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PROJECT REPORT ON
FINANCIAL SERVICES OF PRIVATE BANKS
Submitted in partial fulfillment of requirement of Bachelor of
Business Administration (B.B.A.) General
BBA VI
thSEMESTER(MORNING)(A)
BATCH 2010-2013
STUDENT DECLARATION
This is to certify that the project report entitled “Financial Services Of Private Banks” submitted for the degree of BBA for Jagannath International Management School, Affiliated to GGSIPU. It‟s a bonafied research work carried by me, Anjali Gupta, a student of Jagannath International Management School.
Submitted To:Submitted By:
Ms. Rama Mittal Anjali Gupta
Assistant Professor 01714101710
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI
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STUDENT DECLARATION
This is to certify that the project report entitled “Financial Services of Private Banks” submitted for the degree of BBA for Jagannath International Management School, Affiliated to GGSIPU. It‟s a bonafied research work carried by me, Anjali Gupta, a student of Jagannath International Management School.
The assistance and help received during the course of investigation have been fully acknowledged.
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ACKNOWLEDGEMENT
I take this opportunity to thank all those who have been of help to me in the completion of this project.
I would like to appreciate the guidance and co-operation provided to me by our project guide Ms Rama Mittal in the completion of this project.
I am also grateful to Dr. Satish Seth (Director of BBA programme) and all the faculty members who have directly or indirectly helped me in preparing this project report.
Name Of The Student: Anjali Gupta
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CERTIFICATE OF COMPLETION
This is to certify that ANJALI GUPTA student of JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI OF BBA OF SIXTH SEMESTER has
completed this Project and prepared this report on “FINANCIAL SERVICES OF PRIVATE BANKS” under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.
Ms. Rama Mittal
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TABLE OF CONTENTS
Description
Page No.
Objective& Significance of the study
6
Company Profile of Yes Bank
7-12
Financial Services Offered By Yes Bank
13-16
Company Profile of HDFC Bank
17-28
Financial Services Offered By HDFC Bank
29-37
Research Methodology& Data Collection
38-40
Comparison Between HDFC and Yes Bank
41-42
Analysis & Findings
43-50
Limitations
51
Conclusion
52
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FINANCIAL SERVICES
Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States.
The term "financial services" became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge.
Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an
investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.
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Our range of products and services fall under the following three broad categories:
Infrastructure Banking Unit (IBU):
This unit provides a full range of advisory and credit linked products to clients with a special focus on the infrastructure sector. We meet the financial needs of clients operating in the Power, Telecom, Mining, Oil and Gas, Transportation and Wind Energy segments. We assist our clients to obtain funding for projects and also offer end- to-end advisory services from the planning stage to financial closure.
Structured and Project Finance Unit (SP & F):
The SP & F unit offers structured and project finance expertise to non-infrastructure clients. The areas of specialization include:
a. Securitization- We provide solutions that offer companies access to strategic sources of fundingby converting assets with probable and predictable cash flows into a source of capital. This alters the risk profile of the corporate, provides the necessary liquidity and offers investors an opportunity to gain higher yields while taking acceptable risks.
b. Structured Liability Products- The SP and F group, in conjunction with the Debt Capital Markets Group, offers liability products to a range of financial and retail clients in packaging, structuring and placing ABS, MBS, CLOs and CDOs to generate cost efficient liabilities for our clients.
c. Debt- Syndication- We provide debt solutions from local and international markets to both private and public sector institutions. Our strong relations with Borrowers, other banks and Institutional investors help our clients to fulfil their desired financing requirements.
d. Leverage Finance- This encompasses the origination, structuring, underwriting and participation through Funding in Leveraged Finance transactions, including leveraged Buy-Outs, Take-overs and General Acquisition Finance.
e. Asset and Tax based structures- Comprehensive solutions to provide tax benefits, finance for physical assets and advisory services for leases.
