environment. With different statistical tools such as weighted average method and ranking,
the paper concludes that most of the customers of e-banks are satisfied with the different e-channels
and their services, but the lack of awareness is a major obstacle in the spread of e-banking services.
The paper also suggests some measures to make e-banking services more effective in the future.
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RESEARCH METHODOLOGY
2.5 Research methodology
Research is a common parlance which refers to search for knowledge. It is a procedure of logical and
systematic application of the fundamentals of science to the general and overall questions of a study
and scientific technique, which provide precise tools, specific procedures, and technical rather
philosophical means for getting and ordering the data prior to their logical analysis and manipulating
different type of research designs is available depending upon the nature of research project,
availability of manpower and circumstances.
According to D.Slesinger and M. Stephenson research may be defined as the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge,
whether that knowledge aids in the construction of theory or in the practice of an art. Thus it is
original contribution to the existing stock of knowledge of making for its advancement. In short, the
search of knowledge through objective and systematic method of finding solution to a problem is
research.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In fact, the
research design is the conceptual structure within which research is conducted. This research was
descriptive in nature.
Descriptive research:
The research undertaken was a descriptive research as it was concerned with specific Predictions,
with narration of facts and characteristics concerning net banking service Provided by HDFC Bank.
SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
Universe of study: Universe of the study means all the persons who are the customers of HDFC
Bank in the world.
Theoretical: It covered all the individuals who are the customers of HDFC Bank in the world.
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Accessible: It covered all the individuals who are the customers of HDFC Bank in India who are
within our reach. In this study accessible population was customers of HDFC Bank in India.
Sample Size: A sample of minimum respondents was selected from various areas of Hyderabad.
(Alwal, Dilsukhnagar, Kukatpally, Mehdipatnam, Secunderabad ) Respondents are evenly selected.
The survey was carried out on 300 respondents.
Sample Unit: In this project sampling unit consisted of the various individuals who had their bank
accounts with HDFC Bank.
Sampling Technique: Stratified Random sampling technique is used for the collection of primary
data.
Sampling Frame: It consisted of various sources from where information about the respondent is
extracted. Mainly personal links and employees of HDFC Bank. Data will be collected in Hyderabad
for convenience.
2.6 DATA COLLECTION, ANALYSIS AND LIMITATIONS OF THE STUDY
DATA COLLECTION
There were two types of data sources used in this research. These were
Secondary data
Secondary data is the data collected from already been use or published information like journals,
diaries, books, etc .In this research project, secondary source used were various journals, and
website of various online journals.
Primary data
Primary data is the data collected for the first time from the source and never have been used earlier.
The data can be collected through interviews, observations and questionnaires. In this project, an
appropriate questionnaire was designed which was filled by the customers of HDFC Bank to know
their opinions regarding the Net Banking service provided by HDFC Bank.
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DATA ANALYSIS
Tools of Presentation:
It means what all tools are used to present the data in a meaningful way so that it becomes easily
understandable. In this research tables and graphs were used for presenting the data.
Tools of Analysis
In this research the tools of analysis used were percentages. SPSS software were used to conduct chi-
sqare test to analyze the data collected.
Hypothesis:
H01: There is no significant association between customers satisfaction and the convenience, Quick
service and Maintenance provided by HDFC net banking.
H11: There is a significant association between customers satisfaction and the convenience, Quick
service and Maintenance provided by HDFC net banking.
H02: There is no significant association between customers satisfaction and safety, cost, user
friendly and transactions feasibility offered by HDFC net banking.
H12: There is a significant association between customers satisfaction and safety, cost, user friendly
and transactions feasibility offered by HDFC net banking.
H03: There is no significant association between the customer satisfaction and account login,
webpage understanding and IPIN alteration offered by HDFC net banking.
H13: There is a significant association between the customer satisfaction and account login, webpage
understanding and IPIN alteration offered by HDFC net banking.
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LIMITATIONS OF THE STUDY
The following were the limitations of the study:
1. Non representative sample: In this research project a sample survey was conducted.
A sample of 300 respondents was selected. So such sample size cannot be said to be
the true representative of the universe.
2. Shortage of time: The time period of study was very limited. It is very difficult to
have in detail study on project work due to limited time period. The period of 4 to 6
weeks is not enough for the proper study of the project.
3. Inadequate data: The data provided was not up to the mark due to which we faced
problems in our research.
4. Lack of scientific method: The lack of scientific training in methodology of
research was great impediment in our research program, which led to the delay of
research.
5. Biasness in the responses: The answers provided by the respondents suffer from
biasness.
6. Cost Factor: It was not possible to conduct extensive research due to paucity of
funds.
