customer retention strategies at hdfc bank

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PROJECT REPORT ON CUSTOMER RETENTION AT BATCH 2012-15 SUBMITTED TO: SUBMITTED BY: MRS. RUPINDER KAUR KULWINDER SINGH (ASSISTANT PROFESSOR MGMT.! (STUDENT BBA SEMESTER "!

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Project Report on Customer Retention Strategies at HDFC Bank, Chandigarh

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PROJECT REPORT ON

PROJECT REPORTONCUSTOMER RETENTION

AT

BATCH 2012-15

SUBMITTED TO: SUBMITTED BY:MRS. RUPINDER KAUR KULWINDER SINGH(ASSISTANT PROFESSOR, MGMT.) (STUDENT, BBA SEMESTER V)

HDFC COMPANY PROFILEHDFC Bank Limitedis an Indian banking andfinancial servicescompany headquartered inMumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994.It is the largest private sector bankin India bymarket capitalizationas of 24 February 2014. As on Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared toCredit Suisse Groupwith US$47.63 billion.The bank was promoted by theHousing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As of 31 March 2013, the bank had assets of INR 4.08trillion.For the fiscal year 2012-13, the bank has reported net profit of INR 69billion, up 31% from the previous fiscal year.Its customer base stood at 28.7millioncustomers on 31 March 2013.

The banking operations offer a central platform for customer relationships across the group's various businesses, which include:Retail Liabilities: Payment / Collection solutions, Current Accounts, Savings Accounts & Fixed return investment products.Retails Assets: Loans of all kinds working capital loan for your business, personal loans, home loans etc.Corporate Banking: Mid & large size corporate. Treasury: Money Market, Debt, Forex and Bullion.Wealth Management: Investment management for HNIs.

HDFC NETWORK STRENGTHNo. of branches & locations: 300+ branches across 155+ locationsNo. of HDFC ATMs: 640+No. of VISA ATMs: 30000+ in India & 1 Million worldwide No. of outlets accepting HDFC Debit card: 400000+ India & 30 Million worldwideNo. of local cheque collection location: 244+No. of outstation cheque collection locations: 3900+ (Tie-up with 10Corr banks)No. of payable at-par cheque locations: 300+ ( 150+ HDFC, 200+ Corr. bank) No. of DD payment locations: 1115+ (205 HDFC, 911 Corr. bank)

HDFC - MANAGEMENTMr. C.M. VasudevChairmanMr. Aditya PuriExecutive Vice Chairman & Managing DirectorMr. Anand MahindraMemberMr. Asim GhoshMemberDr. Sudipto MundleMemberMr. Prakash ApteMemberMr. Amit DesaiMemberMr. C. JayaramJoint Managing DirectorMr. Dipak GuptaJoint Managing DirectorMr. Bina ChandaranaSecretary & Senior Vice President

SAVING ACCOUNTS VARIANTS AT HDFC BANK LIMITEDACE SAVINGS ACCOUNT

Gateway to the world of financial benefits and privileged banking transactions. Open a HDFC Ace Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a HDFC Savings Account, you may want to give some thought to how many free banking services would you like to avail. The HDFC Ace Account is the top-end variant of the HDFC Savings Account, where you also enjoy a wide range of free services and greater financial flexibility

Some of the extra benefits of the HDFC Ace Savings Account include:Free Access to all Domestic and International VISA ATMsFree Gold Debit CardFree Add-on and Supplementary Gold Debit CardThree NMC Waived Edge Savings Accounts for family members*Free Demand Drafts (Unlimited at HDFC locations)Free RTGSExtended Debit Card withdrawal limit of Rs. 1.75 lac per day through ATM / POS15% Discount on Locker Rent *2% Discount on Gold Eternity Coins & Bars*Waiver on first year Demat Annual maintenance chargeFree outstation cheque collection

SAVING ACCOUNTS VARIANTS AT HDFC BANK LIMITEDPRO SAVINGS ACCOUNT

Account packed with powerful features. Open a HDFC Pro Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a HDFC Savings Account, you may want to give some thought to how many free banking services would you like to avail. The HDFC Pro Savings Account is the most recommended of our Savings Account suite. It offers you the 'best in class' features at a very manageable quarterly average balance. As you glance through the numerous features and benefits of this account, you will quickly see why this is truly the new age savings account.

