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“A study on CRM activities followed by HDFC Bank in Bhilai region.”


First of all I would like to thank Mr.XYZ(Faculty Member) for giving me the opportunity to do the project on CRM activities follow by HDFC Bank in Bhilai region.His extended views on the Indian Banks help me with assistance, support and council without, which this project would not have been materialized. I would also like to express my special thanks to all the Staffs of the HDFC Bank for their excellent support and co- ordination without which this study could not be fulfilled. Thank you


This Final report refers to a study “On CRM activities followed by HDFC Bank in Bhilai region.” This Final report is a result of the magazines, journals, newspaper, brochures and data collected from the organization. The project carried out by me and presented through this Final report under the title “A study on CRM activities followed by HDFC Bank in Bhilai region.






Abstract/ Summary




Review of Literature

Research Design/ Methodology







Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development • The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress.

• The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering Nationalization Of Banks In India The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalized 14 banks then. These banks were mostly owned by businessmen and even managed by them.

• Central Bank of India • Bank of Maharashtra • Dena Bank • Punjab National Bank • Syndicate Bank • Canara Bank etc.

Before the steps of nationalization of Indian banks, only State Bank of India (SBI) was nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services.

The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India were under Government ownership. After the nationalization of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge

jump by 11,000%.

• 1955 : Nationalization of State Bank of India. • 1959 : Nationalization of SBI subsidiaries. • 1969 : Nationalization of 14 major banks. • 1980 : Nationalization of seven banks with deposits over 200 crores.

Scheduled Commercial Banks In India

The commercial banking structure in India consists of: • Scheduled Commercial Banks in India • Unscheduled Banks in India Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in

India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates , nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted und er the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as

defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector): • State Bank of India • State Bank of Bikaner and Jaipur • State Bank of Hyderabad • State Bank of Indore • Andhra Bank • Allahabad Bank • Bank of Baroda • Bank of India • Bank of Maharashtra • Canara Bank • Central Bank of India • Corporation Bank • Dena Bank • Punjab National Bank • Punjab and Sind Bank

The following are the Scheduled Banks in India (Private Sector): • Vysya Bank Ltd • Axis Bank Ltd • Indusind Bank Ltd • ICICI Banking Corporation Bank Ltd • Global Trust Bank Ltd • HDFC Bank Ltd • Bank of Punjab Ltd • IDBI Bank Ltd The following are the Scheduled Foreign Banks in India: • American Express Bank Ltd. • ANZ Gridlays Bank Plc. • Bank of America NT & SA • Bank of Tokyo Ltd. • Banquc Nationale de Paris • Citi Bank N.C. • Deutsche Bank A.G. • Hongkong and Shanghai Banking Corporation


Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India. In its objective of providing customer satisfaction, HDFC Bank is committed to provide retail and corporate service to customers across locations.

HDFC Bank’s philosophy is based on customer focus, operational excellence, product leadership, and human values. 9.4 percent of this bank's shares are held by HDFC group, 17.6 percent in ADS (American depository shares), 28 percent by FIIs (foreign institutional investors) and remaining 35 percent by 570,000

shareholders. ADS held by HDFC Bank are listed in New York Stock Exchange. Products and services Products of HDFC Bank are classified into i)Personal banking, ii)Wholesale banking, iii)NRI banking. Personal banking – Personal depository services of HDFC Bank comprise savings accounts, current accounts, term deposit accounts and demat accounts. Loans offered by HDFC include home loans, car loans, tractor loans, educational loans, guaranteed loans, and personal loans. HDFC Bank offers insurance services, credit card and locker facilities to its personal customers. Wholesale banking – Wholesale banking facilities offered by this bank include bill discounting, letter of credit, bank guarantees, working capital finance and export credit. Other wholesale banking services include project financing, asset management, and stock market services. Financing of various projects like

construction equipment financing, commercial vehicle financing, medical equipment financing are provided by HDFC Bank. NRI Banking – Foreign exchange transfers, non-resident ordinary (NRO) and non-resident external (NRE) fixed deposits, and mutual funds are certain non-resident Indian (NRI) banking services provided by HDFC Bank.

Amalgamations In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore. Tech-Savvy HDFC Bank has always prided itself on a highly automate environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology,

along with market position and expertise, to create a competitive advantage and build market share.

Capital Structure At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.

Customer Relationship Management: The Concept Customer Relationship Management is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and the organizations. Successful customer relationship management focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of the business by integrating them with the organization's strategy, people, technology and business processes. At the heart of a perfect CRM strategy is the creation of mutual value for all the parties involved in the business process. It is about creating a sustainable competitive advantage by being the best at understanding, communicating, and delivering, and developing existing customer relationships in addition to creating and keeping new customers. So the concept of product life cycle is giving way to the concept of customer life cycle focusing on the development of products and services that anticipate the future need of the existing customers and creating additional services that extend existing customer relationships beyond transactions.