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CHAPTER 3
COMPANY
PROFILE
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INTRODUCTION
FORMATION OF THE COMPANY
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.
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 in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and also has a large
corporate client base for its housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
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.
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CAPITAL STRUCTURE
As on 31st March, 2009 the authorized share capital of HDFC Bank is Rs. 550 Crore. The paid-up
capital as on the said date is Rs. 425,38,41,090/- ( 42,53,84,109 equity shares of Rs 10/- each). The
HDFC Group holds 19.38% of the Bank's equity and about 17.70 % of the equity is held by the ADS
Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.69 % of the
equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 5,48,774 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of
India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are
listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
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 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 interms of increased branch network, expanded geographic reach, enhanced customer base, skilled
manpower and the opportunity to cross-sell and leverage alternative delivery channels.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229
branches spread over 444 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. 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. The Bank also has a network of about over 2526 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.
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BOARD OF DIRECTORS
The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the
Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where the
securities issued by the Bank are listed. The Board has a strength of ten (10) Directors as on March
31, 2011. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar
are non-executive directors. The Bank has six independent directors and four non-independent
directors. The Board consists of eminent persons with considerable professional expertise and
experience in banking, finance, agriculture, small scale industries and other related fields.
None of the Directors on the Board is a member of more than ten (10) Committees and Chairman of
more than five (5) Committees across all the companies in which he/she is a Director. All the
Directors have made necessary disclosures regarding Committee positions occupied by them in other
companies.
Mrs. Renu Karnad, Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-
independent Directors on the Board.
Mr. C. M. Vasudev, Mr. Ashim Samanta, Dr. Pandit Palande, Mr. Partho Datta, Mr. Bobby Parikh
and Mr. A. N. Roy are independent directors on the Board.
Mrs. Renu Karnad represents HDFC Limited on the Board of the Bank.
The Bank has not entered into any materially significant transactions during the year, which could
have a potential conflict of interest between the Bank and its promoters, directors, management
and/or their relatives, etc. other than the transactions entered into in the normal course of business.
The members of the Senior Management team have made disclosures to the Board confirming that
there are no material, financial and/or commercial transactions between them and the Bank which
could have potential conflict of interest with the Bank at large.
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TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online connectivity, which enables the bank to
offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. The Bank's business is supported
by scalable and robust systems which ensure that our clients always get the finest services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its key goals and
has already made significant progress in web-enabling its core businesses. In each of its businesses,
the Bank has succeeded in leveraging its market position, expertise and technology to create a
competitive advantage and build market share.
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 "tAAA ( ind )" rating to the Bank's deposit programme, with the outlook on the rating as
"stable". This rating indicates "highest credit quality" where "protection factors are very high".
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 rating "AAAStable" for the Bank's Perpetual
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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 Governance and
Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India
Limited (CRISIL). The rating provides an independent assessment of an entity's current performance
and an expectation on its "balanced value creation and corporate governance practices" in future. The
bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability
with respect to wealth creation for all its stakeholders while adopting sound corporate governance
practices is the highest.
PRODUCT SCOPE
HDFC Bank offers a bunch of products and services to meet the every need of the people. The
company 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 the suitable one from a range of
products which will suit their life-stage and needs.
For organizations the company has a host of customized solutions that range from Funded services,
Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from
providing long term value to the employees help in enhancing goodwill 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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BUSINESS SEGMENTS
HDFC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale andretail customers. The bank has three key business segments:
(i) Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corporate to small & mid-sized corporate and agro-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services, including working capital
finance, trade services, transactional services, cash management, etc. The bank is also a leading
provider of structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its corporate customers.
Based on its superior product delivery / service levels and strong customer orientation, the Bank has
made significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime public sector
companies. It is recognized as a leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange members and banks.
(ii) Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to 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. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the facility to hold their
investments in electronic form.
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HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its
credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and
credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant
acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments.
(iii)Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information, advice
and product structures. These and fine pricing on various treasury products are provided through the
bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold
25% of its deposits in government securities. The Treasury business is responsible for managing the
returns and market risk on this investment portfolio.
The following tables summarizes the products and services and customer segments offered by HDFC
Bank:.
