Market Research Project

On

Comparative Study of SAVINGS a/c

OfAXIS bank, ICICI bank and HDFC bank

Indian Institute of Planning and Management, Satbari

ACKNOWLEDGEMENT

With great pleasure, I express my heartiest thanks to Mrs. Priyanka J. for

giving me an opportunity to work under her guidance. She gave me the

guidelines that helped me a lot in the preparation of my research report.

I express my thanks to all the respondents to whom I visited, for their

support and valuable information, which helped me in the completion of my

research project work.

I express my sincere gratitude to my parents, friends and all others who have

directly or indirectly inspired and helped me to complete my project with

unremitting zeal and enthusiasm.

DECLARATION

I hereby state that this work is a result of study on the “Comparative study

of SAVINGS a/c of AXIS bank, ICICI bank and HDFC bank”. The

findings & conclusion expressed in this research report are genuine and for

academic purpose. It is my own and it has neither been submitted nor

published anywhere before any resemblance to earlier project or research

work purely coincidental. It is totally based on my hard work and creativity.

CONTENTS

1) Introduction

2) Objective of the study

3) About the organization

4) Research Design- Research Design- Sampling- Data Collection Methods

5) Comparison with Competitors

6) Limitations and Findings

7) Recommendations and Suggestions

8) Conclusion

SUMMARY OF THE STUDY

The research report throws light on the products and service so offered by

Axis Bank.

In current scenario customers are very much aware of their money

investment. They evaluate all the advantages and disadvantages of the

products and services provided by the banks. After being fully satisfied only,

they invest their money.

So, during this Research report, I have tried to show all aspects which

customers keep in mind while choosing a bank and its products or services;

and what they want from the side of the bank.

The main points included with in the project are : –

1 ) History and performance of the bank

2 ) Products and services offered by the bank

3 ) Potential of bank in the market i.e. its recognition by the

customers

4 ) Aspects considered by the customers while establishing any

relationship with the bank

OBJECTIVES OF THE STUDY

To know about Retail banking

To know about the scope of Retail banking

To know about the products in Retail banking

To Compare the products of competitor banks

ABOUT THE ORGANIZATION

WHAT IS BANKING?

There is no unanimity among the economists about the origin of the word “BANKING”.

The word “BANK” is itself derived from the Greek word “BANQUE” i.e. a bench. The

German word “BANC” means a joint stock firm.

In modern times, commercial banking occupies quite an important place in the

framework of every economy because of the continuing challenge it presents to those

who are responsible for managing the affairs of the nation’s bank’s and to those who

observe and study their performance.

EVOLUTION OF COMMERCIAL BANKING

As public enterprise, banking, as we know it today, made its first beginning around the

middle of the twelfth century in Italy. The Bank of Venice (1157) was the fist public

banking institution. Following its establishment, were established Bank of Barcelona

(1401), Bank of Geneva (1407). The famous Bank of Amsterdam was founded in 1609.

It was as popular as Bank of England now.

Not with standing the establishment of the Bank of England (1694), the development of

modern commercial banking institutions has to wait for another century and four decades

until the passage of the “BANKING ACT, 1833” which provided for the establishment

of the joint Stock Banks. It was the first banking regulation act introduced by the state.

COMMERCIAL BANKING IN INDIA

The “Calcutta Bengal Bank (1838)” was the first bank of India, which was renamed as

Presidency Bank later on. The English managed it. Now it is renamed as “State bank of

India”.

The first of limited liability managed by Indians was Oudh Commercial Bank founded

in 1881. Subsequently, the Punjab National Bank was established in 1894. Swadeshi

movement, which began in 1906, encouraged the formation of a number of commercial

banks. But banking crisis during 1913-1917 and failure of 588 banks in various states

during the decade ending in 1949 underlined the need for regulating and controlling

commercial banks. The Banking Companies (Inspection Ordinance) was issued in

January 1946. The Banking Companies (Restriction of Branches) Act was passed in

February 1949, which was subsequently amended to read Banking Regulation Act.

The RESERVE BANK OF INDIA was established under RBI Act, 1934 and

nationalized on 01/01/1949

.

STATE BANK OF INDIA is the India’s biggest bank and the largest bank in the

world by the number of branches (more than 68000 branches in India and

overseas).

As per a report of December 2001 in India consists of 294 scheduled banks

(including foreign banks) out of which 223 are in public sector of which 196 are

regional rural banks.

At end of June, 1969 deposits of these banks aggregated Rs. 4,646 crore. In

December 2001, this had increased to Rs. 882,373 crores.

Sector-had operation overseas with 92 branches (including 55 offshore units), 4

joint ventures and 12 subsidiaries and 14 representative offices.

CURRENT SCENARIO

The industry currently is in a transition phase. On the one hand the PSBs (Public Sector

Bank) which are main stay of Indian Banking System, are in the process of shedding their

flab in terms of excessive manpower, excessive Non Performing Assets (NPAs) and

excessive governmental equity, while on the other hand Private Sector Banks are

consolidating themselves although merger and acquisitions.

PSBs which currently accounted for more than 78% of total banking industry assets are

saddled with NPAs (a mind boggling Rs. 830 billion in 2000), failing revenues from

traditional sources, lack of modern technology and massive work force while the new

Private Sector Banks are forging ahead and rewriting the traditional banking business

model by way of their sheer innovation and service.

The PSBs are of course currently working out challenging strategies even as 20% of their

massive employee strength has dwindled in the wake of successful Voluntary

Retirement Schemes (VRS). The private players however can’t match the PSBs great

reach great size and access to low cost deposits? Therefore one of the means for them to

combat the PSBs has been through the merger and acquisition route.

In the near term, the low interest rate scenario is likely to affect the spreads of majors.

This is likely to results in greater focus on better management procedures consequently,

only banks that strive hard to increase their share of free-based revenues are likely to do

better in the future.

ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after

the Government of India allowed new private banks to be established. The Bank was

promoted jointly by the Administrator of the specified undertaking of the Unit Trust of

India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC) and other PSU insurance companies, i.e. National Insurance

Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance

Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding

(other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at

Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices

and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a

day banking convenience to its customers. This is one of the largest ATM networks in the

country.

The Bank has strengths in both retail and corporate banking and is committed to adopting

the best industry practices internationally in order to achieve excellence.

THEIR MISSION

Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

CORE VALUES

Customer Satisfaction through

- Providing quality service effectively and efficiently

- "Smile, it enhances the face value" is a service quality stressed on

- Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

OBJECTIVES OF AXIS BANK

To provide the various facilities to the account holders as well as the general

people which they could not get before.

Axis bank aims to provide customer world class products at competitive price

along with the technology that make their banking effortless.

The objective of Axis bank is not customer satisfaction but customer delight.

The objective of Axis bank is not only making profit but also to penetrate the

market to make good image in the market.

Axis bank also wants to make aware to the people about the various schemes

available like current accounts, saving accounts, home loans, car loans, two-

wheelers loans etc. by the seminars on various topics related to the finance and by

the help of advertising a face-to-face communication.

FUNCTIONS

To provide loans.

To provide finance in the form of equity.

To sponsor and underwrite new issues of share and securities.

To make fund available for investment.

To guarantee loans from private investment sources.

To provide loans in foreign currency.

To furnish managerial, technical and administrative services to the Indian

industries.

To serve as a merchant banker.

To provide lease financing.

To work as a trustee to setup mutual fund.

POLICIES OF AXIS BANK

1) COMPENSATION POLICY

The objective of this policy is to establish a system whereby the Bank compensates the

customer for any financial loss he/she might incur due to deficiency in service on the part

of the Bank or any act of omission or commission directly attributable to the Bank

subject to the terms prescribed under Paragraphs on 'Award of Compensation' and 'Force

Majeure' at the end.

The Policy is based on principles of transparency and fairness in the treatment of their

customers.

The Policy prescribes compensation only for financial losses which customers have

incurred due to deficiency in the services offered by the Bank which can be measured

directly and limited to compensation specified for respective service as given below. As

such, the commitments under this Policy are without prejudices to any of the rights the

Bank has/will have in defending its position before any forum duly constituted to

adjudicate the banker-customer disputes.

2) POLICY OF BANK DEPOSITS

One of the important functions of the Bank is to accept deposits from the public for the

purpose of lending. In fact, depositors are the major stakeholders of the Banking System.