Some of the key advantages of the HDFC Pro Savings Account include:Free Access to all Domestic VISA ATMsFree Gold Debit Card for 1st YearFree Classic Debit CardOne NMC Waived Edge Savings Account for your family member*Free cash pick-up / delivery (One Call per day)Free instrument pick-up / delivery (One Call per day)Free NEFTFree Cash withdrawal from any HDFC Branch across India.50 % Discount on first year Demat AMC

SAVING ACCOUNTS VARIANTS AT HDFC BANK LIMITEDEDGE SAVINGS ACCOUNT

Financial package customized to suit your individual banking needs. Open a HDFC Edge Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a HDFC Savings Account, you may want to give some thought to how many free banking services would you like to avail. The HDFC Edge Account is the basic variant of the HDFC Savings Account. It has been designed to suit the requirements of the new age professional, who wants a bank account to provide that little bit extra to be able to live life worry-free.

Some of the key benefits of the HDFC Edge Savings Account include:Free Access to all Domestic VISA ATMsFree Classic Debit Card for 1st YearFree At-par Cheque (upto 25 leaves per qtr.)Free Phone Banking, Net Banking, Mobile Banking and SMS BankingFree NEFT

SAVING ACCOUNTS VARIANTS AT HDFC BANK LIMITEDNOVA SAVINGS ACCOUNT

Financial package customized to suit your individual banking needsHDFC Bank's Nova Savings Account is a complete financial package customized to suit your individual banking needs. Our constant endeavor is to enable regular financial transactions through our online platform so that most of your payments can be made directly through your account or card.

Key featuresUnlimited Accessfinancial payments facilitated through the savings accountQuick and easy funds transfer

SAVING ACCOUNTS VARIANTS AT HDFC BANK LIMITEDCORPORATE SALARY ACCOUNT

Choose the Account best suited to your needs. You need a guide who helps you manage your wealth and make the most of your hard earned money. We offer you the HDFC Salary Account, armed with exclusive privileges designed exclusively for you. We have two types of accounts to offer - HDFC Edge Salary Account and HDFC Ace Salary Account. Each product is feature packed ranging from Free Access to over 17000 ATMs, Free Demand Drafts, Free at -Par Cheque Facility to Free Trading Account & Free Demat Account. You can choose the one that suits you the most and we would be delighted to meet your requirements.

Key FeaturesZero Balance accountPersonalized At Par Cheque bookReimbursement AccountInvestment AccountOffice BankingFree Demand Drafts

CURRENT ACCOUNTS VARIANTS AT HDFC BANK LIMITEDNEO CURRENT ACCOUNT

EDGE CURRENT ACCOUNT

PRO CURRENT ACCOUNT

ELITE CURRENT ACCOUNT

ACE CURRENT ACCOUNT

SERVICES OFFERED BY HDFC BANK LIMITEDBranch Banking

Net Banking

Phone Banking

Home Banking

HDFC PAYMENT GATEAWAYHDFC Payment Gateway enables you to shop online at over 5000 websites, make utility bill payments across more than 60 companies and 42 cities, pay insurance premium, pay for magazine subscriptions, make donations to charitable and religious institutions, transfer money to HDFC Securities for margin money, settlement transfer or IPO funding. HDFC Payment Gateway is an internet based facility using which you can pay online merchants by debiting your selected Bank account.

Key FeaturesOnline shoppingPay for utility billsMake donationsTransfer money for online trading

CASA REVIVAL PROCESS: DATA PRESENTATION & INTERPRETATIONWHAT IS CASA REVIVAL

CASA Revival is a program for FY12-13 for improving the quality of book and ensuring that customers with a disconnect on Transaction, Balance Maintenance and Service Dissonance if any are approached with new energy and specific focus for Revival in transacting Primary Bank Relationship.

WHAT ARE HDFC OFFERING IN CASA REVIVAL

TOD and Zero AccountsAccounts with Below Product AQB BalancesCorporate Salary Revival

WHY TO DO CASA REVIVAL

For improving the quality of Books.Ensuring that customer uses our account as Primary account.Ensure Customer stickiness

HOOKS MANDATORY AT LEAST ONE OF THEMSYSTEMATIC INVESTMENT PLAN (SIP) is a powerful tool that will help the customer to preserve capital and reduce susceptibility to market fluctuationsAUTOPAY facility for automatic payments of bills through bank account hence customer need not remember his bill due datesBEAT CHEQUE PICK UP- All cheques which are to be deposited in customers account will be picked up from his office everyday absolutely free of charge.ACTIVE MONEY feature gives the customer the unique opportunity to maximize his returns while offering liquidity at the same time.E-TAX services are a convenient mode to the customer for paying his direct tax online taxes instead of waiting in long ques.