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Table 1.1: Personal banking
Loan ProductDeposit Product
Investment &
Insurance
Auto Loan
Loan Against Security
Loan Against Property
Personal loan
Credit card
2-wheeler loan
Commercial vehicles finance
Home loans
Retail business banking
Tractor loan
Working Capital Finance
Construction Equipment Finance
Health Care Finance
Education Loan
Gold Loan
Saving a/c
Current a/c
Fixed deposit
Demat a/c
Safe Deposit
Lockers
Mutual Fund
Bonds
Knowledge
Centre
Insurance
General and
Health
Insurance
Equity and
Derivatives
Mudra Gold
Bar
Cards Payment Services Access To Bank
Credit Card
Debit Card
Prepaid Card
--------------------------------
Forex Services
--------------------------------
Product & Services
Trade Services
Forex service Branch Locater
RBI Guidelines
NetSafe
Merchant
Prepaid Refill
Billpay
Visa Billpay
InstaPay
DirectPay
VisaMoney
Transfer
eMonies
Electronic Funds
Transfer
Online Paymentof Direct Tax
NetBanking
OneView
InstaAlertMobileBanking
ATM
Phone Banking
Email
Statements
Branch
Network
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Table 1.2: Wholesale banking
Corporate Small and Medium
Enterprises
Government
Sector
Financial
Institutions and
Trusts
Large Corporates
Funded Services
Non Funded Services
Value Added Services
Internet Banking
Supply Chain Partners Dealer Financing
Vendor Financing
Agricultural Lending
Funded Services
Non Funded
Services
Specialized
Services
Value added
services
Internet Banking
Tax Collection
E- Ticketing
Booking of
L/Cs
Collection of
Stamp Duty
Disbursement
of Pension Electronic
Collection of
fees
Collection of
property tax
Financial
Institutions
Mutual Funds
Stock Brokers
Insurance
Companies
Commodities
Business Trusts
Source : http://www.hdfcbank.com/wholesale/prd_glance.htm
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Table 1.3: NRI services
Accounts & Deposits Remittances
Rupee Saving a/c
Rupee Current a/c Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning
Indians
North America
UK Europe
South East Asia
Middle East
Africa
Others
Quick remit
India Link
Cheque Lock Box
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs
Investment & Insurances Loans
Mutual Funds
Private Banking
Portfolio Investment
Scheme
Home Loans
Loans Against Securities
Loans Against Deposits
Gold Credit Card
Payment Services
Access To Bank
Net Safe
Bill Pay
Insta Pay
Direct Pay
Visa Money
Online Donation
Net Banking
One View
Insta Alert
ATM
Phone Banking
Email Statements
Branch Network
Source: http://www.hdfcbank.com/nri/prd_glance.htm
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BUSINESS STRATEGY
HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against
international standards and best practices in terms of product offerings, technology, service levels,
risk management and audit & compliance. The objective is to build sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk
appetite. Bank is committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance. Continue to develop new
product and technology is the main business strategy of the bank. Maintain good relation with the
customers is the main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following:
Increase market share in Indias expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.
Leverage our technology platform and open scale able systems to deliver more
products to more customers and to control operating costs.
Maintain current high standards for asset quality through disciplined credit risk
management.
Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce banks cost of funds.
Focus on high earnings growth with low volatility.
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RECENT DEVELOPMENT
The Reserve Bank of India had approved the scheme of amalgamation of Centurion Bank of Punjab
Ltd. with HDFC Bank Ltd. with effect from May 23, 2008. All the branches of Centurion Bank of
Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs
approval, all requisite statutory and regulatory approvals for the merger have been obtained.
The combined entity would have a nationwide network of 1167 branches; a strong deposit base
of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size
of the combined entity would be over Rs.1, 63,000 crores.
On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of
the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every
29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt
of Approvals from the Reserve Bank of India, stock exchanges and other requisite statutory and
regulatory authorities. The shareholders also accorded their consent to issue equity shares and/or
warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or
other promoter group companies on preferential basis, subject to final regulatory approvals in this
regard. The Shareholders of the Bank have also approved an increase in the authorized capitalfrom Rs.450 crores to Rs.550 crores.
Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing
finance company, HDFC Bank is one of India's premier banks providing a wide range of financial
products and services to its over 11 million customers across hundreds of Indian cities using multiple
distribution channels including a pan-India network of branches, ATMs, phone banking, net banking
and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player
in retail banking, wholesale banking, and treasury operations, its three principal business segments.
The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-
class service with rapid response time. Over the last 13 years, the bank has successfully gained
market share in its target customer franchises while maintaining healthy profitability and asset
quality. As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327
cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion
(Rs.1590.2crore), up 39.3%, over the corresponding year ended March 31, 2007. As of March 31,
2008 total deposits were INR 1007.69 billion, (Rs.100,769 crore) up 47.5% over the corresponding
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year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion
(133177 crore). Leading Indian and international Publications have recognized the bank for its
performance and quality.
Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The
bank serves individual consumers, small and medium businesses and large corporations with a full
range of financial products and services for investing, lending and advice on financial planning. The
bank offers its customers an array of wealth management products such as mutual funds, life and
general insurance and has established a leadership 'position'. The bank is also a strong player in
foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank
offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion
Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and
regulatory approvals. This merger has further strengthened the geographical reach of the Bank in
major towns and cities across the country, especially in the State of Kerala, in addition to its
existing dominance in the northern part of the country. Centurion Bank of Punjab now
operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across
the country, supported by employee base of over 7,500 employees. In addition to being listed
on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg
Stock Exchange.