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Financial Restructuring Unit (FRU):
This unit provides specialized advisory services on financial restructuring, with expertise in the area of stressed assets. We offer our clients expert advice and creative product solutions to overcome balance sheet and financing contraints. The team also assists financially distressed companies in the creation and
implementation of comprehensive financial restructuring packages.
Infrastructure Banking and Project Finance:
Driven by strong credit appraisal skills, knowledge based approach and experienced human capital, this team has created an identity in the infrastructure financing space. The IBPF team has deep understanding of the international best practices in
infrastructure finance, due diligence and project structuring skills. The knowledge banking managers have proven project financing capabilities in several infrastructure sectors:
Power
Transportation
Telecom
Urban Infrastructure
The team had several marquee transactions to its credit, with some of the best names in the industry.
Structured Finance
The team leverages its strong regulatory and legal understanding to structure complex transactions, thus assisting clients in obtaining superior financial returns in a risk mitigated manner due to substantial knowledge arbitrage over the market. Landmark transactions in current financial year – Providing Microfinance Institutions (MFIs) access to the debit capital market.
Discounting of rental receivables
Securitization transaction
Agriculture loan pool buyouts
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Realty Banking
The team provides advisory and funding services like project conceptualization and structuring, JV partner identification, and raising/arranging financing in the
commercial and residential real estate sectors across diverse geographies and Special Economic Zones. The team has successfully completed several transactions involving some of the best names in the industry since inception.
Advisory and Syndications
The team provides comprehensive syndication services to clients of Yes Bank. With its proven domestic and international banking credentials, the team caters to all the financing requirements of corporate as well as specialized financing for acquisitions, asset purchases, sell downs and leveraged buyouts.
Yes Bank was ranked No. 21 in the Syndicated Loan Ranking (India) and No. 7 in the Syndicated Loan Ranking – Indian Rupee Loans by Thomson Reuters.
Project Equity
The Private Equity team is furthering Yes Bank‟s focus by developing specialist funds that will leverage the domain expertise that Yes Bank has built over the years.
Currently, it is co-sponsoring the South Asia Clean Energy Fund (SACEF) in collaboration with Global Environment Fund, USA (GEF). SACEF is a USD 200 million fund targeting investments in clean energy, clean technology and energy efficiency across India, Sri Lanka, Nepal, Bangladesh.
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OBJECTIVE OF THE STUDY
To know the various financial services of private banks. To know the method of banking.
To know the banking and financial terms used in day-to-day life and which plays an important role in our life.
SIGNIFICANCE OF THE STUDY
The study is useful for the student as he/ she gained knowledge about various financial services of bank, the working of the bank and also about the competitors of the bank that plays an important role in the making and implementation of the
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COMPANY PROFILE OF YES
BANK
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YES BANK
Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with the duo holding a collective financial stake of 27.16%.
YES BANK has received significant national and international recognitions which include Dr. Rana Kapoor, Founder, MD & CEO being recognized as the
Entrepreneurial Banker of the Decade (2001-2010) by Bombay Management
Association; Business Standard Banker of the Year - 2011; India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. YES BANK received certification for its 'Complaints Management System (ISO 10002:2004)' by the British Standard's Institution (BSI) as on August 25, 2010. The Bank was also awarded the ISO 27001:2005 Certification for its 'Information Security Management System' by BSI.
In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of the bank, to further accelerate its business growth in the retail banking space, with the objective to achieve by 2015, a balance sheet size of Rs.1,50,000 crore, deposits of 125,000 crore, advances of 100,000 crore, a pan India network of 900 branches and a human capital base 12750 by 2015.
YES BANK deals in the following 5 business lines-
Corporate and Institutional Banking
Commercial Banking
Branch Banking
Business Banking
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CORPORATE AND INSTITUTIONAL BANKING
The Corporate & Institutional Banking (C&IB) business at YES BANK provides financial and risk management solutions to clients.