The depositors and their interests form the key area of the regulatory framework for

banking in India and this has been enshrined in the Banking Regulation Act, 1949. The

Reserve Bank of India is empowered to issue directives / advices on interest rates on

deposits and other aspects regarding conduct of deposit accounts from time to time. With

liberalization in the financial system and deregulation of interest rates, banks are now free

to formulate deposit products within the broad guidelines issued by RBI.

This policy document on deposits outlines the guiding principles in respect of

formulation of various deposit products offered by the Bank and terms and conditions

governing the conduct of the account. The document recognizes the rights of depositors

and aims at dissemination of information with regard to various aspects of acceptance of

deposits from the members of the public, conduct and operations of various deposits

accounts, payment of interest on various deposit accounts, closure of deposit accounts,

method of disposal of deposits of deceased depositors, etc., for the benefit of customers.

It is expected that this document will impart greater transparency in dealing with the

individual customers and create awareness among customers of their rights. The ultimate

objective is that the customer will get services they are rightfully entitled to receive

without demand.

While adopting this policy, the bank reiterates its commitments to individual customers

outlined in Bankers' Fair Practice Code of Indian Banks' Association. This document is a

broad framework under which the rights of common depositors are recognized.

PRODUCTS OFFERED BY AXIS BANK

SAVINGS ACCOUNT

ZERO BALANCE SAVINGS ACCOUNT

EASYACCESS SAVINGS ACCOUNT

PRIME SAVINGS ACCOUNT

SALARY POWER

POWER SALUTE

SENIOR CITIZEN’S ACCOUNT

WOMEN’S SAVINGS ACCOUNT

NGO SAVINGS ACCOUNT

PENSION SAVINGS ACCOUNT

CURRENT ACCOUNT

NORMAL CURRENT ACCOUNT

BUSINESS ADVANTAGE ACCOUNT

BUSINESS CLASSIC ACCOUNT

BUSINESS PRIVILEGE ACCOUNT

CHANNEL ONE

CURRENT ACCOUNT FOR GOVERNMENT ORGANIZATIONS

CURRENT ACCOUNT FOR BANKS

CURRENT ACCOUNT FOR BANKS & REAL ESTATES

CAPITAL MARKET CURRENT ACCOUNT

KRISHI CURRENT ACCOUNT

BUSINESS GLOBAL CURRENT ACCOUNT

CLUB 50 CURRENT ACCOUNT

SHIPPING AND MARITIME CURRENT ACCOUNT

INLAND ROAD TRANSPORT CURRENT ACCOUNT

TRAVEL, TOURISM AND HOSPITALITY CURRENT ACCOUNT

NRI ACCOUNT

NRE SAVINGS ACCOUNT

NRO SAVINGS ACCOUNT

NRI PRIME ACCOUNT

NRI PRIORITY

PIS ACCOUNT

NRE SALARY ACCOUNT

RFC ACCOUNT

PRIORITY BANKING

RESIDENTS

NRI

DEPOSITS

FIXED DEPOSIT

RECURRING DEPOSIT

ENCASH 24

TAX SAVER FIXED DEPOSIT

LOANS

HOME LOAN

PERSONAL LOAN

LOAN AGAINST PROPERTY

LOAN AGAINST SECURITY

CAR LOAN

STUDY LOAN

CONSUMER LOAN

CREDIT CARDS

PRIORITY DEBIT CARD

DEBIT CARD

GOLD DEBIT CARD

GOLD PLUS DEBIT CARD

BUSINESS GOLD DEBIT CARD

REMMITANCE CARD

TRAVEL CURRENCY CARD

REWARDS CARD

MEAL CARD

GIFT CARD

ANNUITY CARD

INVESTMENTS

MOHUR GOLD

MUTUAL FUNDS

ONLINE TRADING

DEPOSITORY SERVICES

EDEPOSITORY SERVICES

INSURANCE

LIFE INSURANCE

HEALTH INSURANCE

PERSONAL ACCIDENT

HOME

CRITICAL ILLNESS

CATAGORIES OF SAVINGS ACCOUNT

There are various types of Savings accounts that are being offered by the

Axis bank.

1) ZERO BALANCE SAVINGS ACCOUNT

At Axis Bank it has been their constant endeavor to create products specifically catering

to the customer’s needs. The account while offering you a whole range of services also

addresses the latent need of having an account without the hassle of maintaining an

average quarterly balance.

It offers certain features

No Average Quarterly Balance requirement

Free International Debit Card with an Accidental Insurance cover up to Rs 2

lakhs (charges for the primary holder are waived)

Free mobile banking facility

Access through more than 675 branches and more than 2800 ATMs

At-Par cheque facility with the clearing limit of Rs 50,000

24x7 Telebanking & Internet banking

Free quarterly statements

2) NON-RESIDENT (EXTERNAL) NRE SAVINGS ACCOUNT

Any person resident outside India may open NRE account. This account permits a NRI to

hold and maintain foreign currency earnings in Indian rupees. The principal and interest

earned on these balances are freely repatriable.

Whether you are a student, a professional, a salaried employee or an entrepreneur, this

account will meet all your banking needs

Features

Change of Resident Status - In the event of the NRI returning from overseas on

a permanent basis the NRE Accounts is to be redesignated as resident accounts or

the funds held in these accounts may be transferred to RFC accounts if the

account holder is eligible for maintaining RFC account.

Nomination Facility - Nomination can be in favor of resident or non-resident

Repatriation of funds by nominee

Remittance abroad by Non-Resident Nominee: Banks may allow remittance of funds

abroad, or funds may be credited to NRE or FCNR deposits.

Remittances abroad by Resident Nominee: Funds are to be credited to the ordinary SB

account. If the nominee wants to remit funds outside India for meeting the liabilities of

the deceased, should obtain permission from RBI.

3) EASY ACCESS SAVINGS

The account is an endeavor by the Bank to understand the consumers' needs and redefine

banking to suit their requirements for a truly comfortable banking experience. Easy

Access Savings Account gives them instant access to their money anywhere, anytime.

Possessing a range of unmatched features, it has been devised to better suit the

convenience of their eclectic client base.

Features:

At Par Cheque Book - As an Easy Access Savings Account Holder, the cutomers

receive the "At-par" chequebook. They can encash these cheques as local cheques

at any of the 257 centers where the bank has a presence, at no extra cost. Drafts

are now history.

ATM Network Easy Access - Savings Account also entitles them to an

International Debit Card with which they can access their account anytime at all

the ATMs - both, Visa enabled and the partner banks - across the country.

Withdrawals and deposits (money as well as cheques) are possible with their

Debit Card. And unlike most other ATMs, an Axis Bank ATM allows them to

withdraw upto Rs 40,000 per day.

Anywhere Banking - Customer can transact through any of their branch offices

all of which are interconnected for their banking convenience. Transactions like

cash deposits, cash withdrawal, transfers and clearing deposits can all be carried

out wherever they happen to be.

Telebanking - Their Telebanking service provides customer instant access to

their savings account. It offers them a wide range of services over the phone such

as Account Information, Balance Inquiry, Transaction Details, Status of their

Cheque (available only during branch business hours) and even Statement of

Account on Fax.

IConnect - The idea of "your Bank on your desktop" is now a reality with

iConnect. Customer can lookup the status of their savings account, request new

cheque book, undertake a range of financial transactions, avail financial advisory

services, get information on mutual funds and shop online by just clicking the

mouse.

Mobile Banking - Mobile Banking enables customer bank with us through their

mobile phone irrespective of where they are. Avail facilities like balance inquiry,

debit or credit alerts, last three transaction details and cheque status.

Account Statement - Quarterly statements are delivered free of cost. Customers

can also avail the facility of monthly online statements through iConnect ( their

Internet banking channel).

Quarterly Interest - Every quarter, interest would be credited at the rate of 3.5%

per annum in their account.

4) PRIME SAVINGS ACCOUNT

At Axis Bank, they have always strived to pace their products with the growing needs of

their customers. The Prime Savings account has therefore been created with specific

financial requirements in mind.

Its features

Wider accessibility - As a Prime Savings account holder, one enjoys access to a

wide network of over 671 branches and one of the largest ATM networks in India

gives easy access to their account from almost any corner of the country.

Greater convenience - To simplify daily banking, Prime Savings account comes

with an international photo-signature Debit Card. This unique card comes with

withdrawal limit of Rs. 40,000 per day, facilitating transfer of funds, deposits of

cash/cheques and payment of insurance premium (LIC).