CUSTOMER RETENTION SURVEY RESULT

COMPETITION MAPPINGParticularsKotak Mahindra BankICICI BankHDFC BankAXIS BankMinimum Average quarterly balance required10k10k(Metro-Urban)/ 5k (Semi-Urban)/ 2k(Rural)10k(Metro-Urban)/ 5k (Semi-Urban/Rural)5KRate of Interest5.5% upto 1 lac, above 1 lac 6%4%4%4%Fund TransferFreeFreeFreeFreeLocal Clearing ChequeFreeFreeFreeFreeNon Maintenance Charge (Quarterly)AQB more than 50% but less than required AQB: 750; AQB less than 50%: 1000750750750 (Rural: Rs 500)Local Clearing Cheque FreeFreeFreeFreeOutstation Cheque Collection -Branch Location (Per Instrument)Cheques drawn on Non-Speed Clearing Branches Instrument value upto. 500 - Free;>500 to 5,000 20; >5,000 to10,000 35; >10,000 to 1,00,000 -85; >1,00,000 Free Upto Rs. 5,000 Rs. 25 per instrument.Rs. 5,001 to Rs. 10,000 Rs. 50 per instrument.Rs. 10,001 to Rs. 1 lakh Rs 100 per instrument. Above Rs. 1 lakh - Rs. 200 per instrument Upto Rs 5k=Rs 25; 5k to 10k =Rs 50; Rs. 10001 to 1 lac = Rs 100/-, Rs. 1,00,001 & above = Rs. 150/-Upto Rs 5k=Rs 25; Rs. 5001 to 10k = Rs 50; Rs 10,001 to 1L = Rs. 100 Rs. 1,00,001 & abv = Rs 200CurrencyDenominationsFreeChargeableChargeableChargeable

OTHER SERVICES COMPARISON WITH BANKS

SUMMARY & CONCLUSIONThis project is on Customer Retention and its analysis which works on the framework of CASA i.e. Current Accounts and Savings Account, competition in the market and service offerings. The main theme of the project is implementation of CASA Revival Campaign i.e. to get back those set of customers who have stopped banking with the HDFC. It covers various features of the CASA products. This Campaign is basically the Banks initiative in order to retain and revive its customers back and work for the improvement in the volume of Current and Savings Accounts holders. The project begins with a brief description of concepts like CASA, Customer retention and services offered to the public. On the basis of results various methods or recommendations to prevent Customer defection rate or conversion rate is also generated for the purpose of retaining the customer in the Bank. On the basis of processed data Graphical Representation of it is made and also some ratios like Conversion Ratio and Retention Ratio are calculated. On the basis of these ratios the final result is generated for the purpose of generating various ways to retain the customers for the organization. Project also includes the comparative analysis of products and other vital features attached to their products, which studies WHAT MAKES A CUSTOMER TO OPT HDFC BANK IN THIS COMPETITIVE MARKET. Organizations performance has also been studied which helps in establishing good investor relations.

PROPOSALS & RECOMMENDATIONSIn order to keep the accounts in transaction mode, HDFC bank can offer Recurring Deposits (RD), which so far the HDFC Bank has not been providing to its customers.HDFC Bank can also create its niche in the market by Offering Differential Interest rates on Savings accounts. For example higher interest rates can be offered on the savings account for Senior citizens and women.In order to attract youth towards banking, HDFC Bank can serve Lower Average Quarterly Balance(AQB) accounts for the Students.As we know, India is a country where people have fascination for the gold and per say Chandigarh being high per capita market HDFC Bank should also start Offering Gold loans to publicSince HDFC offers Commercial loans, Car loans, and Personal Loans to public, so eventually it can also look upon General Insurance for the same. Till Date it offers only Life Insurance.Besides CASA, for enhancing the Servicing Level, HDFC Bank can offer Thank You cards to its customers who visit the branch.In order to maintain competitive edge in the market, HDFC bank can enter into More Sponsorships with other business organizations, or it may sponsor celebrities too. This also results in bringing sense of belongingness. For example, sponsoring Indian cricket team on its tour etc.In order to ensure customer satisfaction and customer stickiness, HDFC bank can offer Banking Points to its Debit and Credit card users, and offering certain gifts for redemption of those points.

THANK YOU!