COMERCIAL BANKING
With its sector-specific products and services under commercial banking YES BANK supports Emerging Corporates.
BRANCH BANKING
Business and Retail Banking
BUSINESS BANKING
YES Bank caters to all the service requirements of these SME's across various product segments like Cash Management, Payment Solutions, Direct Banking, Liabilities and Investment Management, Trade services and advisory.
RETAIL BANKING
Retail Banking caters to the banking & wealth management needs of individuals and small businesses. Customers are currently being served through a branch network, of over 360 branches across the country with 650+ ATMs, and Internet Banking facilities.
BUSINESS STRATEGY:
Knowledge Banking:
One of the strengths and differentiating features of Yes Bankis its knowledge banking approach that is the essence of all offerings to its
customers. Knowledge has been institutionalized as a key ingredient in all internal and external processes and utilized to create customized solutions for the clients‟ specific requirements.
Technology and Operations:
As a new generation Bank, Yes Bank has the15
calibrated decision to invest in the best IT system and practices in order to make its technology platform a strategic business tool for building a competitive advantage.
Responsible Banking:
Yes Bank has a vision to champion „Responsible Banking‟in India, where the concepts of Corporate Social Responsibility („CSR‟) and sustainability are integrated in its Business focus.
Human Capital:
At YES BANK, they look to offer comprehensive banking andfinancial solutions. Which is why, they have inducted top quality Human Capital across all our banking functions, including Corporate & Institutional Banking, Financial Markets, Investment Banking, Business & Transactional Banking and Retail Banking & Wealth Management.
INDIAN FINANCIAL INSTITUTIONS
IFI helps various relationship and product managers to offer a wide variety of products including Debt, Trade Finance, Guarantees, Treasury Services, Working Capital Finance, Cash Management & Transactional Services, Liabilities and Investment Management, and Liquidity Management Solutions to its customers.
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SWOT ANALYSIS
Strength:-
High Quality, Customer Centric, Service Driven, Private Indian Bank, Catering to the “Future Industries Of India”.
The Bank has adopted International Best Practices, the highest standards of service quality and operational excellence.
World-Class Team, based on Professional Recruitment Methodologies, and attract the best talent in the industry.
Building learning and development solutions that continuously enhance employee value, high performance culture.
Credible and transparent performance management process. Robust rewards and recognition strategy.
Strong technology, well capitalized. Total Deposits Rs1,61,694 million. Net Advances Rs124,031 million. Net NPA 0.33%.
Capital Adequacy Ratio 16.6%.
Weakness:-
Less wide network. Not in every state.
Less promotional activity. Unknown brand.
Opportunity:-
Very wide market.
Other activity (insurance, stock broking, mutual fund). Wide scope in rural area.
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Threat:-
Very high competition private bank market (ICICI bank, HDFC bank), in public sector (BOB, PNB).
Government policy.
Other better saving, investment opinion available (like insurance, mutual fund, real-estate, gold).
Capital market slow down. Rising rates.
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COMPANY PROFILE OF
HDFC BANK
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HDFC BANK
HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on December 2012, HDFC Bank has 2,776 branches and 10,490 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online real-time basis. As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5,167.07 crore (US$940.41 million), up 31.6% from the previous fiscal.
On March 14, 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high ranking officials and some
employees of HDFC bank willing to turn black money into white which is violation of Money Laundering Control Act. After this The government of India and Reserve Bank of India have ordered an inquiry.
HISTORY
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies.
Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs.
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1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.
BUSINESS FOCUS
HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading And Equity research.
WHOLESALE BANKING SERVICES
For customers from ongoleBlue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of the above services to its corporate customers, mutual funds, stock exchange members and banks.
RETAIL BANKING SERVICES
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (Visa Electron) and issues the Master Card Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is positioned in various net based B2C opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man power in Banking Industry HDFC Bank's retail services have become by and large the best in India and since the contribution to CASA i.e. total number of current and savings account of more than 50%, HDFC BANK has full potential to become India's No.1 Private Sector Bank.