AWARDS AND ACHIEVEMENTS
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We
realized that only a single-minded focus on product quality and service excellence would help us get
there. Today, we are proud to say that we are well on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.
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Awards In 2009
Table 1.4: Awards in 2009
Euro money Awards 2009 'Best Bank in India'
Economic Times Brand
Equity & Nielsen Research annual survey
2009
Most Trusted Brand - Runner Up
Asia Money 2009 Awards 'Best Domestic Bank in India'
IBA Banking Technology Awards 2009 'Best IT Governance Award - Runner up'
Global Finance Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking Technology Excellence
Award 2008'Best IT Governance and Value Delivery'
Asian Banker Excellence in Retail
Financial Services
'Asian Banker Best Retail Bank in India Award
2009 '
Source:http://www.hdfcbank.com/aboutus/awards/default.htm
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Awards In 2008
Table 1.5: Awards in 2008
Finance Asia Country Awards for
Achievement 2008'Best Bank and Best Cash Management Bank'
CNN-IBN 'Indian of the Year (Business)'
Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector'
Business India 'Best Bank 2008'
Forbes Asia Fab 50 companies in Asia Pacific
Asian Banker Excellence in Retail
Financial ServicesBest Retail Bank 2008
Asia moneyBest local Cash Management Bank Award voted by
Corporates
Microsoft & Indian Express Group Security Strategist Award 2008
World Trade Center Award of honourFor outstanding contribution to international trade
services.
Business Today-Monitor Group survey One of India's "Most Innovative Companies"
Financial Express-Ernst & Young
AwardBest Bank Award in the Private Sector category
Global HR Excellence Awards - Asia
Pacific HRM Congress:
'Employer Brand of the Year 2007 -2008' Award - First
Runner up, & many more
Business Today 'Best Bank' Award
Source:http://www.hdfcbank.com/aboutus/awards/default.htm
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QUALITY POLICY OF HDFC BANK
Security: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products.
Trust: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will
aim to manage their investments very carefully and live up to this trust.
Innovation: Recognizing the different needs of our customers, the bank offers a range of
innovative products to meet these needs.
Integrity
Customer centric
People care one for all and all for one
Team work
Joy and simplicity.
NETBANKING SERVICE AT HDFC BANK
Net banking is HDFC Bank's Internet Banking service. It provides up-to-the-second account
information. Net banking lets the customer manage his/her account from the comfort of his/her
mouse - anytime, anywhere.Net Banking services provides access to account information, products
and other services (including transactions of non-financial and financial in nature) as advised by the
Bank from time to time to the customers through the website of the Bank. Net Banking Services also
include the services for Demat account, Credit Cards and loan on the website of the Bank.
The HDFC Bank web site (www.hdfcbank.com) also features two versions of a demo facility - one
"interactive" and the other "guided" - making it possible for even Internet illiterates to get
comfortable with its services.
On the downside, however, 'registration' for the service involves downloading of a form that needs to
be posted/delivered to any of its branches - not exactly "web savvy" as we would call it. Also, the
form itself requires Adobe Acrobat Reader to be installed and the file size will exceed 5.5 MB,
which translates roughly into an hour or more of on-line time. Its 3-question FAQ page also assumes
a high level of computer knowledge from users ... not consistent with the rest of the website.
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Net Banking service provides a host of features at the finger-tips:
View Account Balances & Statements
Transfer Funds between accounts
Create Fixed Deposits Online
Request a Demand Draft
Pay Bills
Order a Cheque Book
Request Stop Payment on a Cheque
SERVICES OFFERED UNDER NET BANKING SERVICE PROVIDED
BY HDFC BANK
HDFC Bank Savings and Current account holders can access their account through Net Banking.
Currently, Net Banking service is offered to the HDFC Bank customers free with all accounts.
However, all minimum balance/deposit amount requirements of the relevant accounts will need to
be honored. No separate fee is charged to access this service.
Currently, one can do any of the following:
Queries -
Check your Balance
See your Statement
Inquire about cheque status
Ask for a Statement
Ask for a Cheque Book
Inquire about your Fixed Deposit
Inquire about your TDS details
See your Demat Account
Update your profile
View HDFC bank Credit card bills
View your Mutual funds portfolio
Transactions -
Stop a Cheque
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Pay your Bills
Ask for a Demand Draft
Transfer funds between your accounts
Transfer funds to a third party
Request for a new Fixed Deposit
Shop Online
Pay HDFC Bank Credit Card Dues
Buy and sell Mutual Funds.
