Synopsis of

Retail Finance of HDFC Bank

A Thesis

to be submitted by

Lata Sharma

For the award of the degree ofMaster of Business Administration (MBA)

Indira Gandhi National Open University

Contents:

1) Introduction

2) Objectives

3) Research Methodologya) Research Designb) Research methodologyc) Developing the Research pland) Collection of Datae) Sampling Planf) Sample Sizeg) Data Collection Instrument Development

4) Scope of the study

5) Limitations of the study

6) Bibliography

Rational Of the Study

1.1 THE TOPIC: RETAIL FINANCE OF BANK OR RETAIL BANKING

At HDFC Bank, I am assigning with the topic as “Retail Finance of Bank” for my project work.

The reason of selecting this topic is that to know how the Bank provides the financial services to customers.

Retail Finance facilitates our investments via rental financing. This means that a customer can, in a smooth and smart way, implementing his/her investment plans without expensive loans being negatively debited to the balance sheet and the liquidity. A rental fee is paid per month and is fully tax- deductible.

 Retail banking is a banking service that is geared primarily toward individual consumers. Retail banking is usually made available by commercial banks, as well as smaller community banks. Unlike wholesale banking, retail banking focuses strictly on consumer markets. Retail banking entities provide a wide range of personal banking services, including offering savings and checking accounts, bill paying services, as well as debit and credit cards. Through retail banking, consumers may also obtain mortgages and personal loans. Although retail banking is, for the most part, mass-market driven, many retail banking products may also extend to small and medium sized businesses. Today much of retail banking is streamlined electronically via Automated Teller Machines (ATMs), or through virtual retail banking known as online banking.

Examples of Retail Finance:

Current accounts Saving accounts Credit Cards Consumer Loan Mortgages

ORGANISATION PROFILE

2.1 INTRODUCTION OF THE COMPANY

HDFC Bank Ltd. is a major Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India.

HDFC Bank has put in place state-of-the-art technology to provide quality service to all their customers. This system has cross-branch functionalities which enable on on-line transfer of funds across all HDFC Bank locations.

Other Co-Operative, private and foreign banks could avail of their network and other products and services which have engineered to suit the needs of the banking sector.

Financial service providers

Their service offerings are customized to your needs, they are well-equipped to respond to your constantly changing and unique environment, and can provide a comprehensive banking solution, whatever your line of business. Select the category to which your organization belongs to know more about their services;

Financial Institutions

Institutions need a bank that uses its financial skills to streamline performance and build business. In the rapidly changing investment and regulatory climate, your needs can change suddenly and dramatically. While many banks continue to be product sellers, they focus on responding to the unique environments of each and every client, configuring our core capabilities to satisfy those needs within locations or sectors, they are committed to devoting the time, energy to expertise to help you achieve your changing requirements.

Collection Services

HDFC Bank's Collection services is aimed at ensuring quick realization of local and outstation cheques and providing the funds in a central collection account. This enables us to manage our funds flow position most effectively from a central location. This service can be availed with/without a current account with HDFC Bank.

HDFC Bank's comprehensive MIS includes :

Daily report of deposits made at various locations.Location wise reportCredit Forecast reportMonthly cumulative report - date wise / location wiseMonthly charging statementMonthly cheque return statementCustomised reports as per mutual agreement.

Collecting bankers to the new schemes (IPOs) by Mutual Funds :

HDFC Bank presently offers collection facilities at various locations across the country, for collection during the IPO. All these branches are networked, allowing quick and efficient reporting, reconciliation and funds transfer.

Subscriptions to the ongoing open-ended schemes of Mutual Funds:

HDFC Bank provides Mutual Funds collection facilities at all locations and if required, can also arrange for collection facilities at non-HDFC Bank locations through our correspondent bank network.

MIS provided to the Mutual funds:

Customized MIS reports to suit the requirements of Mutual Funds.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises.

For individuals, the company has a range accounts, investment, and pension scheme,

different types of loans and cards that assist the customers. The customers can choose the

suitable one from a range of products which will suit their life-stage and needs.

For organizations the company has a host of customized solutions that range from

Funded services, Non-funded services, Value addition services, Mutual fund etc. These

affordable plans apart from providing long term value to the employees help in enhancing

goodwill of the company.

The products of the company are categorized into various section which are follows:

Accounts & Deposits.

Loans.

Investment and Insurance

Forex and Payment services.

Cards.

Customer Center.

Objectives

It is said that an objective or goal well defined is half attained and a proper swing ensure in developing clear cut objective and assists in out lining its prerequisite.