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TREASURY
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai and as of March 31, 2012, the Bank‟s distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and 10000 ATMs in 996 cities as of October,2012.
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's AmericanDepository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign InstitutionalInvestors (FIIs) and the bank has about 570,000
shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Sharesare listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
TIMES BANK AMALGAMATION
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged withHDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved bythe shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisitionaddedsignificant value to HDFC Bank in terms of increased branch network, expanded geographicreach, enhanced
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customer base, skilled manpower and the opportunity to cross-sell and leveragealternative delivery channels.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977,the Corporation hasmaintained a consistent and healthy growth in its operations to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to different market segments and alsohas a large corporate client base for its housing related credit facilities. With its experience in thefinancial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
RATING
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high" .The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II
Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the
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rating "AAA /Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a Corporate Governanceand Value Creation (GVC) rating by the rating agency, The Credit Rating Information Servicesof India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicatesthat the bank's capability with respect to wealth creation for all its stakeholders while adoptingsound corporate governance practices is the highest.
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PRODUCT SCOPE
HDFC Bank offers a bunch of products and services to meet the every need of the people. Thecompany 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 thesuitable one from a range of products which will suit their life-stage and needs.For organizationsthe company has a host of customized solutions that range fromFunded services, Non-funded services, Value addition services, Mutual fund etc. Theseaffordable plans apart from providing long term value to the employees help in enhancinggoodwill of the company.The products of the company are categorized into various sections which are as follows:
Accounts and deposits.
Loans.
Investments and Insurance.
Forex and payment services.
Cards.
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PRODUCTS AND SERVICES AT GLANCE
Personal Banking Services:
A. Accounts and Deposits
Savings Account
Regular Savings Account
Savings Plus Account
Savings Max Account
Senior Citizens Account
No Frills Account
Institutional Savings Account
Payroll Salary Account
Classic Salary Account
Regular Salary Account
Premium Salary Account
Defence Salary Account
Kid's Advantage Account
Pension Saving Bank Account
Family Savings Account
Kisan No Frills Savings Account
Kisan Club Savings Account
Current Account
Plus Current Account
Trade Current Account
Premium Current Account
Regular Current Account
Apex Current Account
Max Current Account
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Fixed Account
Regular Fixed Deposit
Super Saver Account
Sweep-in Account
Recurring Deposit
Demat Account
Safe Deposit Locker
B. Loans
Personal Loans
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Overdraft against cars
Express loans
Loan against Securities
Loan against Property
Commercial Vehicle Finance
Working Capital Finance
Construction Equipment FinanceC. Investments and Insurance
Mutual Funds
Insurance
Bonds
Financial Planning27
Equities & Derivatives
Mudra Gold BarD. Forex Services
Trade Finance
Traveler‟s Cheques
Foreign Currency Cash
Foreign Currency Drafts
Foreign Currency Cheque Deposits
Foreign Currency Remittances
Forex Plus CardE. Payment Services
Net Safe
Prepaid Refill
Bill Pay
Direct Pay
Visa Money Transfer
E-Monies Electronic Funds Transfer
Excise and Service Tax PaymentF. Access Your Bank- One View
Insta Alerts
Mobile Banking
ATM
Phone Banking28
G. Cards
Silver Credit Card
Gold Credit Card
Woman‟s Gold Credit Card
Platinum Plus Credit Card
Titanium Credit Card
Value plus Credit Card
Health plus Credit Card
HDFC Bank Idea Silver Card
HDFC Bank Idea Gold CardWholesale Banking Services:
Funded Services
Non Funded Services
Value Added Services
Internet Banking
Clearing Sub-Membership
RTGS- Sub Membership
Fund Transfer
ATM Tie-Ups
Corporate Salary A/c
Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts
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NRI Banking Services:
Rupee Saving A/c
Rupee Current A/c
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Payment Services
Net Safe
Bill Pay
Insta Pay
Direct Pay
Visa Money
Online Donation
Remittances30
FINANCIAL SERVICES
Working Capital Finance:
Turnover Less Than Equal To Rs.5 Crores
HDFC Bank offers you a unique range of working capital facilities at your door-step. We offer affordable, convenient financial solutions which are of paramount
importance in running an efficient enterprise.