SECURITY AND SAFETY OF TRANSACTIONS ON NET BANKING
The customer can be assured of complete privacy when you use HDFC Bank's Net Banking facility.
The bank has built several checks to safeguard the Net Banking transactions. Before the user gain
access to his/her account, he/she will be asked to enter his/her unique customer ID and IPIN
(password) to verify the identity. To maximize the security and confidentiality of the transactions,
ones password is not accessible to anyone, not even bank employees.
To ensure the security of the transactions, the bank uses a technology called Secured Socket Layer
(SSL), which involves scrambling of the information between the customer and the Bank. If an
unauthorized user tries to access your account by keying in various combinations while trying to
guess your password, your account will automatically get locked. Moreover, when the user log-in
to Net Banking, the last date and time of log-in will be displayed so that the user can make sure that
nobody has accessed his/her account.
In addition to these online security features, have been placed under the supervision of a dedicated
team to monitor the access to the web server and to prevent unauthorized access. These features
work together to maximize the security of your banking transactions.
HDFC bank has implemented a new security solution for its customers - secure access as security
of the customer is banks top priority, the bank has initiated the secure access solution to protect the
customers from fraudsters and hackers.
Currently following transactions are covered under secure access
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Transfer from one HDFC bank account to other HDFC bank account
Transfer from HDFC bank account to any other bank's account
Visa money transfer
Third party demand draft through net banking.
Internet banking has been exploited by hackers and fraudsters to deceive the bank's customer and
commit frauds. While the bank has best-of-the-breed solutions, processes and people deployed to
extend secure banking to its customers, it is important for our customers to know that "security is
incomplete without u". Customers need to follow secure computing guidelines to avert any frauds
or security breaches to their accounts, as keys to the internet banking accounts are held by
respective account owners in the form of customer IDs and internet banking passwords (I PIN).
Here are some internet banking security tips provided by HDFC bank:
1. Keep your customer ID and IPIN confidential and do not disclose it to anybody.
2. Change your IPIN as soon as you receive it by logging into your net banking account.
Memorize your IPIN; do not write it down anywhere.
3. Refer "protect your computer accounts with strong passwords" section under computer
security tips.
4. Avoid accessing internet banking from shared computer networks such as cyber cafes.
5. Do not click on links in the emails or sites other than www.hdfcbank.com to access your net
banking webpage.
6. Always visit the HDFC bank's net banking site through HDFC bank's home page by typing
the bank's website address (www.hdfcbank.com) on to the browser's address bar. Users are
encouraged to add the bank's url to favorites or bookmark in the user computer browser.
7. Always verify the authenticity of the bank's net banking webpage by checking its url as
"https://netbanking.hdfcbank.com" and the pad lock symbol at the bottom corner of the
browser before putting in your customer ID and IPIN.
8. If your customer id and Ipin appear automatically on the login page of net banking
webpage, you should disable "auto complete" feature on your browser. To disable auto
complete feature:
a. Open internet explorer, click on tools=> internet options=> content.
b. Click on "auto complete", under "personal information"
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c. Uncheck "user names and passwords on forms", click on "clear passwords"
d. Click "ok"
9. Use virtual keyboard feature while logging into your internet banking account.
10. Do cross check your last login information available in net banking upon every login to
ascertain your last login and monitor any unauthorized logins.
11. Always type your confidential account information. Do not copy paste it.
12. Monitor your transactions regularly.
13. Use HDFC bank's "Insta Alerts" service.
14. Always logout when you exit net banking. Do not directly close the browser.
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CHAPTER 4
DATA ANALYSIS ANDINTERPRETATION
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DATA ANALYSIS AND INTERPRETATION
Statement 4.a Demographic Profile of the Respondents
Table 4.a Demographic Profile of the Respondents
38
Demographics
Number of
Respondents
Percentage Of
Respondents
Age:
Below 20 yrs
20 35 yrs
35 50 yrs
50 65 yrs
65 yrs and above
3
99
120
51
27
1 %
33 %
40 %
17 %
9 %
TOTAL 300 100 %Qualification:
Undergraduate
Graduate
Post Graduate
15
195
90
5 %
65 %
30 %
TOTAL 300 100 %
Occupation:
Businessman
Housewife
Self Employed
Service
Student
Professional
96
21
51
81
12
39
32 %
7 %
17 %
27 %
4 %
13 %
TOTAL 300 100 %
Annual Income:
Less than Rs 2 Lakhs
Rs. 2 6 Lakhs
Rs. 6 10 Lakhs
Rs. 10 15 Lakhs
Rs. 15 20 Lakhs
Rs. 20 Lakhs and above
36
81
117
51
15
0
12 %
27 %
39 %
17 %
5 %
0 %
TOTAL 300 100 %
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Analysis and interpretation:
From the data collected it was found majority of respondents that is 40% belonged to the age of 35 to
50 years, followed by the age group of 20 to 35 years. It was found that the majority of the
respondents were graduates. It was found that the majority of the respondents were from the
business class followed by the service class and self employed people. It was found that the majority
of the respondents fell between the income groups of Rs 6 to Rs 10 lakhs, followed by income group
between Rs 2 to Rs 6 lakhs.
