FINAL_PROJECT report on HSBC

PART-A

1. INDUSTRY PROFILE

The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely:

History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The descriptions along with a list of scheduled commercial banks are given on this page.

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth

process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of

India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

Major Banks in India

• ABN-AMRO Bank

• Abu Dhabi Commercial Bank

• Indian Overseas Bank • IndusInd Bank

• American Express Bank • Andhra Bank • Allahabad Bank • Bank of Baroda • Bank of India • Bank of Maharastra • Bank of Punjab • Bank of Rajasthan • Bank of Ceylon • BNP Paribas Bank • Canara Bank

• Catholic Syrian Bank • Central Bank of India • Centurion Bank

• China Trust Commercial Bank • Citi Bank

• City Union Bank • Corporation Bank

• Dena Bank

• Deutsche Bank

• Development Credit Bank • Dhanalakshmi Bank • Federal Bank

• HDFC Bank

• HSBC ICICI Bank

• IDBI Bank

• ING Vysya Bank

• Jammu & Kashmir Bank • JPMorgan Chase Bank • Karnataka Bank • Karur Vysya Bank • Laxmi Vilas Bank

• Oriental Bank of Commerce • Punjab National Bank • Punjab & Sind Bank • Scotia Bank

• South Indian Bank • Standard Chartered Bank • State Bank of India (SBI) • State Bank of Bikaner & Jaipur • State Bank of Hyderabad • State Bank of Indore • State Bank of Mysore • State Bank of Saurastra • State Bank of Travancore • Syndicate Bank

• Taib Bank

• UCO Bank

• Union Bank of India • United Bank of India • United Bank Of India • United Western Bank

• Indian Bank • UTI Bank

Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of information’s about Banking in India in this section.

The first bank in India to be given an ISO Certification Canara Bank The first bank in Northern India to get ISO 9002 certification for their

selected branches Punjab and Sind Bank The first Indian bank to have been started solely with Indian capital Punjab National Bank The first among the private sector banks in Kerala to become a

scheduled bank in 1946 under the RBI Act South Indian Bank India's oldest, largest and most successful commercial bank, offering

the widest possible range of domestic, international and NRI products and services, through its vast network in India and overseas

State Bank of India

India's second largest private sector bank and is now the largest

scheduled commercial bank in India The Federal Bank Limited Bank which started as private shareholders banks, mostly Europeans

shareholders Imperial Bank of India

The first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974

Bank of India, founded in 1906 in Mumbai The oldest Public Sector Bank in India having branches all over India

and serving the customers for the last 132 years Allahabad Bank The first Indian commercial bank which was wholly owned and

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.

PUBLIC SECTOR BANKS:

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932).

Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.

The following are the list of Public Sector Banks in India

• Allahabad Bank • Andhra Bank • Bank of Baroda • Bank of India • Bank of Maharastra • Canara Bank

• Central Bank of India • Corporation Bank • Dena Bank • Indian Bank

• Indian Overseas Bank • Oriental Bank of Commerce • Punjab & Sind Bank

• Punjab National Bank • Syndicate Bank • UCO Bank

• Union Bank of India • United Bank of India • Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

• State Bank of India

○ State Bank of Bikaner & Jaipur ○ State Bank of Hyderabad

○ State Bank of Indore ○ State Bank of Mysore

○ State Bank of Saurastra ○ State Bank of Travancore

PRIVATE SECTOR BANKS:

Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With

successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account.

List of Private Banks in India

• Bank of Punjab • Bank of Rajasthan • Catholic Syrian Bank • Centurion Bank • City Union Bank • Dhanalakshmi Bank • Development Credit Bank • Federal Bank

• HDFC Bank • ICICI Bank • IDBI Bank • IndusInd Bank • ING Vysya Bank

• Jammu & Kashmir Bank • Karnataka Bank

• Karur Vysya Bank • Laxmi Vilas Bank • South Indian Bank • United Western Bank

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth.

The country’s middle class accounts for over 320 million People. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation.“Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's banking group and author of the report. “The banking industry should focus on

having a small number of large players that can compete globally rather than having a large number of fragmented players."

2. COMPANY PROFILE

The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China.

The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later.

Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes.

From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated in the management of British government accounts in China, Japan, Penang and Singapore. In 1874 the bank handled China’s first public loan and thereafter issued most of China’s public loans.

What is HSBC?

Headquarters in London, HSBC is one of the largest banking & financial services organization in the world.

HSBC’s international network comprises over 9500 offices in 76 countries & territories in Europe, the Asia-Pacific region, the Americas, the Middle East & Africa.