You can choose from the range of customized working capital loans for smooth business operations.
Types of Working Capital
Cash Credit / Overdraft
Term Loan (TL)
Letter of Credit (LC)
Bank Guarantee (BG)
Packing Credit (PC)
Post Shipment Finance
Bill Discounting
Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises, Retailers, Stockist, Distributors,Merchant Establishments,Departmental Stores, Supermarkets, Restaurants, Multi Brand Outlets etc.
Products Offered
Quickdraw - Working Capital Facilities for Traders / Retailers ranging from Rs.2 Lacs to Rs.10 lacs in the quickest possible time
Valuedraw - Working Capital Facilities from Rs.10 Lacs to Rs.25 lacs against wide range of collaterals adding more value to Business
Elitedraw - Take your business to Elite heights with our Working Capital Solutions for from Rs.25 lac onwards against wide range of collaterals.
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Working Capital Finance is financial assistance given to entities to help them run their business. There are many different types of Working Capital Finance .These are offered at all our branch locations.
Types of Working Capital
Cash Credit / Overdraft
Letter of Credit
Bank Guarantee
Buyers Credit
Short Term Finance
Packing Credit
Post Shipment Limits
Bill Discounting
Structured Cash Flow Financing
Working Capital For Contractors:
Features And Benefits
Uses commercial/construction equipment as security collateral
Quick processing of loan
Attractive rate of interest
Convenient facilities like Internet Banking and Phone Banking facilities
Multi-location banking
Products Offered
: Fund based Cash Credit facility
Overdraft facility
Working Capital demand loan
Bill/Invoice discounting Non Fund based
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Bank Guarantee (BG)
Letter of Credit (LC)
Commercial/ Construction Equipment Finance:
Features
Avail Commercial/ Construction Equipment Finance on an entire range of equipment at attractive interest rates
Choose among various types of loans that suit your business requirements There is no need to shop around anymore for loan options to purchase Commercial/ Construction equipment, Earth Moving, Material handling Equipment, Term loans, Working Capital requirements, Bank Gurantee or LC, that your business may require. Choose HDFC Bank's Commercial/Construction Equipment Loan and you will get the best terms and interest rates.
You may avail of a finance facility for your required equipment from any of your preferred manufacturers including JCB, Telcon, L&T Komatsu, Caterpillar, Volvo, Escorts, Case, Schwing Stetter, Hyundai, Terex, Ace, Liugong, Greaves, Sany, Putzmeister, Atlas Copco, Apollo and many more.
We offer:
New/Used Commercial/Construction Equipment Loans
Working Capital Finance – CC & OD facilities
Bank Guarantees/LCs
Bill Discounting / LC discounting
Inventory Funding /Trade advance/ CC /OD for Dealers
Payment Solution, Cash Management Services & Forex Solutions, etc.
Benefits
Receive up to 100 % finance for your Commercial/ Construction Equipment*
Take advantage of some of the best interest rates along with Speedy processing of loan.