Thus it can be concluded that the majority of the respondents were knowledgeable and were well
informed about the banking services.
Statement 1: Time period since the HDFC Banks services are being availed
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Table 4.1 Time period since the HDFC Banks services are being availed
Time Period Number of respondents Percentage of respondents
Less Than 2 years
2 5 years
5 10 years
More Than 10 years
27
54
93
126
9 %
18 %
31 %
42 %
Total 300 100 %
Graph 4.1 Time period since the HDFC Banks services are being availed
Analysis and interpretation:
From the data collected, it can be that the majority of the respondents that is 42% of the respondents
have been HDFC Banks customer for more than 10 years, followed by 5 to 10 years with 31% of
respondents.
It can be concluded that the majority of the respondents are loyal towards HDFC Bank for more than
10 years.
Statement 2: Products and services of HDFC Bank availed by the customers
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Table 4.2: Products and services of HDFC Bank availed by the customers
Products and services Number of respondents Percentage of respondents
Loans
Deposit Accounts
Credit Cards
Debit Cards
Forex Services
ATM
NRI Services
69
87
36
27
30
33
18
23 %
29 %
12 %
9 %
10 %
11 %
6 %
Total 300 100 %
Graph 4.2: Products and services of HDFC Bank availed by the customers
Analysis and interpretation
It was found that, majority of the respondents i,e., 29% availed deposit accounts, followed by loans,
credit cards, ATMs and forex services with 23%, 12%, 11% and 10% respectively. It can be
inferred that that majority of the respondents availed the deposit accounts among the various
products and services offered by the HDFC Bank.
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Statement 3: Perception about the products and services offered by HDFC Bank
Table 4.3: Perception about the products and services offered by HDFC Bank
Perception Number of respondents Percentage of respondents
Lucrative
Non lucrative
Cant say
240
15
45
80 %
5 %
15 %
Total 300 100 %
Graph 4.3: Perception about the products and services offered by HDFC Bank
Analysis and interpretation
From the data collected, it was found that the majority of the respondents that is 85% said that the
products and services offered by HDFC Bank were lucrative. While just 5% of the respondents said
that the products and services offered were non lucrative and the remaining 15% were not able form
any opinion.
It can be inferred that the majority of the felt that the products and services offered by HDFC Bank
were lucrative.
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Statement 4: Ways to access to HDFC Bank
Table 4.4: Ways to access to HDFC Bank
Ways Number of Respondents Percentage of Respondents
Net Banking
Phone Banking
One View
ATM
Branch Network
Email Statement
Insta Alert
69
36
9
36
99
45
3
23%
12 %
03 %
13 %
33 %
15 %
01%
Total 300 100 %
Graph 4.4: Ways to access to HDFC Bank
Analysis and interpretation:
It was found from the data collected that 33% of the respondents accessed the bank through Branch
network. About 23% of the respondents accessed the bank through net banking followed by email
statements with about 15%. Marginally 1% and 3% of the respondents used Insta Alert and one
view to access the bank. It was inferred that majority of the respondents accessed the bank through
branch network.
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Statement 5: Awareness regarding Net Banking Service provided by HDFC Bank
Table 4.5:Awareness regarding Net Banking Service provided by HDFC Bank
Awareness Number of respondents Percentage of respondents
Yes
No
288
12
96 %
4 %
Total 300 100 %
Graph 4.5:Awareness regarding Net Banking Service provided by HDFC Bank
Analysis and interpretation:
From the data collected it was found that majority of the respondents that is 96% were aware of the
net banking service provided by HDFC Bank while just 4% of the respondents were not aware of the
same service. It was concluded that majority of the respondents are aware of the net banking service
in HDFC bank.
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Statement 6: Accessibility of Net Banking Facility provided by HDFC Bank
Table 4.6: Accessibility of Net Banking Facility provided by HDFC Bank
Accessibility Number of respondents Percentage of respondents
Yes
No
243
57
81 %
19 %Total 300 100 %
Graph 4.6: Accessibility of Net Banking Facility provided by HDFC Bank
Analysis and interpretation:
From the data collected it was found that about 81% of the respondents had accessed the net banking
service provided by the HDFC Bank while 19% of the respondents said that they had not accessedthe same.