The Debit Card also comes with a comprehensive insurance cover inclusive of zero lost

card liability, purchase protection and personal accident insurance up to Rs. 2 lakhs. [To

keep their personal accident insurance cover activated, you should have made a purchase

transaction in 365 days prior to the day of the incident & should have maintained an

average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural

& semi-urban branches) as the case may be in the two quarters before the date of the

incident.]

More comfort - Through their24 hr Internet Banking and Tele Banking services,

you can enjoy the ease of banking from home or office. Through these

comprehensive services, you can access a range of facilities including online

funds transfer, requests for a new chequebook, Financial Advisory Services

(FAS), online shopping and information on mutual funds.

Enhanced privileges - The Prime Savings Account eases the banking experience

by providing them a passbook and monthly statement of account to keep them

updated on all their transactions and assist them better in managing their finances.

Added speed - Through the 'At Par' cheque facility, they have the unique

advantage to encash their cheques as a local cheque at more than 330 centers

where the bank has a presence at no extra cost. In addition the account enables

them to issue cheques up to Rs. 1 lakh, which will be treated as 'At Par' across

these locations.

They can avail of all these services with a minimum average balance of Rs 25,000 in

metro/urban/semi-urban centers and Rs 10,000 in rural centers.

5) SALARY SAVINGS ACCOUNT

At AXIS bank they know how important employee satisfaction is for an organization to

grow to its full potential. Which is why they have tailored their Salary Savings Account

not only to be a convenient way for people to manage salaries (across various centers,

through their centralized database), but also provide their employees with a range of

value added benefits.

Salary Savings Account comes with a host of facilities that give their employees access to

the complete gamut of banking services (including overdrafts, loans and zero-balance

requirements) on a preferential basis, making it the perfect incentive for their employees.

6) SMART PRIVILEGE ACCOUNT

In today's busy world it's tough being a workingwoman. Right from shuttling between a

job and family to taking care of her finances she has to be on her heels all the time.

Keeping this ideal in mind, Axis Bank has designed a savings account best suited for the

woman of today. Now with the Smart Privilege Account they can manage their money,

their life and enjoy a host of lifestyle privileges as well. What's interesting is that the

Smart Privilege Account ensures that they have enough time for all those important

things in life.

Features

Jewellery insurance on debit card - The photo signature international debit card

comes a host of enhanced privileges:

Jewellery Insurance

-Inbuilt Jewellery Insurance with card

-Protection against loss of Jewellery due to burglary or fire while at

home up to a limit of Rs. 50,000/-

-All risks covered at home

Free 5 ATM transactions per quarter at Non-Axis Bank ATMs

Waiver of 2.5% Petro surcharge

Issuance charge of Rs. 50/- & Annual Charges of Rs. 150/- plus

service tax

Enhanced Accidental Insurance up to Rs. 3 lakhs [To keep their

personal accident insurance cover activated, you should have made a

purchase transaction in 365 days prior to the day of the incident &

should have maintained an average quarterly balance of Rs 5,000

(urban & metropolitan branches) or Rs 2,500 (rural & semi-urban

branches) as the case may be in the two quarters before the date of the

incident.]

Dedicated Relationship Manager - A Dedicated Relationship Manager will be

their one point contact at the branch for all their banking transactions thus

ensuring that they would neither have to move from one counter to the other nor

stand in queues to await their turn.

Zero balance minor account - Imbibe the significance of regular savings in your

child. The Zero Balance Minor Savings Account is a unique feature that all

account holders can open for their children.

Features of Zero balance Minor account

No maintenance charges

Debit card offered to the minor above the age of 12 years, who can sign uniformly

-Daily withdrawal limits of Rs 1,500 at ATMs

-Daily spend limits of Rs 1,000 at merchant outlets

Free Monthly Statement clubbed with the statement of the Smart Privilege

account of the mother.

At-par cheque book at a nominal cost

Round-the-Clock access through ATMs - There could be a time in their life

when at 3 am they could require cash. With the round-the-clock access they can

withdraw cash up to Rs. 40,000 per day, deposit cash/cheques, transfer funds,

print a mini statement and pay insurance premiums (LIC), all this through one of

the largest ATM networks in the country.

Anywhere Banking - Imagine being in some other city and still have complete

access to all their transaction needs. You are a customer of the bank rather than

limited to being a customer of the branch. So even if you are traveling, you can

access your account easily from any of the 600 Axis Bank offices spread over 350

cities across the country.

At-par cheque facility – Their cheque will be treated as a local cheque within the

vast Axis Bank network of 600 offices across 350 cities in India. It frees them

from the hassles of getting a Demand Draft issued.

Monthly Account Statement

Additional discounts on loans

IConnectTM - The Complete online banking experience: It’s the age of Wi-Fi.

All the banking needs should be on the fingertips, with i-connect they can check

their account status, transfer funds, place online request for a new cheque book

and many more features without even having to visit an Axis Bank branch.

Financial Advisory Services - Their Financial Advisor will assist then with their

financial planning and help them to earn maximum returns on their savings.

Discount on Retail Purchases - Just live the feeling of walking into a store and

getting amazing discounts not available to others. As they are valued customer of

the bank, they shall endeavor to provide them with discounts at various outlets,

periodically.

Smart advantage - Smart Advantage is an exclusive insurance cover specially

designed for the holders of Special Women's Account that covers woman related

diseases. This insurance protects the woman against the risk of serious illness. It

gives the policyholder the security of knowing that a guaranteed cash sum will be

paid in case she is diagnosed with a life-threatening illness. The insurance is

available at a nominal premium to existing Special Women's Account holders.

7) SENIOR CITIZEN’S ACCOUNT

Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact

that a senior citizen's banking requirements are wholly different and require special

consideration.

Features:

Dedicated Relationship Managers - Their dedicated relationship managers are

only a phone call away. They can help the customer with all of their banking

needs. Be it a simple query or helping them to manage their finances.

Free At-par Cheque book - As there "Senior Privilege" Savings Account holder,

customer will receive free "At-par" chequebook, which empowers them to encash

their cheques as local cheques at any of the Axis Bank branch center.

Free International Visa Debit cards for the primary and the joint account

holders - A "Senior Privilege" Savings Account with Axis Bank entitles them to a

free International Debit card, which enables them to access their account anytime

at more than 2764 ATMs across the country. They can withdraw and deposit

money and cheques with their debit card. The daily withdrawal limit in an Axis

bank is a high Rs 40,000. They can use their debit card to make purchases at

merchant establishment.

A unique security feature to help safeguard their hard earned money is their photograph

and signature on the face of their debit card. All banks do not follow this feature.

Free Monthly Statement of Accounts/Free Passbook - As their privileged

customer, they would be entitled to a monthly statement of account. The

statement would give them detailed information on daily transactions with their

closing balances. They can also opt for passbook facility, at no additional cost.

Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank

branches - Get commission-free Demand Drafts and Pay Orders from their

branches drawn on Axis Bank branch.

Free Inward Remittances - Funds remitted by their near and dear ones in abroad

get to them through their correspondent banks for free.

Free Outward Remittances - Once a year remitting their money out of India is

possible for free once a year through their correspondent banks.

Faster Credits to Foreign Cheques - Funds remitted by their near and dear ones

abroad now get to them faster than ever.

Free Cheque pickup and Cash pick up services - Extended cash and cheque

pickup services are provided by them free of cost. They can also have cash

delivered at their residence at a nominal charge of Rs 50 per delivery.

Anywhere Banking - Make transactions like cash deposits, cash withdrawal,

transfers and clearing deposits from any of their branches, all of which are

interconnected for their banking convenience.

Telebanking - Their Telebanking service provides them with instant access to

their account. A wide range of services such as Account Information, Balance

enquiry, Transaction Details, Status of their Cheques (Available only during

branch business hours) and Statement of Account on Fax can be availed over the

phone.

Free Mobile Banking - Mobile banking enables you to bank with us through

their mobile phone irrespective of where you are. Avail the facility of balance

enquiry, debit or credit alerts, last three transaction details and cheque status.

IConnect - The concept of "your Bank on your Desktop" is now a reality with

iConnect. They can look-up the status of their account, request new cheque book,

undertake a range of financial transactions, avail financial advisory services, get

information on mutual funds and shop online by just clicking the mouse.

Customized Loan Offerings - Loans against Fixed Deposits -up to 95% of the

FD amt at an interest rate of 1% over the rate of interest of the FD.