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Up to 100% financing of Construction Equipment*
Attractive interest rates*
Up to 60 month tenure for loan*
Simpler documentation and quick processing
Reduced down payments
Customized EMI structure to suit your business needs
Working Capital Finance To Transporters:
Features And Benefits
Loan amount from Rs.25 lacs onwards
Taking Commercial Vehicle as security collateral
Internet Banking & Phone Banking Facilities
Multi-Location Banking
Easy documentation through the different process
Fast processing that helps at every level
Benefits of at par cheque facility
Products Offered:
Fund based
Cash Credit facility
Overdraft facility
Working Capital demand loan
Bill/Invoice discounting Non Fund based
Bank Guarantee
Letter of Credit
Term Loans:
Features
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Products offered at all branch locations
Benefits
Low-cost credit
Cash-flow financing
Term Loans are offered to businesses up to a tenure of 5 years for their expansion, capital expenditure and for fixed assets. HDFC Bank also offers Short Term Finance options that are structured to meet your individual needs.
Business Loans:
These funds can be used for business expansion, working capital, your child's education or home renovation
No collateral or guarantor surety required. A guarantor becomes a co-endorser and assumes liability in event of default.
Features
Unsecured Loan to self employed businessmen involved in Manufacturing, Trading and Service Industry.
Loan Amount up to Rs.15 Lakhs. (Up to Rs.30 Lakhs in selected locations).
Flexible repayment options ranging from 12 – 36 Months.
Hassle free processing.
Speedy loan approval.
Convenience of Service at your doorstep.
Benefits
The funds can be used for business expansion, working capital, child's education or home renovation.
No collateral/ Guarantor/ Security required.
Business Loan- Drop Line Overdraft
Get unsecured DOD upto Rs.5 lac.
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Features
Unsecured Drop-line Overdraft facility
Interest will be charged on utilisation
Convenience of service at your doorstep
Benefits
The funds can be used for business expansion, working capital, child's education or home renovation
No collateral/ guarantor/ security required
Loans For Professionals
Features
Hassle free processing
Speedy loan approval
Convenience of service at your doorstep
Benefits
The funds can be used for business expansion, renovating your
hospital/clinic/office, buying new medical equipment, working capital, child's education or home renovation
No collateral/ Guarantor/ Security required
Loans Against Assets:
Loan Against Securities
Get liquidity from your investments, without selling them
Get upto 80% loan against the value of your securities. Term loans on select securities offered too.
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Do you own a property? Why not avail a loan against it?
Lower EMI owing to long repayment tenure
Flexible product offering – Term Loan & Overdraft facility available
Residential and commercial – both types of properties accepted.
Loan Against Rental Receivables
Maximize the benefits of future rents on your commercial property today.
Get additional funds through expected rental cash flows for growing your business, funding personal requirements or adding to an existing loan.
Healthcare/ Medical Finance:
Features And Benefits
Customised and structured solutions
Tenures that range between 12 to 84 months
Competitive Solutions at competitive prices
Types Of Loans
Asset / Medical Equipment Finance
Infrastructure Loan
Balance Transfers of existing Term Loans or Working Capital
ME-OD Facility
Working Capital Finance
Commercial Vehicle Finance:
Features
Commercial Vehicle finance on entire range of vehicles starting from small 1.5 ton truck to heavy one to 49 tones GVW (Gross Vehicle Weight).
Choose amongst 4 types of loans that suit your business requirements.
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Finance up to 100 % for your commercial vehicles.
Take advantage of some of the best interest rates along with a customized EMI repayment structure.
Rural Loans:
Retail Agri Loans
Indian farmers can now swipe a Kisan Gold Card to use their loan for meeting agricultural and production expenses.
Avail any time banking and hassle free credit options.
Get an Accident Insurance Cover of Rs.2 lakh absolutely FREE with this card.
Tractor Loans
Choose HDFC Bank's Tractor Loans to purchase your tractor for farming or commercial purposes.
Get upto 90% finance on the tractor you want to buy.
Warehouse Receipts Loans
A Farmer can now avail loan against the commodities stored in the godown / warehouse.
Loans from Rs.1 Lakh onwards upto Rs.25 Lakhs, depending on your needs.
Farmer can hold the stock and get benefit of better pricers.
Agri Business Credit
Choose from a gamut of products under HDFC Bank's Agri Business Credit - for your Working Capital Finance for Agri Commodity Segment.