It can be inferred that the majority of the respondents had availed the net banking service.
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Statement 7:Net Banking services of HDFC Bank availed
Table 4.7: Net Banking services of HDFC Bank availed
ServicesNumber of
respondents
Percentage of
respondents
View accounts balances & statements
Transfer funds between accounts
Create Fixed Deposit online
Request a demand draft
Pay bills
Order a cheque book
Request stop payment on a cheque
90
66
18
9
60
33
24
30%
22%
6 %
3 %
20%
11 %
8 %
Total 300 100 %
Graph 4.7: Net Banking services of HDFC Bank availed
Analysis and interpretation:
It was found that the majority of the respondents i.e., 30% of the respondents used the net banking
service for viewing accounts and balances, followed by 22% and 20% of the respondents who
availed the same for transferring the funds between accounts and for paying the bills respectively.
Marginally 3% of the respondents used the same service to request a demand draft. It can be inferred
that the majority of the respondents used the net banking service provided by HDFC Bank to view
their accounts and balances.
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Statement 8: Frequency of using the Net Banking service in a month
Table 4.8: Frequency of using the Net Banking service in a month
Frequency Number of respondents Percentage of respondents
Less than once
1 to 3 times
3 to 8 times
8 to 15 times
More than 15 times
105
144
36
15
0
35 %
48 %
12%
5 %
0 %
Total 300 100 %
Graph 4.8: Frequency of using the Net Banking service in a month
Analysis and interpretation:
It was found that the majority of the respondents i.e., 48 % used the Net Banking service one to three
times in a month while 35 % said that they used the same service less than once in a month. None ofthe respondents said that they availed the same facility more than 15 times in a month.It can be
inferred that the majority of the respondents availed the Net Banking service one to three times in a
month.
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Statement 9: Frequency of visiting the HDFC Bank branch
Table 4.9: Frequency of visiting the HDFC Bank branch
Frequency Number of respondents Percentage of respondents
Everyday
Alternate days
Once in a week
Twice in a month
Thrice in a month
Twice in a week
Once in a week
63
78
54
27
15
42
21
21 %
26 %
18 %
9 %
5 %
14 %
7 %
Total 300 100 %
Graph 4.9: Frequency of visiting the HDFC Bank branch
Analysis and interpretation:It was found that the majority of the respondents i.e., 26% said that
they visited the bank branch every alternate day, followed by 21% of the respondents who visited the
bank everyday. Only 5% of the respondents visited the bank branch thrice in a month.
It can be inferred that the majority of the respondents said that they visited the bank branch every
alternate day.
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Statement 10: The main reason for which the bank branch is typically visited
Table 4.10 : The main reason for which the bank branch is typically visited
ReasonsNumber of
respondents
Percentage of
respondents
To make a deposit
To get a advice for investment purpose
To inquire about a balance
To withdraw a cheque
To order a cheque book
To transfer funds between accounts
93
39
21
71
45
33
31 %
13 %
7 %
23 %
15 %
11 %
Total 300 100 %
Graph 4.10 : The main reason for which the bank branch is typically visited
Interpretation:
It was found that the majority of the respondents i.e., 31% said that the main reason of visiting the
bank is to make a deposit, followed by 23% who said that they visited the bank branch typically to
withdraw a cheque. Of the total only 7% and 11% of the respondents visited the bank to inquire
about a balance and to transfer funds between accounts respectively.
It can be inferred that the majority of the respondents said that the main reason of visiting the bank is
to make a deposit.
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Statement 11: Agreement regarding Net Banking service being better than traditional banking
Table 4.11: Agreement regarding Net Banking service being better than traditional
banking
Agreement Number of respondents Percentage of respondents
Yes
No
192
108
64 %
36 %
Total 300 100 %
Graph 4.11 Agreement regarding Net Banking service being better than traditional banking.
Analysis and interpretation:
Of the data collected it was found that the majority of the respondents i.e., 64% respondents agreed
that net banking is better than the traditional banking while 36% of the respondents disagreed with
the statement.
It can be inferred that the majority of the respondents felt that the net banking service was better than
traditional banking.
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12. Rate the following factors in the order of your satisfaction
Mark 5 if you are highly satisfied
Mark 4 if you are satisfied
Mark 3 if you are neither satisfied nor dissatisfied
Mark 2 if you are Dissatisfied
Mark 1 if you are highly dissatisfied
Graph 4.12.1 Convenience
Interpretation: Most of the respondents are satisfied with the convenience in using Net banking
services offered by HDFC bank. It is proved from the above fig; showing that 224 respondents are
satisfied with the above attribute whereas, 36 respondents are dissatisfied. Remaining 40 respondents
are neither satisfied nor dissatisfied with the convenience.