NSCs/KVPs/LIC Policy - the rate of interest 1% less than other customers and no

processing fees and no pre payment penalty.

Complimentary Financial Planning - Everyone has diverse needs based on their

situations, therefore requiring customized solutions. With the help of their

complimentary investment planning, you will know exactly what to do with their

money to realize their financial objectives.

Silver Health - Medical Insurance for Senior Citizens - Entry age is 70 years.

The medical test (mandatory) is carried out Free of cost only for Senior Privilege.

8) DEFENCE SALARY ACCOUNT

Defence Salary Account from Axis Bank is a product designed keeping in mind how

tough a life in the Defense Forces is. Not only does it come to them absolutely free, no

minimum balance is required either. They can also access the entire Axis Bank network,

including more than 2300 ATMs and 550 branch offices (and growing) no matter where

they are posted.

With the complete gamut of banking services (including overdrafts, loans and zero-

balance requirements) they can be rest assured about their family and all their financial

needs. It's their way of showing their appreciation to their work.

Banking Privileges:

At-par Cheque Facility - Their job involves constant transfers across the

country. With the at-par cheque facility it will no longer be necessary to set up

new bank accounts with each transfer.

Additional Debit Card - Along with a free International Debit Card, they also

get a free card for the joint account holder. This means that their child or spouse

also enjoy the same benefits of banking with Axis Bank.

Financial Advisory Services – Their solutions answer to the twin goals of

meeting their requirements and to diversify and spread the risk of their investment

portfolio, so you can look forward to a comfortable and worry-free life. They first

understand their exact investment needs and then design the perfect investment

plan for you.

Their investment plan could include investments in:

- Mutual Funds - Debt and Equity

- Bonds

- Axis Bank Fixed Deposits

9) NGO SAVINGS ACCOUNT

Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend

their lives thinking of others. It is a complete banking solution for Trusts, Associations,

Societies, Government Bodies, Section 25 companies and NGOs, so that the

organizations can devote all of their time to their noble motivations.

Features

A Savings Account for their Trust with a confessional Average Quarterly

Balance.

A multi-city at-par cheque facility with no limit on clearing payments at centers

across the country wherever we are present.

Free anywhere banking across all their Branches and Extension Counters and

over all their ATMs.

Free Demand Drafts or Pay Orders as and when required by you to remit funds.

Free collection of cheques at outstation locations.

Monthly Statement of Account delivered at their doorstep.

Facility for collecting donations in their account through their network of

Branches and Extension Counters across the country, as well as through iConnect

- their Internet Banking facility.

Also, Axis Bank can offer the facility to donate funds to their Trust through their Internet

Banking facility iConnect to its customers. An Axis Bank customer can donate any

amount to their Trust through the Internet.

In such cases, the savings account of the customer gets debited and the savings account of

their Trust gets credited with the amount of donation at the same time. At the end of

every month, the Bank will provide an MIS giving details of the amount of donations and

the name of donor. This will enable the Trust to issue receipts to the donors.

Free Internet Banking facility that enables you to view the status of their

account, transfer funds and carry out a number of banking activities from the

comfort of their home or office.

Investment Advice - Their Financial Advisory Desk will provide portfolio

management advice as well as help you undertake investments.

Free Demat - To facilitate their investments, we offer a free Demat Account

(charges due to NSDL must still be levied) to their esteemed account holders in

the Trust or Society segment.

Constituent Subsidiary General Ledger (SGL) account - The Constituent

Subsidiary General Ledger (SGL) account through which investments in Govt.

securities are carried out comes with a host of value-added services

- Investment advice related to the customer's g-sec portfolio.

- Offer of better rates on sale of government securities from the Bank's

stock of securities.

- Concessions in transaction and service charges. (However charges that

have to be directly passed on to the Clearing Corporation of India as part

of the Negotiated Dealing System for trading in g-secs cannot be waved -

a fact, which will be communicated up front.)

Foreign Contribution (Regulation) Act [FCRA] accounts - The FCRA account

enables approved organizations to receive foreign contributions for utilization in

their activities in India. The Bank will provide assistance in the process of

documentation and obtaining necessary approvals from Ministry of Home Affairs

at New Delhi.

10) PENSION SAVINGS ACCOUNT

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's

(Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defense

Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly

different and require special consideration.

Benefits

Timely communication to the customer on receipt of the PPO.

No delays in commencement of pension disbursals - The Bank is handling the

disbursement of Pension under a Centralized Pension Disbursement Module

wherein the Pensioner records are credited centrally through its Centralized

Pension Payment Hub (CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately

previous financial year.

Timely revisions based on changes in rates of Pension or Dearness Allowance,

done centrally from the CCPH.

11) RESIDENT FOREIGN CURRENCY (domestic) FRC (D) ACCOUNT

If you pay commissions for foreign currency every time you travel abroad, if you spend

sleepless nights wondering how to keep your foreign currency safe, if the frequent

fluctuations in forex market tantalize you, if you regularly issue cheques and drafts for

payments abroad or if you are a bibliophile who makes foreign currency payments for

books purchased online, its time you had an Resident Foreign Currency (Domestic)

Account with Axis Bank.

Resident Indians and Foreign Currency - Holding foreign currency is no longer

restricted to the NRIs. For the first time Reserve Bank of India has allowed Resident

Indians to maintain foreign currency accounts without any ceiling to it. This step is

considered as a continuation of RBIs gradual endeavor towards achieving 'Full Capital

Convertibility'.

The Product Offerings - A Resident Foreign Currency (Domestic) Account, RFC(D),

with Axis Bank entitles you to maintain non-interest bearing current account in four

major currencies (USD, EURO, GBP and Japanese Yen). There will be no ceiling on the

balances held in the account. Chequebooks denominated in USD or GBP or EURO or

Yen will be issued on these accounts with 25 leaves. The cheques thereby branded as

RFC (Domestic) Account will not be presented in clearing and will be payable only at the

issuing branch.

The min balance for such a current account will be USD 100 or GBP 60 or EURO 100 or

Yen 20,000. There will be a penal charge of USD 5 or GBP 3 or EURO 5 or Japanese

Yen 1,000 per quarter in case of failure to maintain the min balance requirements.

The RFC (D) account holders will not be allowed any ATM facility as of now. However

they can use 'iConnect' for enquiry purposes only.

RESEARCH METHODOLOGY

Marketing research may be defined as “the systematic gathering, recording and

analyzing of data about problems relating to the marketing of products and services under

non-recurring condition”.

“Marketing research is the process of designing, gathering, analyzing and

reporting information that may be used to solve a specific technology problem”.

Steps in Marketing Research Process:

Establish the need for Marketing Research

Define the Problem

Establish Research Objective

Determine the Research Design

Identify Information Types and Sources

Determine Methods of Accessing Data

Design Data Collection Form

Determine Sample Plan and Size

Collection of Data

Analysis of Data

Conclusions and Recommendations

Now we concentrate on Research Methodology and Data Collection Method.

Methodology plays a lead role in each and every project work. The research methodology

consists of the following steps:

STEPS IN SAMPLE DESIGN

Type of universe:

The first steps in developing any sample design are to clearly define the set of objects,

technically called the universe, to be studied. The universe can be finite or infinite. In

finite universe the number of items is certain, but in of an infinite universe the number of

items is infinite i.e., we cannot have any idea about the total number of items. Since I

have done my summer training in AXIS Bank, Delhi so my universe is Finite.

Size of sample: 122

This refers to the number of items to be selected from universe to constituent the names.

This major problem before a researcher the size of sample should neither be expressively

large nor should too small it be optimum.

Sampling unit:

A decision has to be taken concerning a sampling unit before selecting sample. Sampling

unit may be a geographical one such as state, district, village, etc or a construction unit

such as house flat, etc, or it may be social unit such as family, club school etc, or it may

be an individual. My sampling unit is people of Delhi location.

DATA COLLECTION

The task of collecting the data begins after a research problem has been defined and

research design/plan chalked out. While deciding about the method of data collection to

be used for the study the researcher should keep in mind two types of data viz., primary

and secondary.

Secondary data: The secondary data are those which have been already collected by

someone else and which have already been passed through the statistical tool.

"Secondary data are statistics not gathered for the immediate study at hand but for some

other purposes."

Secondary data can be classified into:-

1) Internal Secondary Data:

“Data that are originated within the firm for which the research is being conducted are

internal data. If they were collected for some other purposes, they are internal secondary

data."