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research Methodology is the investigation of specific problem in detail. At first problem is defined carefully for conducting research. There should be a good research plan for conducting research. No research can be done without data collection. After all this analysis is made for getting solution for problem.
Defining the problem
Defining the sampling plan
Collection of data
Analysis and interpretation
Defining the problem
Defining the research problem is first necessary step for any research. This work should be done carefully.
Sampling plan
The sampling plan calls for three decisions.
A. Sampling unit: I have completed my survey in SOUTH DELHI.
B. Sample size: The selection of 20 respondents. The selection of the respondent was done on the basis of simple random sampling.
C. Contact methods: I have conducted the respondent through personal interviews.
Research Instrument
A close ended questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to be filled by various respondents.
Collecting the Information
After this, I have collected the information from the respondent with the help of questionnaire.
41 Analyse the Information
The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data and developed frequency distributions.
Thus the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were to redder impact of the study.
Presentation of Findings
This was the last stop of the survey.
TYPES OF DATA COLLECTION
1) Primary data: -
The primary data are those which are collected afresh and for the first time, and thus happen to be original in character.Methods of primary data:
Observation method. Interview method.
Through questionnaires. Through schedules.
2) Secondary data:-
The secondary data are those data which have already been collected by someone else and which have already been passed through the statistical process.Methods of secondary data:
Various publication of the central, state or local government. Books, magazines and newspaper.
Reports and publications of various association. Technical and trade journals.
Public records and historical documents etc.
I have chosen primary and secondary data to collect the information in my project report.
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COMPARISON BETWEEN HDFC BANK & YES BANK
ATTRIBUTES
HDFC BANK
YES BANK
Business Loans Business Loans, Loans against Deposit, Professional Loan, Project Finance, Term Finance, Trade Finance
Business Loans,Loans against Deposit,
Professional Loan, Project Finance, Term Finance, Trade Finance
Cards Corporate Credit Card, Credit Card, Debit Card, E Shop Card, Loyalty Cards, Meal Card, Travel Currency Card
Debit Card
Account Types Current Account, Demat Account, Fixed Deposit Account, Recurring Deposit Account, Saving Account
Current Account, Demat Account, Fixed Deposit Account, Recurring Deposit Account, Saving Account
Bank Type Private Private
Personal Loans Commercial Vehicle Loan, Consumer Goods Loan,
Educational Loan, Four Wheeler Loan, Home Improvement Loan, Housing Loan, Loan against Deposit, Loan against Gold, Loan against Property, Loan against Share, Loan against Vehicle, Personal Loan, Two Wheeler Loan
_
Business Hours Monday to Friday 9:30 a.m. to 4:00 p.m., Saturday 9:30 a.m. to 12:30 p.m. Monday to Saturday 10:00 a.m. to 4:30 p.m. Investment Products
Bonds, Equity, Fixed Deposit, Flexible Deposit, Insurance, Mutual Fund, Stock Invest
Equity, Fixed Deposit, Flexible Deposit, Stock Invest
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Services Card to Card Money Transfer, Currency Exchange, Demat Services, Direct Tax Payment, Electronic Clearing Service, Locker Facility, Mobile Phone Banking, Multi City Cheque Facility, Net Banking, Personal Tax Assistance and Investment, Portfolio Management, Travellers Cheque, Wealth Management Service
Demat Services, Mobile Phone Banking, Multi City Cheque Facility, Net Banking, Personal Tax Assistance and Investment, Portfolio Management, Wealth Management Service
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HDFC BANK
Q1. How do you rate HDFC Ltd. in the following services? a) Interest Rates
b) Repayment Period c) Customer Care d) Transaction Period
Interest Rates Repayment
Period Customer Care
Transaction Period Excellent 8 40 44 20 Very Good 60 56 16 52 Good 28 4 12 24 Poor 4 0 4 0 Very Poor 0 0 24 0 0 10 20 30 40 50 60 70 P e rc e nt a ge(% ) Services Offered by HDFC Excellent Very Good Good Poor Very Poor
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Q2.What is the reason of your loan transfer from HDFC Ltd.?