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Graph 4.12.2 Low cost
0
20
40
60
80
100
120
140
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
43
81
122
37
17
Low cost
Interpretation: Most of the respondents are neither satisfied nor dissatisfied with the Low cost in
using Net banking services offered by HDFC bank. It is proved from the above fig; showing that 122
respondents are neither satisfied nor dissatisfied with the above attribute whereas, 43 respondents areHighly satisfied ,81 respondents are satisfied. And remaining 40 respondents are neither satisfied nor
dissatisfied with the Low cost.
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Graph 4.12.3 Quick service
Interpretation: Most of the respondents are satisfied with the service lead time in using Net banking
services offered by HDFC bank. It is proved from the above fig; showing that 190respondents are
satisfied with the above attribute whereas, 54respondents are dissatisfied. Remaining 56 respondents
are neither satisfied nor dissatisfied with the Service Lead time.
53
0
20
40
60
80
100
120
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
117
73
56
32
22
Quick service
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Graph 4.12.4 Maintenance
0
20
40
60
80
100
120
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
69
117
75
33
6
Maintenance
Interpretation: Most of the respondents are satisfied with the Maintenance in using Net banking
services offered by HDFC bank. It is proved from the above fig; showing that 186 respondents are
satisfied with the above attribute whereas, 39 respondents are dissatisfied. Remaining 75 respondents
are neither satisfied nor dissatisfied with the Maintenance.
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Graph 4.12.5 Safety
0
10
20
30
40
50
60
70
80
90
100
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
43
79
94
57
27
Safety
Interpretation: Most of the respondents are neither satisfied nor dissatisfied with the Safety in using
Net banking services offered by HDFC bank. It is proved from the above fig; showing that 94
respondents are neither satisfied nor dissatisfied with the above attribute whereas, 43 respondents are
Highly satisfied ,79 respondents are satisfied. And remaining 84 respondents are neither satisfied nor
dissatisfied with the Safety.
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Graph 4.12.6 User friendly
0
10
20
30
40
50
60
70
80
90
100
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
54
96
78
41
31
User friendly
Interpretation: Most of the respondents are satisfied with the User friendly in using Net banking
services offered by HDFC bank. It is proved from the above fig; showing that 150 respondents are
satisfied with the above attribute whereas, 72 respondents are dissatisfied. Remaining 78 respondents
are neither satisfied nor dissatisfied with the User friendly.
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Graph 4.12.7 Logging in to your account
0
10
20
30
40
50
60
70
80
90
100
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
37
64
94
68
37
Logging in to your account
Interpretation: : Most of the respondents are neither satisfied nor dissatisfied with the Logging in to
your account in using Net banking services offered by HDFC bank. It is proved from the above fig;
showing that 94 respondents are neither satisfied nor dissatisfied with the above attribute whereas,
37respondents are Highly satisfied ,64 respondents are satisfied. And remaining 106 respondents are
neither satisfied nor dissatisfied with the Logging in to your account.
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Graph 4.12.8 Making transactions
0
10
20
30
40
50
60
70
80
90
Highly satisfied Satisfied Neutral Dissatisfied Highlydissatisfied
41
87
76
59
37
Making transactions
Interpretation: Most of the respondents are satisfied with the Making transactions in using Net
banking services offered by HDFC bank. It is proved from the above fig; showing that 128
respondents are satisfied with the above attribute whereas, 96 respondents are dissatisfied.
Remaining 76 respondents are neither satisfied nor dissatisfied with the Making transactions.
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Graph 4.12.9 Unable to understand webpages
0
10
20
30
40
50
60
70
80
90
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
41
74
55
83
47
Unable to understand webpages
Interpretation: Most of the respondents are dissatisfied with the understanding webpages in using
Net banking services offered by HDFC bank. It is proved from the above fig; showing that 130
respondents are dissatisfied with the above attribute whereas, 125 respondents are satisfied.
Remaining 55 respondents are neither satisfied nor dissatisfied with the understanding webpages.
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Graph 4.12.10 Changing the IPIN and Password
0
10
20
30
40
50
60
70
80
90
Highly satisfied Satisfied Neutral Dissatisfied Highlydissatisfied
31
54
64
82
69
changing the IPIN and Password
Interpretation: Most of the respondents are dissatisfied with the Changing the IPIN and password
in using Net banking services offered by HDFC bank. It is proved from the above fig; showing that
151 respondents are dissatisfied with the above attribute whereas, 85 respondents are satisfied.Remaining 63 respondents are neither satisfied nor dissatisfied with the Changing the IPIN and
password.
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