2) External Secondary Data:

The second form of secondary data is external sources, which are generally published

and are available in different form and different sources.

ABOUT ICICI BANK

ICICI Bank is the second largest bank in the country. ICICI bank began its retail-

banking venture in mid-1999. By January 2000, it had moved on to introducing home

loans, car loans, personal loans and credit cards.

Realizing the need for a bigger retail deposit base, the bank started building a branch and

an ATM network. The acquisition of Bank of Madurai is March 2001 added 263

branches, many of them in cities where ICICI bank did not have a presence.

The merger of the erstwhile financial institution ICICI limited with the bank in April

2002 gave it a ready-made corporate clientele. The flip side was that ICICI bank had Rs.

10,000 crore of restructured assets for which it had to make provisions.

ICICI Bank has total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008

and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is

second amongst all the companies listed on the Indian stock exchanges in terms of free

float market capitalization. The Bank has a network of about 1,308 branches and 3,950

ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking

products and financial services to corporate and retail customers through a variety of

delivery channels and through its specialized subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches

in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International Finance Center and representative offices in United Arab Emirates, China,

South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has

established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

CATAGORIES OF SAVINGS ACCOUNT OF ICICI BANK

1) SAVINGS ACCOUNT

An ICICI Bank Savings account offers you a valuable banking experience.

Features

Debit-cum-ATM Card - With an ICICI Bank Savings Account you will get a

debit card that you can use to withdraw cash from any ATM. Charges are

applicable if you use a non-ICICI Bank ATM.

You may also use your debit card to directly make purchases through a Visa POS

(Point of Sale) machine available at most stores! This will help you access your

high interest account from anywhere.

Money Multiplier Facility - Allow us to take care of your idle money by moving

it into high interest savings account earning.

Internet Banking - Banking could not have been more convenient. Just log in

with your user ID and password and make banking a hassle-free routine.

Customer Care - Our 24-hour Customer Care is always available to answer any

query or take your instructions.

Mobile Banking - Transferring funds or getting to know your balance is as easy

as sending an SMS.

Standing Instructions - ICICI Bank accepts and supports Standing Instructions.

You don’t have to worry about the chore of carrying out a routine transaction. Just

set up a Standing Instruction and leave it to us to manage.

Nomination Facility - You may nominate a person as beneficiary to your account

proceeds.

Bank@Home - A new banking service that allows you to order cash deposits and

withdrawals from home. The service includes cash /cheques deposits and

cash/DD/PO delivery at home.

DD Call and Collect

Don’t waste even a minute in a queue to collect a Demand Draft or Pay Order. On

the way to the branch, just call Customer Care, provide details of the DD to be

prepared and collect it ready and signed at the branch!

2) SPECIAL SAVINGS ACCOUNT

Features

Operating account with free multi city chequebook facility.

Money Multiplier Facility

We trust totally your commitment to the account and the relationship and do not

prescribe any minimum balance requirement. In other words, there is no penalty

for non-maintenance of minimum balances in the accounts.

Internet Banking

Phone Banking

Free Anywhere banking

Free collection of outstation cheques

Free monthly account statements

Inward remittance through Money2India for FCRA approved trusts

3) LIFE PLUS SENIOR CITIZEN ACCOUNT

Features

No more waiting in long queues for you, a senior citizen can now approach the

Special Senior Citizen desk at any ICICI Bank branch and get his / her account

serviced.

Earn a higher interest rate on your terms deposits with us

Demand Loan / overdraft against deposits will be upto 90% of the deposit

The upcountry cheque collection facility for locations with ICICI Bank presence

free of charge to the Senior Citizen customers

Now, get a specially designed debit card with your new 'Life Plus' Senior citizen

account. This ICICI Bank Ncash debit card is a debit-cum-ATM card providing

you with the convenience of acceptance at merchant establishments and cash

withdrawals at ATMs. With a per-day limit of Rs.25,000 each for ATM

withdrawals as well as for POS transactions , the Debit Card only adds more

comfort and convenience! This is available free of cost to ICICI Bank Senior

Citizen customers

Free quarterly physical statement

Payable-at-par cheque book

Free Access to any Bank's ATM -The next time you want to withdraw cash from

your ICICI Bank account, just walk into any bank's ATM and use your ICICI

Bank ATM-cum-Debit card

Free Demand Draft / Pay Order

Money Multiplier Facility - The Money Multiplier feature gives you the

liquidity of a Savings Account coupled with high earnings of a Fixed Deposit.

This is achieved by creating a Fixed Deposit linked to your Savings Account

providing you the following unique facilities.

- Maximum returns - Your money is never idle. Creation of a linked FD

ensures higher rate of interest on your Savings Bank Deposits. You can

issue instructions through any channel such as the ICICI Bank Branch,

ICICI Bank Phone Banking and ICICI Bank's Internet Banking for

creation of Fixed Deposit(s) from the surplus funds in your Savings Bank

Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be

created in multiples of Rs. 5,000 for a tenure of one year or more as

instructed by you.

- Maximum Liquidity - You can withdraw the funds from your savings

account through any channel such as the ICICI Bank ATM, ICICI Bank

Internet Banking or by issuing a cheque. etc. All linked Fixed Deposits

will be enabled for automatic Reverse Sweep in multiples of Rs. 5000 on a

Last-In-First-Out (LIFO) basis when the balance in the Savings Account

falls below Rs.10, 000. The amount reverse swept will earn interest rates

at the applicable rate for the period that the deposit was held with the

Bank. The remaining amount will continue to earn higher interest at the

original rate applicable to the fixed deposit.

Auto Renewal - Under this facility, when your deposits fall due, the bank will

automatically renew the principal and accrued interest for the same tenure as the

original deposit. 

Internet Banking is offered free of cost - ICICIBank.com, our Internet Banking

Service, is a convenient remote banking facility providing you with easy and

secure access to your accounts.

With just a PC connected to the Internet, you can have your account information at your

fingertips, from anywhere in the world, anytime.

So, if you don't want branch timings to restrict you, Internet Banking is just the service

for you.

Nomination facility [Nomination facility available for bank deposits. There can

be only one Nominee for a deposit account whether held singly or jointly. A

person legally empowered to operate a minor's account can file a nomination on

behalf of the minor. Applicants can make nomination by filling up the Form

prescribed under the Banking Companies (Nomination) Rules 1985. The

nomination details can be changed during the subsistence of the account

relationship by filling up the Form prescribed under the Banking Companies

(Nomination) Rules 1985. For more details approach your bank.] is available.

Interest is payable half-yearly.

4) YOUNG STARS ACCOUNT

At Young Stars, we will guide your child through the world of banking - from checking

the child’s savings account balance to guiding through fun zones and special pages on the

Internet Banking channel. It makes banking a pleasure and teaches your child to manage

his or her personal finances through a savings account.

You can transfer pocket money into your child's account. You can even shop with him /

her at Young Stars Shopping Page. You can also open a recurring deposit in your child's

name.

Once you are done with your 'banking', you can access your child's account with all the

fun links to special zones designed to suit your child's area of interests and also impart

knowledge on the current events of the world.

Features:

Young Stars is a banking service for children, aged up to 18 years, brought to you by

ICICI Bank to help the parents meet the present and future aspirations that they hold for

their child. It offers various savings and investment options to the parent along with

teaching the child to manage his/her personal finance in a more responsible and

independent manner.

To make the experience a pleasure we offer:

Option of a Savings Bank account, Fixed Deposit or Recurring Deposit

Minimum average balance to be maintained at Rs. 2,500/- per quarter for the

Savings Bank account.

A special Recurring Deposit with additional features as below:

- The parent would put forward the desired amount to be earned at the end

of the tenure.

- Based on the prevailing rate of interest, the bank staff would then back

calculate the installments to be deposited now till maturity.

Free personalized chequebook

Free International debit card for children above the age of 7 years with features

as below:

- Daily withdrawals limits of Rs. 2500/-

- Daily spend limits of Rs. 2500/-

The next time you want to withdraw cash from your ICICI Bank Young Stars

Savings account, just walk into any bank's ATM and use your ICICI Bank ATM-

cum-Debit card for free. The above benefit is available to Young star Savings

Account holders on maintenance of a quarterly average balance of more than

Rs.10,000 in the savings account in a quarter. The above benefit can be availed in

the same quarter

.

Free Internet banking

- Separate login ids and transaction password.