0 5 10 15 20 25 30 35 40 Higher Rate Of Interest Less Loan Amount Lack of Informatio n Longer Sanction Period Annual Rest Percentage(%) 40 16 16 8 20 Per cen tag e(%)
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Q3. In what terms / services do you find the other institutions (in which your loan is transferred) is better than us?
20%
24%
12%
44%
Better Services Customer Care Full Loan Amount Sanctioned48
QUESTIONNAIRE
Q1. How do you rate HDFC Ltd. in the following services? 1) Interest Rates
2) Repayment Period 3) Customer Care 4) Transaction Period
A) Excellent B) Very Good C) Good D) Poor
Q2. What is the reason of your loan transfer from HDFC Ltd.?
A) Higher Rate of Interest B) Less Loan Amount C) Lack of Information D) Longer Sanction Period E) Annual Rest
Q3. In what terms / services do you find the other institutions (in which your loan is (transferred) is better than us?
A) Better Services B) Customer Care
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YES BANK
1. Are you aware of all products or schemes offered by the banks?
a) YES b) NO
2. How do you find the service of the bank?
a) Good b) Ok
c) No comments
3
. Do you know about these products of the banking industry?a) Savings a/cyes/no
b) fixed deposits yes/no c) current a/c yes/no
40% 60% yes no 45% 50% 5% good ok no comments
50 d) de-mat a/c yes/no
e) credit cards yes/no f) insurances yes/no g) mutual funds yes/no h) loans yes/no
4.
Which of these products are you interested in?a) Savings a/c yes/no b) Fixed deposits yes/no c) Current a/c yes/no d) De-mat a/c yes/no e) credit card yes/no f) Insurances yes/no g) mutual funds yes/no h) Loans yes/no 15% 15% 5% 5% 5% 10% 40% 5% saving a/c fixed deposit current a/c demat a/c credit cards insurances mutual funds loans
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5. Which of the following innovative services of the bank would you like to go in for? a) Phone banking b) A T M c) Net banking d) Mobile banking e) Bill payment f) None of these g) All of these
LIMITATIONS
19% 24% 10% 2% 3% 14% 23% 5% saving a/c fixed deposit current a/c demat a/c credit cards insurances mutual funds loans 10% 60% 10% 10% 5% 5% phone banking ATM net banking mobilebanking none of these all of these52
1. General survey is more biased: General Survey is more biased because few institutions were not ready to give the exact financial details.
2. Less responsive communication: General Survey was found to beless responsive because of the reason that institutions &organizations did not want to respond to the questionnaire due to lack of time & non willingness.
3. Time consuming: The General Survey was time consuming because it take time to reach to different institutions & ask them certain related questions in there different areas.
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CONCLUSION
There is a stiff and tough competition in the private sector banking and especially cutthroat level at Retail Banking section. The services offered by various banking sections such as Credit Card, Debit Card, ATMs, Savings Banks Account, Current Account and so on enable me to find out what the customer of today thinks about the services the banks are providing and made a significant distinguish between what the performance of Yes Bank to that of the HDFC Bank and how prompt they are. Also, I learn how to make out and induce customers about the prospects of an organization upon which he is going to save his/ her deposits for a considerable period of time.
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BIBLIOGRAPHY
o Jain Nabhi Kumar, Manuals of SEBI – Guidelines, NabhiPublications, New Delhi, August 1996
o Kothari C.R., Research Methodology, New Delhi, Wishwa Prakashan,1990
o Kotler P., Marketing Management, Prentice Hall of India Private Limited, New Delhi, 1999
o R.P. RUSTAGI - Financial Management, Galgotia Publishing Company, 2000