With listings on the London, Hongkong, New York, Paris & Bermuda stock exchange shares in HSBC holdings places are held by nearly 200,000 shareholders in some 100 countries & territories. The shares are traded on the New York stock exchange in the form of American Depository Receipts.

Through an international network linked by advertisement techniques, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services

like-1. Personal financial services 2. Commercial Banking 3. Corporate Banking 4. Investment Banking

A) BACKGROUND AND INCEPTION

THE HSBC GROUP IN INDIA

Year of commencement of operations in India

The Mercantile Bank of India, China & London : 1853

The Hong Kong & Shanghai Banking Corporation Limited (HBAP) : 1867

HSBC Securities & Capital Markets (India) Private Limited (HBAP) : 1995 HSBC Electronic Data Processing India Private Limited (HDPI) : 2000

HSBC Primary Dealership (India) Private Limited (HCPD) : 2001

HSBC Professional Services (India) Private Limited (HPSI) : 2001

HSBC Software Development (India) Private Limited (HSDI) : 2002

HSBC Insurance Brokers (India) Private Limited (ININ) : 2003 HSBC Operations & processing enterprise (India) Pvt. Ltd. (HOPE) : 2003 Canara HSBC Oriental bank of commerce Life insurance co. Ltd. : 2008

HSBC Group Entities in India

Commercial Banking

The Hongkong and Shanghai Banking Corporation Limited (HSBC) Personal Banking

HSBC offers a wide range of personal financial services, including personal lending and deposit products, through its branch network in Ahmedabad, Bangalore, Chennai, Chandigarh, Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana, Mumbai, New Delhi, Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered branch-wide are international Gold and Classic credit cards from VISA and MasterCard and debit cards from Visa. Customers have access to 24-hour banking services through an extensive network of automated teller machines (ATMs), an integrated Call Centre, and internet banking - online@hsbc.

Non Resident Indian Banking

HSBC's Non Resident Indian Banking (NRI) centres located in Asia-Pacific, the Middle East, Europe and North America, together with HSBC's offices worldwide, provide the international Indian Diaspora access to a range of products and services. These include NRI related investment (both international and domestic), transactional and deposit products, together with a full range of personal and private banking products in India and overseas. Internet banking also provides easy access to HSBC's services.

Financial Planning Services

Services include investment and custodian management and access to stock broking and insurance services, which are offered to resident as well as non-resident Indians.

Corporate Banking

HSBC has well-established, long-term corporate banking relationships with large domestic Indian corporations and foreign multinationals operating in India. Services include term

and working capital finance, trade facilities, corporate deposits, syndications, payments and cash management services and factoring.

Business Banking

HSBC's Extra Mile Business Banking offers two types of account to small and medium-sized businesses - The Business Account and the BusinessVantage Account. Services include Business Phone Banking, Business Doorstep Banking and Multi Branch Business Banking.

Payments and Cash Management

HSBC provides integrated domestic and regional transaction support to corporate clients through a sophisticated range of cash management solutions, including collection and payment services and integration with customer back-end systems. Operations and client services are ISO 9001 certified. Hexagon, the HSBC Group's dedicated electronic banking service allows users to perform financial transactions, obtain international financial markets information, and review details of their domestic and international accounts, from anywhere in the world, 24 hours a day.

Trade (international and domestic) and Factoring Services

A wide range of solutions tailored to meet customer's requirements for both domestic and international businesses is offered. HSBC is also one of the leading banks involved in the bullion business through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi and is supported by the Group's global expertise in the precious metal business. HSBC is the leading provider of trade services in India and its trade centres are ISO 9002 certified.

Institutional Banking

Working closely with Group offices in India and overseas, trade services, payments and cash management, treasury and capital markets, custody and clearing, and correspondent and electronic banking activities are offered to banks, financial institutions, securities houses, insurance companies, asset management companies and other non-banking companies, non government and development organisations operating in India.

Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the major metropolitan centres across the country. It provides a comprehensive range of products which include - foreign exchange, money market and fixed income products and derivatives in both rupees and major currencies.

Custody and Clearing

The leading custodian in Asia, HSBC's custody and clearing services are available in 28 markets in Asia-Pacific and the Middle East. With experienced staff and the latest technology, HSBC is the premier provider of sub-custodian and clearing services to foreign institutional investors (FIIs) in India. HSBC clients include the domestic fund management sector in both the retail and institutional segments. Institutional Fund Services launched by the bank offers a comprehensive suite of products to domestic mutual funds and insurance companies ranging from custody, fund administration services, unit distribution and Cash Management Services.