- Access to special zones and links to related websites for making Internet

banking a memorable experience.

Facility to transfer funds from parent account to kid account to enable parents to

inculcate savings habit amongst children

Facility of transferring funds from the Young Stars accounts to the RD to enable

the parents to let their child earn more.

5) ADVANTAGE WOMAN SAVINGS ACCOUNT

ICICI Bank Advantage Woman Account – an account for the woman of today who is

looking for independence and an identity of her own, a savings account which will help

you save for the future as well enjoy the present.

Get a specially designed woman's debit card which helps you shop and save

simultaneously, manages your household expenditures and comes with a bag full of

offers attached to it.

This savings account brings to you our entire core banking services with many exciting

benefits and features attached, especially for our women customers.

Features

Zero Balance facility with a RD of just Rs. 2,000 - Now just maintain a

Recurring Deposit of Rs. 2,000 with us and get a hassle free zero balance savings

account.

A Special International Woman's Debit card along with the account with a

withdrawal / spending limit of Rs. 25,000 per day.

Also, take full advantage of gamut of discounts and benefits on your Special

Woman's Debit card.

Free Unlimited Access to any bank's ATM - Enjoy free unlimited access to any

bank's ATM for cash withdrawals and balance enquiry.

Payable-at-par chequebook -With the Advantage Woman account, you get a

free, multi-city chequebook.

Free quarterly physical account statement and free monthly email statement

(on customer request)

Bill Pay - No need to waste precious time in queues to pay bills. Pay your

telephone, electricity, mobile phone bills, etc. online or through our Customer

Care, by giving us a one-time standing instructions.

Multi Channel Access - For carrying out routine banking transactions or to

register for services like credit cards, utility bill pay, cash pick-up and delivery on

call, etc. conveniently access to your savings account through any of the

following channels:

o Access to over 950 ICICI Bank branches and 3,500 ATMs

o Free Internet Banking

o Free Phone Banking

o Mobile Banking

Nomination facility available

6) RESIDENT FOREIGN CURRENCY (domestic) (RFC (D))

ACCOUNT

Do you want to save money while buying foreign currency for traveling abroad? You can

buy traveler’s cheques, foreign currency in cash and foreign currency demand draft for

your expenses overseas. If you are a frequent traveler, you may not want to go through

the hassles of buying foreign currency every time you travel abroad.

The Reserve Bank of India has now made it easier for you to access foreign currency by

permitting a foreign currency account (domestic) for resident Indians. In line with RBI

guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your forex

worries. You can park your foreign currency in ICICI Bank under RFC (D) account.

Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be

maintained in four major currencies (USD, EURO, GBP and Japanese Yen).

Benefits of ICICI Bank RFC (D) Account

Saving in commission charges, as you can withdraw foreign currency when you

want without any conversion charges

Facilitates your payments for foreign travel expenses

No ceiling on deposits

Convenient and value-added banking

Protection to your money from valuation risks due to exchange rate fluctuations.

Features:

ICICI Bank RFC (D) Account has been created to meet your need for accessing foreign

exchange frequently without any hassle. It will save commission charges and will also

protect your money from valuation risks due to exchange rate fluctuations.

Product Features:

RFC (D) Account is a single currency account. It can be opened in Pound

Sterling (GBP), US Dollar (USD), Japanese Yen (JPY) or EURO (EUR).

Deposits in multiple currencies in a single account are not permitted. You may

open separate accounts for each of the permitted currencies.

Protects your money from valuation risks due to exchange rate fluctuations.

No exchange charges will be levied for converting foreign currency into INR.

This account will be maintained in the form of a current account. No interest is

payable on deposits.

Foreign Currency BUY rate of ICICI Bank as prevailing for that currency on the

day of the transaction will apply for converting the foreign currency into INR.

Foreign currency withdrawals can be possible in the form of cash, traveler’s

cheque, foreign currency DD. Withdrawal limit will be as per RBI guidelines.

No ceiling on the maximum amount of deposit in the account.

No minimum balance required.

Nomination facility.

7) RURAL SAVINGS ACCOUNT

Features

The Rural Savings Account will be available through Business Correspondents.

The account is zero balance with no initial deposit.

The Customer is provided with an E-passbook.

All transactions in the accounts are done only after a biometric authentication.

Nomination facility is available.

Interest is payable half-yearly.

8) PEOPLE’S SAVINGS ACCOUNT

Features

A savings account from ICICI Bank available only through our Rural branches.

Minimum balance of Rs.500/-.

No annual fees.

Unlimited transactions at the base branch where you have opened your account.

Internet, Phone and Mobile banking free of cost.

9) FREEDOM SAVINGS ACCOUNT

The all-new ICICI Bank Freedom Savings account now brings you free access to your

money – from over 18,000 ATMs of all Banks, across the country. Add to it a host of

services like Mobile Banking, Internet Banking, Customer care, Anywhere Banking and

lots more. And you get a Savings Account that gives you freedom like no other.

Key Features:

Enjoy free, unlimited access to all non-ICICI Bank ATMs (for cash withdrawals

and balance enquiry)

Minimum quarterly average balance of Rs.10,000.

ABOUT HDFC BANK

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.

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. 

CATAGORIES OF SAVINGS ACCOUNT IN HDFC BANK

1) REGULAR SAVINGS ACCOUNT

This is the crème product of HDFC Bank. Its minimum depository amount is Rs. 5,000

only. On the cost of this Bank provides many benefits and advantage.

Features and benefits

Wide network of branches and over thousand ATMs to meet all your

banking needs no matter where you are located

Bank conveniently with facilities like Net Banking and Mobile Banking-

check your account balance, pay utility bills or stop cheque payment,

through SMS.

Never overspend- Shop using your International Debit Card that reflects

the actual balance in your savings account.

Personalized cheques with your name printed on each cheque leaf for

enhanced security.

Take advantage of Bill Pay, an instant solution to all your frequent utility

bill payments. Instruct for payment over the phone or through the Internet.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver

facility on your account.

3 Free transactions on SBI/Andhra Bank ATMs per month.

Free Payable-at-Par chequebook, without any usage charges upto a limit

of Rs.50,000/- per month.

Free InstaAlerts for all account holders for lifetime of the account.

Free Passbook facility available at home branch for account holders

(individuals).

Free Email Statement facility.

2) SAVING PLUS ACCOUNT

In this “plus” means customer are provided with some additional features of saving

regular. Its minimum depository amount is Rs. 10,000 only.

Features and benefits

An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.

2 free transactions on SBI/Andhra Bank ATMs per month.

3 free transactions on any other bank ATMs per month.

Free Payable-At-Par chequebook without any usage charge up to a limit of

Rs. 50,000 per month.

Free International Debit Card for all account holders, for lifetime of the

account.

Free Demand Drafts on HDFC Bank locations, up to a limit of Rs 25,000 per

day.

Free Bill Pay & Insta Alert facility for all account holders for lifetime of the

account.

Free National Electrical Funds Transfer facility, Net Banking, Phone Banking

and Mobile Banking.

25% off on the Locker Rental for the 1st year.

Special relationship discount on purchase of Gold Bars.

Free E-mail Statement facility.

Free Pass Book facility available at home branches for account holders

(individual).

Inter-city Banking and Multi-city Banking.

3) SAVINGS MAX ACCOUNT

This account provides “maximum benefits” to its customers. Due to having this product

HDFC Bank occupies a special position in Private Banking Sector. For availing the

facilities of this account, customer has to deposit and maintain minimum amount of Rs.

25,000 only.

Features and benefits

An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.

Free unlimited transactions at all HDFC Bank ATMs and any other Bank

ATMs using your HDFC Bank Debit Card.

Free Gold Debit Card for primary account holder, for the lifetime of the

account. Gold Debit Card for other account holder at Rs. 250 p.a.

Free Woman’s Advantage/International Debit Card for all account holders,

for lifetime of the account.

Free Payable-at-Par cheque book without any usage charges, up to a limit of

Rs. 100,000 per month.

Free Demand Drafts on HDFC Bank locations, up to a limit of Rs.50,000 per

day.

Optional Sweep Out facility to transfer extra saving to a Fixed Deposit at the

threshold of Rs. 50,000 in account. The amount above Rs. 50,000 will

automatically be swept out in to fixed deposit with a minimum value of Rs.

25,000 for 1 year 1 day period.

Free Bill Pay and Insta Alert facility for all account holders for lifetime of

the account.

Free Monthly Statement of Account.