Objectives serve as a torah. It lays down a well defined path between start and end that is goal. Also an objective well defined works as a prerequisite of all project report.

Below are the main objectives of this research work………….

1. To know about the retail finance and its type.2. To know how the Bank financed to the customer in the related scheme to finance.3. To know their formalities which are faced by the customer at the time of finance.4. Understand the Structure, nature and financed objectives of HDFC Bank.5. Serve this project work as guide for Bank, CPA, DSA.6. To find the solutions to problems that are faced by customers in Retail Finance. 7. To Develop new theory concepts and tools for study of unknown phenomenon8. To verify the existing facilities and to improve them to provide better benefits to

customers.9. Analyise the Basic Concept of Retail Finance.10. Understand how the Banks create a Provision of Financial services that can replace

conventional services for the ultimate goal of Retail Finance.11. To know how the Banking Institution execute transactions directly with consumers,

rather than corporations of other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

12. Understand the attractiveness and Size of Retail Finance, and develop a strategy to capitalize on the opportunity.

Research Methodology

Research Design

Research will be initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings to the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.

I will used mainly secondary data for implementing the project work like information from various newspapers, magazines, websites etc. It is an informal way of completing the dissertation work.

Research Methodology

Work flow is complete in an informal manner by which is it become profile for me to implement my main objective of doing that project that is to serve this project work as guide for Bank, CPA, DSA.

Developing the Research Plan

The data for this research project has been collected through self administration. Due to time limitation and other constraints direct personal interview method will be used. A structured questionnaire will framed as it less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaire open ended and closed ended both the type of questions will be used.

Collection of Data

1) Secondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company’s database and website of the company.

2) Primary Data: All the people from different profession were personally visited and interviewed. They were the main source of Primary Data. The method of collection of primary data was direct personal interview through a structured questionnaire.

Sampling Plan

Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know its characteristics.

Sampling Units: Different professional Charted Accountants, Tax Consultant, Lawyers, Business man, Professionals and House wives.

Sample Technique: Random Sampling Research Instrument: Structured Questionnaire. Contact Method: Personal Interview

Sample Size

My Sample size for this project will 50 respondents. Since it will not possible to cover the whole universe in the available time period, it will necessary for me to take a sample size of 50 respondents.

Data Collection Instrument Development

The mode of collection of data will be based on Survey Method and field activity. Primary data collection will base on personal interview. I will prepare the questionnaire according to the necessary of the data to be collected.

Scope of the Study

Scope of the research really wide enough to provide important information for each and every sector of the society and by creating and enthusiasm in general public towards financing. It plays an important role in socio-economic development of the country. In this way its area is not limited of finance filled only but it wide enough to cover the whole country’s development.

The Study of this project lies the fact that it provides a frame work of guidance to the people, who are interested in finance as it covers the information regarding the financing process, mitigants and filed investigation. By this project work the people can know the small points of the retail finance which are provided by HDFC Bank and they take is easily.

Mainly Scopes of this study are:

1) This study will clarify the doubtful facts, which are carried by people about retail banking and it corrects the misconceived ideas/ facts and it also seeks to find explanations to unexplained phenomenon.

2) This study helps us to know about the various types of Retail Finance as per the market needs.

3) This study helps the customers for financing their personal loans.4) This study consists of seeking answers to questions through opinion, imaginations,

beliefs or impression.

This study helps us to understand the formalities of Banks, Financial Institutions for providing the services to Customers

Limitations of the study

Limitations of the study are like a disclaimer for the researcher, it tells the reader what we could not investigate and what problems hindered us on the way of the study.

The study will be done by making best attempt but as nothing is perfect in the sense 100 % due to the presence of certain limitations like:

1. The staff of HDFC Bank will not provide so much time for giving the information.2. The staff of HDFC Bank will not might be disclose exact figures for the

investigation.3. Limited time duration for completing the project work.4. Data will be collected from the secondary sources (Websites, Newspaper, Magzines

etc.) and it has been observed that websites may differ from the actual data.5. Analyse the all facilities of Retail finance (eg: Current a/c, Saving a/c, Loans etc. )

will be very long procedure.6. Coordination with higher Authority of HDFC Bank will be difficult for getting the

more and deeply information about the Retail Finance of HDFC Bank.7. This study does not consist the market fluctuations in all its calculations.8. Secondary data may not be up to date and can be obsolete because of time lag.

Bibliography

1. Books Authors Research Methodology (2nd edition) C.R. Kothary Research Methodology S.P. Kasande

2. Newspapers Times Of India Financial Express

3. Websites

www.hdfcbank.com www.google.com www.finance.india.mart.com www.banknetindia.com