➢

Technology

The HSBC Group develops and applies advanced technology to the efficient and convenient delivery of banking and related financial services. In India, the Group provides:

• Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour Phone Banking.

• Trade and Corporate Banking services with real-time access to a centralised information database

• Instantaneous inter-city transactions through online connections between all branches

• A state-of-the-art treasury dealing system

• A sophisticated card system supporting debit and credit cards, domestic and international VISA, MasterCard, and co-branded cards

• A dedicated acquiring system for both MasterCard and Visa transactions

• online@hsbc, HSBC's internet banking service, provides customers with an integrated and secure platform to access their accounts.

➢

Asset Management

HSBC Asset Management (India) Private Limited provides a comprehensive range of investment management solutions to a diverse client base and is committed for aiming to deliver consistent investment performance, world-class service and a broad range of solutions for all types of investors. Our range of offerings in India comes under two broad categories Mutual Fund and Portfolio Management Services.

➢

HSBC Global Resourcing

HSBC Global Resourcing is the largest, captive, banking and financial services off shoring organization in the world. A vital part of the HSBC Group's global strategy, Global Resourcing plays a key role in delivering shareholder value and seamlessly integrates and helps the Group remain competitive in the ever changing world of banking and finance. Global Resourcing is present in India as HSBC Electronic Data Processing India Pvt. Ltd., and operates out of 7 Group Service Centres (GSC) in Hyderabad, Bangalore, Kolkata, and Vishakhapatnam.

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Insurance

HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance Regulatory Development Authority (IRDA) to operate as a composite insurance broking company, which will function as a direct and a reinsurance broker.

➢

Data Processing

HSBC Operations and Processing Enterprise (India) Private Limited, through two centres in Mumbai and Chennai, provides operational processing services for HSBC offices in India.

B) NATURE OF BUSINESS CARRIED

The HSBC Group is one of the largest banking and financial services organisations in the world, with well-established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

C) VISION, MISSION AND QUALITY POLICY

Vision:

As a member of HSBC family which has been serving its millions of customers worldwide since 1865, to take our place among Turkey’s most powerful, most profitable, most admired leader banks.

Mission : Having regard to ethical values; to meet its customers financial needs in the fastest and most appropriate way, to continue innovative works in order to achieve: human resource with superior qualities, technological infrastructure and service packages.

Our Values:

1) To exceed customer expectations in service quality.

2) To be a pioneer in the implementation of technologies those create distinction for its customers, employees and shareholders.

3) To keep its reliability at the utmost level with the contribution of its strong capital structure and liquid assets.

4) To make a positive contribution to the community

5) To respect meritocracy during hiring processes, improving knowledge and skills of its employees, creating the mostly preferred work environment.

D) PRODUCTS AND SERVICES PROFILE

HSBC IRS Products

• Paper Collection • Electronic Collections

• Receivables Management System

➢ Paper Collection

IRS is structured to offer quick realisation of your instruments, local or outstation. The proceeds of all cheques deposited with HSBC can be concentrated into a designated central account at any of our branches. Consequently you have better control on your cash

flows and the reconciliation and monitoring requirements associated with multiple accounts are eliminated. Information on these collections is delivered to you through HSBCnet.

IRS further delivers a variety of collection reports that can be used for automating the reconciliation process at your end.

➢ Electronic Collections

IRS helps your business process improvement objectives with a comprehensive array of electronic collections, including

• Domestic electronic funds transfer such as RTGS, NEFT, ECS • International wire transfer

• Direct debit

Receivables data accompanying these transactions is captured and delivered to you electronically to support your customer order fulfillment, credit management and reconciliation process.

➢ Receivables Management System

Built with advanced modular technology, our receivables management system brings together all the IRS components. Its automated reconciliation and information management modules are fully integrated with the collections and processing features of IRS. As the backbone of IRS, our receivables management system:

• Consolidates receivables information across electronic and paper collections

• Automates accounts receivables reconciliation using your pre-defined matching parameters for funds received against various invoices

• Delivers collection reports structured to meet your specified needs • Provides online transaction enquiry

HSBC Premier Products

• Premier Checking

• Premier Credit Card Privileges and Rewards • Premier Wealth Management1

• Premier Mortgage and Home Equity HSBC Premier Services

• HSBC ATMs worldwide

• Global View - monitor balances of your worldwide HSBC accounts online in one convenient place with Global View2_{. Launch the demo to learn more.}

• Global Transfers -free instant fund transfers online between your worldwide HSBC accounts, whichever country they are in2

• Dedicated HSBC call centers will connect you to a qualified person who speaks your language and can give you immediate assistance 24/7.