50% off on the Locker Rental for the 1st year.

Folio maintenance charges on Demat Account waived for the first year.

Free Pass Book facility available at home branches for account holders

(individual).

Free E-mail Statement facility.

Free National Electronic Fund Transfer facility, Net Banking, Phone Banking

and Mobile Banking.

Self /Third Party Cash Deposit and Withdrawal at non-home branches, up to

Rs.50,000 per day is free and Rs. 2.90 will be charged per thousand on the

amount deposited above Rs. 50,000 limit.

4) KIDS ADVANTAGE ACCOUNT

This account is specially designed keeping customer’s child future in mind. Customer

must have/open a Savings Account in HDFC Bank and invests a sum of Rs. 10,000 in a

Fixed Deposit in child’s name, and then a Zero Balance Kid’s Advantage Account

linked to the FD is opened in the child’s name with customer as guardian.

Features and benefits

For their Growing Needs

Free Education Insurance cover of Rs.1,00,000/- in the event of death of the

parent / guardian through vehicular accident by road, rail or air to safeguard the

future of your child.

ATM/International Debit Card will be issued for children between 7-18 years of

age in the child's name with your permission. The amount your child is able to

withdraw is Rs. 1,500/- at ATMs or spends Rs. 1,000/- at merchant locations.

Your child need not even search for an HDFC Bank ATM. He/she can make 3

cash withdrawal transactions from SBI/Andhra Bank ATMs per month, absolutely

free.

Free personalized chequebook for your child.

Monitor the transactions of your child's account with the free quarterly physical

statement of account or free monthly Email Statement of account.

Free NetBanking for you to monitor your child's account.

Free SMS/Email alerts informing you about the account transactions.

For their Secured Future

Opt for standing instruction to transfer any amount from your account to your

Kid's Advantage Account every month (Minimum value = Rs. 500/- & Minimum

tenure = 1 year).

Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 10,000/-,

the amount in excess of Rs. 5,000/- will automatically be transferred into a Fixed

Deposit for 1 year 1 day, in your child's name, by signing in for our sweep-out

facility.

You can also opt for systematic investments in mutual funds from the Kid's

Advantage Account in your child's name.

5) FAMILY SAVINGS GROUP

The persons who can apply for Family Savings Group are:

Existing customers – having one or more accounts with us (Savings / Salary /

NRI / Salary Reimbursement / Kid’s Account) at the same or different

branches.

New customer – you and your family members intend to have one or more

accounts with us..

Features and benefits

Free International Debit Card for all account holders, for life.

5 free transactions on SBI ATMs per month per group.

Gold Debit Card at Rs. 250 for all account holders.

2 free DDs on HDFC Bank locations, per account per month (up to a limit of

Rs.25,000 per day).

Sweep-In facility to a nominated saving account from other accounts in the

group.

Free one view to access all your accounts.

Free National Electronic Funds Transfer facility, Net Banking, Phone Banking

& Mobile Banking.

25% off on annual locker rentals.

Folio maintenance charges on Demat account waived for first year for all

account holders.

Preferential pricing on credit cards.

6) PENSION SAVINGS ACCOUNT

A Pension Saving Account is a Zero Balance Account that accumulates your pension

over the years. It comes with a free International Debit Card and facilities like Phone and

Net Banking. You can access this Account from any branch within the HDFC network

and also request for transfer to another bank.

Features and benefits

The Pension Saving account is a Zero Balance Account.

Timely credit of receivables

Free International Debit Card.

Enjoy facilities such as NetBanking, PhoneBanking, BillPay, ATM facility, inter-

city and inter-branch banking.

Pension Accounts are transferable from one branch/bank to another.

LIMITATIONS AND FINDINGS

LIMITATIONS

The main limitations of the study are:

The sample size was quite small which is unable to represent the whole universe.

It was found that many of the respondents did not have any knowledge of the

product.

The non-cooperative nature of many of the respondents acted as constraints.

Throughout this project report we can measure the potential of the bank in the

selected area but cannot measure the capabilities, skills and efficiencies of the

Customer.

ADVANTAGES OF HDFC BANK:

HDFC Bank has many advantages over MNC Banks. Some of its important advantages

are mentioned below:

1. Since HDFC Bank is the largest profit-yielding Bank among other private sector

banks, customers are attracting towards it.

2. In HDFC Bank, number of customers are limited that is why, quality of services

provided to them are good.

3. Customers reaching to the HDFC branches are of higher profile and well

educated so; it becomes easier for the employees to make them aware about the

products features and formalities.

This advantage also helps employees to convince customers for further

investments.

4. Net Banking, Phone Banking, Insta Alert, Anywhere Banking etc. are the

major facilities provided by the Bank to its customers.

5. Every branch of HDFC Bank are well furnished and fully air-conditioned with

the latest technologies.

6. HDFC Bank is located on every two kilometers in metropolitan cities which is

very convenient for the customers.

7. It has more than 1500 ATM’s all over the country, by which customer can easily

deposit and withdraw his money from any location.

8. In its certain products like Saving Max Account, third party transactions are

also allowed.

9. Since its minimum depository amount is Rs. 5000 in Saving Account, it is a bank

of higher profile people.

10. In HDFC Bank, if any customer is maintaining AQB (Average Quarterly

Balance) 0f Rs. 2,00,000 – 3,00,000 continuously for 1-2 years, they will get the

facility of PREFFERED CUSTOMER.

11. After being the customer of HDFC Bank, customer can pay his Utility Bills by

sitting at his home only through the facility of Net Banking.

12. It also gives special considerations to its women customers also. It provides the

facility of WOMEN ADVANTAGE CARD to them through which they can:

Pay their utility bills totally free of cost.

Get 50% discount on Locker Facility on HDFC branches.

On every purchasing they will get 0.5% cash back.

Get accidental insurance of Rs. 2,00,000.

13. In HDFC Bank, the main emphasis is given on retaining the customers forever.

14. HDFC Bank focuses on quality of customers instead of quantity.

15. Customers can save his lots of time after becoming the customer of HDFC Bank.

DRAWBACKS OF HDFC BANK:

There are certain advantages of HDFC Bank, which acts as its drawbacks also. Some of

its important drawbacks are as follows:

1. The main disadvantages of this bank are that in this bank there is no Job

Security to its employees. If they fail in achieving their targets, they will be fired

out.

2. Employees always feel pressure of work like 8 a.m. to 8 p.m. as working

schedule, completing targets assigned to them. They cannot work freely.

3. Instead of opening branches on every two kilometers in metrocities, it should also

focus on urban and semi-urban areas.

4. One of its main advantages is its Net Banking Facility but it is useless for the

customer who is not having any knowledge of computers. This shows that it does

not follow the concept of KYC i.e. know your customer.

5. The policies of bank are such that it is beyond the reach of low profile people i.e.

low profile people cannot operate this bank.

A few reasons why many people would not like Axis Bank are

1] Call handlers are not trained enough.

2] Customers have poor product knowledge.

3] Not accessible 24 hours.

4] Query is not attended and sometimes never understood by these CSA agents.

FINDINGS

HDFC Bank reported over 30 per cent y-o-y growth in net profit in the June ’08 quarter.

The stability in earnings growth of HDFC Bank is much higher than that of ICICI bank.

The gap in the profit growth between the two banks was not high till the March ’08

quarter. But ICICI started showing signs of a slowdown in its retail loan book in the

March ’08 quarter itself. This was evident as HDFC Bank posted a growth of 39 per cent

in its retail advances in FY-08, while ICICI managed to grow its retail advances by only

15 per cent. This shows that only better expense management helped ICICI to post high

profit growth in the quarter ended March ’08.

The environment became more challenging in the June ’08 quarter as inflation continued

its double-digit run. The RBI has hiked repo rates and cash reserve ratio to combat

inflationary pressures. As a result, banks have increased their prime lending rates and

deposit rates. The increase in interest rates took a much heavier toll on ICICI bank as its

advances grew by just 13 per cent y-o-y of end ’08. Stagnant business and treasury losses

resulted in ICICI posting a 6 per cent y-o-y fall in profit for the June ’08 quarter.

However, HDFC bank registered a 47 per cent growth in its advances on a consolidated

basis over the same period.