Need of CRM in the Banking Industry

A Relationship-based Marketing approach has the following benefits:  Over time, retail bank customers tend to increase their holding of the other products from across the range of financial products / services available.  Long-term customers are more likely to become a referral source.  The longer a relationship continues, the better a bank can understand the customer and his/her needs & preferences, and so greater the opportunity to tailor products and services and crosssell the product / service range.  Customers in long-term relationships are more comfortable with the service, the organization, methods and procedures. This helps reduce operating cost and costs arising out of customer error.

The wealthier the customers, the more demanding they are - and the clients expect more and more from their banks. Competition for "Supremely elite" is increasing Customer Experiences The first step towards successfully winning, retaining and growing the profitability of private banking customers is to understand what their wants and needs are, so that the organization can be built around serving those needs. Only when an organization has done this and incorporated this into its strategy can it start to design its value proposition and a customer experience that will enable it to achieve a differentiated competitive position in the private banking market, and more importantly, do so in an economically viable way The Basic Customer Experience

All customers, regardless of wealth levels, have similar emotional needs, which drive their need for advice and their purchase of products. Different wealth levels impose different priorities on meeting these needs and open up new avenues for doing . So take a simple example, HNW customers can afford on it to fund their retirement, so their priorities may be associated with growing wealth, rather than preserving it, allowing them to choose a product option with a higher risk/reward ratio. If this is true, it means all HNW customers start with a basic, common set of what they want and need from a bank, which might include:  Personal, long-term relationship

 Advice combining industry expertise and knowledge of personal circumstances  High quality, consistent quality  Security, privacy, confidentiality At this basic level, grouping together these core wants and needs produces a set of generic characteristics that an HNW individual seeks from an organization before he or she will even consider placing any of his or her wealth with it. Underlying these generic characteristics is a set of capabilities covering organization, process and technology, which the private bank must process to operate in the high net worth market.

Impact of CRM in Banking Industry

In the Post liberalization the banking industry was adopting push strategy in selling their products and the importance is not given in serving the customers. But in progressive liberalization, the Narashima committee has implemented sea-changes in the banking reform in 1991.

With sustained pressure on their interest spread, banks have been increasingly foraying into a host of diversified activities so as to safeguard their bottom. Banking Industry revolves around three basic features being:

1. Intangibility: Unlike a product which can be seen and benefits derived accordingly, the banking industry thrives practically on the quality of the services rendered. The experience of the customer determines the growth of the business. 2. Variability: The present day customer is impatient and is highly demanding and dos not compromise on the quality of the service rendered, as he expects that high cost equals high quality and vice versa. 3. Satisfiers: Unlike the manufacturing industry that wholly depends on the tangibility and extrinsic factors, the service industry is totally dependent on the intrinsic and extrinsic factors, which have a close earring on the core benefits. It is obvious from these features that the customer is the fulcrum for the banking industry and any initiative adopted for its growth is to be aimed at, for and through the customer. And the banks to be competitive it build up a strong CRM by convergence model in the financial industry and financial liberalization.

CRM about a business strategy , which drives changes in the banking and work processes, enabled by information technology.

Banking institution must initially develop a strategy to understand and anticipate the need of the current and potential customer base.

Benefits of Using CRM in Banking Industry  Provide better customer balance  Increase customer revival  Discover new customers  Helps sales staff close deals faster  Making banking operation more efficient  Simplify marketing and sales process

Research Objectives  To study brand image of the bank.  To know CRM activities of HDFC BANK  To find out the customer preferences  The financial sector is one of the booming and increasing sectors in India.  To know the different strategies adopted by HDFC Bank to attract new customers and retain existing customers in bhilai region

 To know the strategy adopted By HDFC Bank to maintain its position in present scenario  To understand customer attitude regarding bans services.  To know the different types of services offered by HDFC Bank to the customer.

Research Design and Methodology-

EXPLORATORY STUDY To determine the approximate area where the problem lies. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research often relies on secondary research such as reviewing







approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.


My references are from websites that is:• •

My references are from Publications:• Consumer Behavior ICFAI Text Book. • General Bank Management.


HDFC Bank mission is to be area 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 appetite. They are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.HDFC Bank has been recognized as 'Best

Bank in India' in the magazine rankings as well as surveys year on year.HDFC Bank is the most preferred employer in Banking industry in India.

PURPOSE OF THE STUDY The ultimate purpose of giving me this topic was to know about the customer relationship management different activities adopted by HDFC Bank, and to know about operational process. How these CRM can attract them and how the company can generate maximum profit by convincing them and to better understand customer requirement and to understand operational methodology.