• As an HSBC Premier client, you have access to a Premier Relationship Manager who you can contact for guidance, support and access to all that HSBC has to offer.

• Receive personalized attention and global insights from your Relationship Manager, no matter where in the world you are.

• Connect with a Relationship Manager at any one of our Premier Centers worldwide3

Product

IRS

Services

Global Trade Solutions: Get the edge in the competitive international market Cash Management: Manage your cash flow effectively.

Factoring Solutions: Financing that keeps up with your business growth.

Business Current Accounts: Give your business the superior service advantage. Business Loans & Overdrafts: Propel your business to further growth.

Foreign Exchange Services: Gain from our 24-hour global coverage and knowledge of local markets.

E) AREA OF OPERATION

:

·

HSBC Bank Australia

·

HSBC Trustee (CI), Ltd.,

South America :

·

HSBC Bank Brazil SA, Banco Multiplo

·

HSBC Bank Argentina SA

·

HSBC Bank Peru SA

·

HSBC Bank Chile SA

·

HSBC Bank Uruguay SA

·

HSBC Bank Paraguay SA

·

HSBC Bank Colombia SA

·

HSBC Armenia

·

HSBC Bangladesh

·

HSBC Brunei

·

HSBC Bank India

·

HSBC Indonesia

·

HSBC Sri Lanka

·

HSBC Pakistan

Asia Pacific :

·

The Hongkong and Shanghai Banking Corporation Ltd

·

Hang Seng Bank Ltd

·

HSBC Bank (China) Company Ltd

·

HSBC Bank Malaysia Berhad

·

HSBC Algeria

·

HSBC Global Assets Management Austria

·

HSBC plc, Belgium

HSBC Bank plc

·

HSBC Bank Armenia

·

HSBC France

·

HSBC Trinkaus und

Burkhardt

AG

·

HSBC Private Bank (UK) Ltd

·

HSBC Bank Polska S.A.

·

HSBC Bank A.Ş.

·

HSBC Bank Malta Plc

·

HSBC Bank Kazakhstan

·

HSBC Bank Middle East Ltd

·

HSBC Bank Egypt SAE

·

The Saudi British Bank

·

HSBC Bank Kuwait

·

HSBC Bahrain

·

The Hongkong and

Sanghai

Banking Corporation

Ltd.,Bahamas

·

HSBC Bermuda

·

HSBC International Trustee (BVI) Ltd.

·

HSBC Bank Cayman

·

HSBC Bank USA Inc

·

HSBC Finance Corporation

·

HSBC Bank Canada

·

HSBC Mexico SA

f) OWNERSHIP PATTERN

Name

Designation

Ajay Dua Director

Hardeep Singh Chairman / Chair Person

Kashmira Mathew Company Secretary

Kashmira Mathew Secretary

Louisa Cheang Additional Director

Manasije Mishra Managing Director & CEO

Manasije Mishra CEO

Manasije Mishra Managing Director & CEO

Sonal Dave Director

Shareholding pattern - HSBC InvestDirect (India) Ltd.

Holder's Name No of Shares % Share Holding

Promoters 37317464 52.72% ForeignPromoter 32071450 45.31% GeneralPublic 660546 0.93% OtherCompanies 563990 0.80% NBanksMutualFunds 110253 0.16% ForeignInstitutions 35657 0.05% Others 25212 0.04% ForeignNRI 4901 0.01% FinancialInstitutions 300 0.00%

g ) COMPETITORS INFORMATION

• Royal Bank of Scotland

Other competitors

➢ Catholic Syrian Bank ➢ Centurion Bank ➢ City Union Bank

➢ Development Credit Bank ➢ Federal Bank

➢ HDFC Bank

➢ ING Vysya Bank

➢ ICICI Bank IndusInd Bank

h

) INFRASTRUCTURE FACILITY

The bank provides statutory facilities to its employees which are as follows: Canteen:

There is a subsidized canteen in the bank which supplies tea, snacks and meals coupons are provided to the employees and the canteen works round the clock.

First Aid:

It is well equipped with all the medical equipments required for first aid. An ambulance is also provided for employees during emergency.

est room and Lunch room: The bank has provided a rest and lunch room for its workers.

Other facilities provided by the bank:

Individual lockers are provided for each worker in their respective dept to keep their tools and other belonging.

• Open air Auditorium There is a huge open air auditorium, which can accommodate 5000 peoples. Various cultural activities are conducted occasionally over here and feature films are screened occasionally.