Apart from stability in business and earnings growth, HDFC bank fares much better than

ICICI bank on other important parameters as well. HDFC bank’s return on assets has

always been higher than that of ICICI. The former’s net interest margin stood at 4.1 per

cent in the June ’08 quarter, compared to ICICI’s 2.4 per cent. This is because HDFC

Bank’s cost of deposits is the least in the industry, due to higher share of current account

and savings account (CASA) deposits in the total deposits. HDFC bank’s non performing

assets are also much lesser than that of ICICI bank. This shows that HDFC bank is a

quality player, while ICICI bank is a volume player. When volume growth or loan growth

reduces, ICICI bank’s performance also takes a hit.

Axis bank stands apart from its private sector competitors - ICICI bank and HDFC bank -

in one crucial respect. While the two other banks have envisaged retail banking as a key

of strategic emphasis – with the share of retail business (both on the funding and asset

sides) growing strongly year after year – the share of retail business, particularly retail

assets, has actually come down quite sharply in the case of Axis bank.

The numbers here are quite interesting. For ICICI bank, retail loans now (as of June

2007) account for as much as 70 per cent of the bank’s total loan book of Rs. 2,00,000

crore. For HDFC bank, retail assets are around 57 per cent (Rs. 28,000 crore) of the total

loans as of March 2007.

In the case of Axis bank, retail loans have declined from 30 per cent of the total loan

book of Rs. 25,800 crore in June 2006 to around 23 per cent of loan book of Rs. 41,280

crore (as of June 2007). Even over a longer period, while the overall asset growth for

Axis bank has been quite high and has matched that of other banks, retail exposures grew

at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis bank is part

of a deliberate business strategy, this could have significant implications (not necessarily

negative) for the overall future profitability of the business.

Despite the relatively slower growth of the retail book over a period of time and the

outright decline seen in the past year, the bank’s fundamentals are quite resilient. With

the high level of mid-corporate and wholesale corporate lending the bank has been doing,

one would have expected the net interest margins to have been under greater pressure.

The bank, though, appears to have insulated such pressures. Interest margins, while they

have declined from the 31.5 per cent seen in 2003-04, are still hovering close to the 3 per

cent mark. (The comparable margins for ICICI bank and HDFC bank are around 2.60 per

cent and 4 per cent respectively. The margins for ICICI bank are lower despite its much

larger share of the higher margin retail business, since funding costs are also higher).

HDFC bank is the second largest institution after ICICI in private sector but it is higher in

profits than ICICI bank.

Some customers are not satisfied with the facilities and services, which are provided by

HDFC bank. The customer wants to increase the number of ATMs and more branches of

HDFC bank in the rural as well as in the hilly areas like Kullu, Manali, Kashmir, Shimla

and many more. Customers are not satisfied with the non-maintenance charges on

different products.

The Axis Bank stock has outperformed its peers in the private sector with a 16.1 per cent

gain in its price over the past one year, when other private bank stocks have failed to

generate positive returns. A lower exposure to retail lending, where there are concerns

about credit quality, has helped the stocks’ performance.

At Rs 713, the stock trades at a price-book value of around 2.8 times, which is at a

discount to HDFC Bank but at a premium to most other private banks. Investors can

nevertheless buy the stock, given the growth momentum in the business.

Axis Bank reported strong financial results in FY-08 and continued its good performance

in the first quarter of this year, even as other private banks have turned in unimpressive

numbers.

This growth may be moderate, as growth in the loan book slows down on the corporate

and retail side with trading operations also likely to yield lower returns. However, this

may be offset by growth in fee income and rapid branch expansion in Tier-1, Tier-2

towns and the small and medium enterprise (SME) segment.

HDFC Bank is expecting a 35-per cent growth in its credit card portfolio this year despite

concerns over the impact of increasing interest rates. Out of 4.2 million, 70 per cent of

the cards are with the internal customers of the bank while the rest are in the open market

base. On the strategy of the bank in its credit card business, the official said it would be

an entry product after a savings account with the bank for many people.

HDFC Bank has reported a net profit of Rs 464.4 crore in the first quarter of the fiscal.

This is a 44 per cent increase against Rs 321 crore in the corresponding quarter of the

previous year.

Since the merger of Centurion Bank of Punjab (CBOP) and HDFC Bank became

effective from May 23, 2008, the financial figures of the merged entity are not

comparable to HDFC Bank’s stand-alone results last year.

The total balance sheet size has grown by 59.5 per cent from Rs 105,695 crore to Rs

1,68,590 crore. Centurion Bank of Punjab has contributed to 20 per cent of the balance

sheet. Net interest margin was at 4.1 per cent, against 4.2 per cent in the previous year.

CBOP’s NIM in the previous year was 3.6 per cent. The total income has grown by 60

per cent and net interest income has grown by 75 per cent.

Under the initiative, ICICI Bank, in collaboration with the MV Foundation, Kalinga

Institute of Social Sciences and Project Givelife-Shriram Social Welfare Trust, will

provide formal elementary education to 1,00,000 children in the age group of 6-14 years

in 2008-09.

RECOMMENDATION AND SUGGESTION

During the period of my extensive research I have come to know that there are few

weaknesses in the Banks. Customers have several problems regarding some products and

working style of the bank, which the company should overcome. These are:

1. In HDFC Bank, the Non-Maintenance charges on some of its products like

current account, etc. is very high. So the company should take decision to

minimize the Non-Maintenance charges.

2. HDFC Bank is not having much number of branches or ATMs. So the company

must have to increase the number of branches and ATMs by which they can easily

attract to the most of the customers.

3. HDFC Bank should try to follow the concept of KYC i.e. KNOW YOUR

CUSTOMER.

4. The customers face problems in Documentation, so it should overcome.

e.g. the passport indicates both the ID and address proof of the customer, which is

accepted by all other banks, but HDFC Bank considered it only for ID proof of the

customer but not for the address proof.

5. Advertisement and promotion could be through all existing media like print,

audio and visual.

6. Most of the customers are satisfied with the services and facilities provided by

the HDFC Bank but according to the view of some customers, the bank is not

providing services according to their commitments.

7. The charges of demand draft should be reduced and local cheques should be

provided on free of cost in all types of current accounts.

8. New schemes for customers should introduce time to time.

9. Complaints of customers must be handled efficiently and give them the better

facilities.

The merged entity being the country’s seventh largest bank may have a challenging phase

ahead, as it has to not only weather upward pressure on interest rates and rising yields,

but may also have to integrate Centurion Bank of Punjab

The Axis bank should plan to open up more Priority branches.

ICICI bank should focus on private banking, wealth management and advisory services,

and raising low-cost deposits within the retail segment this fiscal.

BIBLIOGRAPHY

MAGAZINES:

Indian Banking

Business World

JOURNALS:

Effect of MNC Banks on Nationalized Banks

Increasing competition between banks

WEBSITES:

www.hdfcbank.com

www.google.com

www.axisbank.com

www.icicibank.com

www.hindustantimes.com

QUESTIONNAIRE

Customer’s Name:

Address:

Contact No.:

1. Occupation

a) Student b) Housewife

c) Professional d) Govt. employee

e) Others

2. Income:

a) Below Rs. 5000 b) Rs. 5000 to Rs. 10000

c) Rs. 10000 to Rs.15000 d) Above 15000

3. Are you aware of any Bank named “HDFC Bank”?

a) Yes b) No c) No Opinion

4. In how many banks do you have accounts?

a) One b) Two

c) More than two d) None

5. What type of account you have in your Bank?

a) Saving Account b) Current account

c) Fixed Deposit c) Other

6. For how long have you been associated with any bank?

a) Less than 5 years b) 5-10 years

c) 10-15 years d) 15-20 years

e) Above 20 years

7. What new features & service attracts you to open account in any banks?

a) Cash Pick-up b) Mobile ATM

c) Net Banking d) Others

8. What would you prefer in banks?

a) Only Attractive features b) Better services

c) Both

9. Do you face any difficulty in opening any new account in a bank?

a) Yes b) No c) No Opinion

If yes, what type of difficulty?

_______________________________________________________

10. Are you aware about Zero Balance account?

a) Yes b) No c) No Opinion

11. Do you think that Zero balance Account schemes are economical for customers

and will attract them?

a) Yes b) No c) Can’t Say

12. Are you satisfied with the sales executive services?

a) Highly satisfied b) Satisfied

c) Dissatisfied d) No opinion

13. Do you like to suggest any changes in the banking services or otherwise?

_______________________________________________________

14. In which financial product do you like to invest your money?

a) Mutual Fund b) Fixed Deposit

c) Life Insurance d) Share