OUTCOME OF THE STUDY The process of bank CRM activities ,related transaction, bank related various terms, work environment of HDFC Bank. Different products and services provided by the bank. Customers’ perception about the different products. The brand image of the bank in market and customer’s mind. • What are the problems faced by customer on daily basis. • How to communicate with the customers. Different techniques of dealing with the customers. • How to convince and convert a customer into a real customer and how to response to the customer problem in a better manner.


A study on CRM activities followed by HDFC Bank in Bhilai region.�

ABSTRACT/ SUMMARY My MT title is “A study on Value Added Services afforded by HDFC Bank and its impact on Customer Satisfaction in Bhilai�. I am making this thesis on HDFC Bank, which I is, one of the leading banks of India. Value-added services are a revolutionary service under the banking sector. The value added services given by the HDFC Bank is providing it a unique image as a leading bank in India. For doing this study of the given topic I collected data through stratified sampling method which is comes under non-probability sampling. I conducted this research in Bhilai only as per my topic. The data collection source of my study is primary source and secondary source. The primary source includes the personal interaction to the employees, customers of banks and the other people. I had prepared questionnaire for collecting the data from the primary source. The secondary source includes the wed-site, magazines, etc.

I had to collected data related to my management thesis which title is based on customer satisfaction on value added services of HDFC Bank. For collecting the data regarding my thesis first I collected the information about the different types of value added services which is provided by the HDFC bank and then I personally interacted to the different customers of HDFC Bank and find out their satisfaction level regarding to the value added services provided by the HDFC Bank. I also collected the information is related to, how they make satisfaction to their customers at the time when they use banking services by giving them value added services and make them comfortable so they feel satisfied. HDFC Bank 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. They always focus to retain old customers and to make new customers with full satisfaction by providing best service in comparison from their competitor and their value added services make it possible for them.


: : : : : : : : : : : : : :

The Housing Development Finance Corporation. Value Added Services. Real-Time Gross Settlement. Credit Card. Demand Draft. Alternative Trading System. Central Counter Party. Continuous Linked Settlement. Committee on Payment and Settlement Systems. Delivery versus Payment. Electronic Communication Network. Free of Payment. International Organization for Standardization. International Securities Services Association.


: :

Over-the-counter Society for Worldwide Interbrain Financial Telecommunication

LIMITATIONS The limitation which I had faced during conducted this research are mentioned below:  The survey is conducted only for Bhilai so the outcome of this project is not applicable for whole the population of India.  The selection of customers to cover the various strata of society was tedious and time consuming.  Getting accurate responses from customers is not possible due to their inherent problem.  It is difficult to find the customers to whom we conduct our research because many of them not interested.

ďƒ˜ The sample size which I used is not applicable to everybody because the sample size is not representing the whole population. ďƒ˜ Sometimes the respondent gives the bias answers due to hesitation.

REVIEW OF LITERATURE 1) Value-added benefits consulting can save the day Author(s): Dan Cassidy Abstract: This article propose that understanding and evaluating the return on investment of outsourcing consulting services in light of the new role of technology is vital for companies and their budget. By adding the value in the services the satisfaction of the customers can be improved. 2) The added value of web innovation for customer satisfaction: Experiences with a barbeque catering service Author(s): Marcel van Birgelen, Paul Ghijaap, Janjaap Semeijn Abstract: Recent studies have explored the effects of value added services on satisfaction and loyalty of online customer by extending and supplementing traditional service quality frameworks. The setting of the study is a traditional-style barbeque delivery service with a recently

installed advanced web-initiated order entry facility now used by a majority of the customers. 3) Title: Customer Satisfaction with Supplement Service Encounters. Author(s): Nelson Massad Robert Heckman Abstract: Customer relationship management is an integral component of business strategy for on-line service providers. This paper investigates the aspect of on-line transactions in electronic retailing that are most likely to satisfy or dissatisfy customers, thereby increasing or decreasing the likelihood of building and maintaining relationships with them by giving them supplement service. 4) Title: Service quality perspectives and satisfaction in private banking Author(s): Walfried M. Lassar, Chris Manolis, Robert D. Winsor Abstract: The paper explores the theoretical and practical insights of the findings, including potential strengths and limitations of current service quality models with regard to their ability to define and explain the quality/satisfaction relationship. 5) Title: Improving satisfaction with bank service offerings Author(s): Lia Patricio, Raymond P. Fisk, Joao Falcao e Cunha Abstract: This article presents the results of a qualitative study of services that offering to satisfy the customers. The results of a qualitative study of a Portuguese bank regarding customer use of Internet banking integrated in a multi-channel offering that includes high street branches, telephone banking, and automatic teller machines. 6) Title: The value concept and relationship marketing Author(s): Annika Ravald, Christian Gronroos Abstract: The value concept is a basic constituent of relationship marketing. The ability to provide superior value to customers is a prerequisite when trying to establish and maintain long-term customer relationships. A reduction in customer-perceived costs may be a most recommendable method pf providing value to the customer, since, done

properly, it can improve the internal cost efficiency as well. It is then possible to establish and maintain mutually profitable customer relationships, which is of prime concern in relationship marketing.

CONCLUSION As my thesis related to customer satisfaction on value added services of HDFC bank. According to my thesis first I collected the different types of value added services which is provided by the HDFC bank. And then find out their satisfaction level regarding to the value added services provided by the HDFC bank. I also collected the information is related to, how they make satisfaction to their customers at the time when they use banking services by giving them value added services and make them comfortable so they feel satisfied. And also find out what are the advantages of these and how this VAS are helpful and beneficial to the bank customers. According to my study the reason to provide these value added services is that the customers would be more happier if they receive additional services or use additional services free rather then when they have to pay for them and hence will report greater satisfaction with the additional services.

Customers of HDFC bank are satisfied on the VAS provided by the bank but some of their customers are not satisfied by these services due to some reasons like the charges taken on some VAS, the time limitation of RTGS facility, hidden charges of credit card. Other reason of not satisfaction is that the corporate salary account facility and reimbursement account facility is available only for employees not for the other customers. The percentage of satisfied customers is much more then the unsatisfied customers. Instead of this bank should concentrate on theses unsatisfied customers and take some steps to satisfied them and retain them. HDFC bank should do promotional activity of this VAS so that its users can understand its benefits and usage. Bank should give the detail of these services and solve their query related and also give reason of their doing and convince the customers. By adopting these methods it create awareness about itself give knowledge about its products and services to the customers. Also it able to make a good impact on the customers to satisfied them and retains them.


According to the customers, they are satisfied with these VAS but few of them are not because these services are not of their use.

Customers are not satisfied with the charges which are taken on some VAS. Customers think that if these services are supplementary services and it is for their convenient then why charges are taken.

Customers are satisfied with the bank credit card facility but they are not satisfied with the hidden charges which are taken on credit card.

Customers are not satisfied with the timing of the RTGS facility. They want to increase this time limit.

The facility of corporate salary account is available only for employees not for other customers.

The facility of reimbursement account is only for those customers who are having salary account.

• Customers are more satisfied if they get supplementary services with the regular services.

SUGGESTIONS • Bank should take time to time feedback of their customers on these Value Added Services. Because HDFC bank is not concentrate on this type of activity. • HDFC bank should do promotional activity of these VAS so that their customers can understand the use and important of these services. • Bank should try to convince those customers who are not satisfied with the charges taken on VAS. They should clear the reason why they taken charges on some VAS. • They should provide all the information related to credit card and also give the reason for taken charge on credit card facility.

• HDFC bank should corporate salary account type facility to the other customers also because this facility is available only for employees. • If bank given the guidance and support to their customers on these VAS, then it will increase and maintain the customer’s satisfaction and retention.

GLOSSARY “Account(s)” refers to the Customer’s bank account(s) maintain with HDFC Bank, to be used for operations through RTGS, as specified in the RTGS Funds Transfer Application.

“Customer” means the applicant / remitter availing of RTGS. “HDFC Bank RTGS Facility” means the access to / use of RTGS offered by HDFC Bank to Customers.

“RBI” means the Reserve Bank of India. “RTGS” means the Real Time Gross Settlement System of RBI.

“Annual Report” A yearly publication that contains particulars relating to the operating data of a company, and which is published and distributed by the company to its share-holders, as per the requirement of the Companies Act.

“Bank Rate” The rate of interest charged by the Reserve Bank of India (RBI) on financial accommodation extended to banks and FINANCIAL INSTITUTIONS. The support is provided in the form of bills rediscounting facility and advances or REFINANCE against specified ASSETS (e.g. TREASURY BILLS and DATED SECURITIES) or PROMISSORY NOTES.

“Direct Taxes” Taxes whose impact and incidence are on the same person. The taxes levied on income, and wealth taxes are instances of direct taxes.

“Discount Rate” The interest rate used in calculating the PRESENT VALUE of future cash flows.

A study on CRM activities followed by HDFC  

FINAL REPORT ON “A study on CRM activities followed by HDFC Bank in Bhilai region.”

A study on CRM activities followed by HDFC  

FINAL REPORT ON “A study on CRM activities followed by HDFC Bank in Bhilai region.”