• Guest House

The guest house is at amidst of lush green gardens, which provides suit for management staff.

i ) ACHIEVEMENTS AND AWARDS

Awards Won in 2011

➢ In February 2011 Euroweek Syndicated Loan and Leveraged Finance Asia

Awards 2010 Awards Won in 2010

➢ HSBC won the innovation in recruitment-Employer Branding award at the 4th

Employer Branding Awards, 2009-10 ceremony.

➢ HSBC was awarded with the first Capgemeni Leadership Award for innovation by

Capgemini, at the Nasscom-Capgemini Global Leadership Awards.

➢ HSBC Asset Management India Private Limited(AMIN).

➢ HSBC MIP-Savings was recently rated CPR~1 by CRISIL for its 2 year performance for the period ended Mar 2010 in the open end aggressive MIP category.

➢ Past performance may or may not be sustained in the future and is no guarantee of future results.

Awards Won in 2009

➢ HSBC won the BML Munjal Award for Excellence in learning and development

for the year 2009 in the private sector category.

➢ HSBC India was declared the winner of the Golden Peacock National Training Award for 2009,an award that recognizes organizations that show real initiative and commitment to development of their employees

➢ HSBC was ranked second Best Bank in the Hewitt Best Employers Study of 2009

➢ HSBC has been ranked second amongst the Financial Institutions and 22nd _amongst

all companies in an Outlook business Hewitt Associations Study.

➢ HSBC won the prestigious Green Globe Award in the business enterprise category for its commitment to environment sustainability.

Commercial banking

➢ HSBC was the proud recipient of two awards at the first ever Dun & Brandstreet

Bank Awards-for Best Asset Quality-Foreign Banks and Best SME Financing-Foreign Banks.

HSBC Securities Services

➢ HSBC was adjusted as the Best Securities Services Provider in India by Asian Investor in the Asian Investor Service Provider Awards, 2009.

➢ Top Rated category in the Global Custodian Agent Banks Survey, for the 8th year

in a row, in 2009. Marketing

➢ INM Marketing won Gold at the National Media Abbys 2009 for Best Use of

internet and new media for its compaign ‘Wimbledon Fever in your inbox’. HSBC Technology Services

➢ Won IQPC award under ‘Best Innovative Six Sigma Project’ at the Prestigious Asian Six Sigma Awards2009, Singapore.

➢ SCMHRD Lean Six Sigma Awards 2009, Pune.

➢ Winner of the ‘Bombay Chamber of Commerce Civic Awards’ under the Art, Culture & Heritage category-all credit to the GCR and ADMN team

➢ HSBC INM branch at Vadodara was awarded with USGBC LEED ‘Platinum’

rating certificate in the Commercial Interiors Category in Dec 2009.This is the highest rating that any building can achieve in LEED certification.

➢ HSBC Asset Management India Private Limited (AMIN).

➢ ICRA Mutual Fund Award 2009-HSBC Monthly Income Plan-Saving Plan has

been ranked a ‘five star fund’indicating performance among the top 10%in the category of ‘open ended marginal equity’ for three-year period ending 31 December 2008.

➢ HSBC Equity Fund was ranked 5 star fund by Value Research Online in March

2009.

j ) WORKFLOW MODEL

:

APPLICATION

MINIMUM CREDIT PARAMETERS CHECKS LEAD SHEET COMPLETION

ORIGINAL DOCUMENTS VERIFIED

FIELD VERIFICATION AS PER VERIFICATION STRATEGY

REFERENCE CHECKS

TELEPHONIC VERIFICATION

FILE SENT FOR APPROVAL

AGREEMENT AND PDCs TO BE SIGNED BY THE CUSTOMER

SCRUTINIZED AND SENT TO OPERATIONS

CHEQUE IS PRINTED AND CASE IS DISBURSED

k

) FUTURE GROWTH AND PROSPECTS:

Emerging markets will continue to outperform developed economies this year, but policy-makers will continue to face the challenge of rising inflationary pressure, said Fred Neumann, managing director and co-chief of Asian Economics Research for the Hong Kong and Shanghai Bank (HSBC).

He also remains optimistic about Thai economy, saying political uncertainty is only a short-term issue.

"Emerging markets re-accelerated in the fourth quarter last year," Neumann said, referring to the HSBC emerging markets index (EMI) quarterly weighted composite indicators based on 20 manufacturing and service sectors derived from the Purchasing Managers

Index (PMIs) surveys conducted across 16 emerging markets. The EMI rose to 55.7 in the fourth quarter versus 54.2 in the third quarter, he said in a teleconference from Hong Kong.

Manufacturing has rebounded especially in China, India, Israel, Poland and Turkey, he explained, adding that India had recorded strongest growth in new exports in the fourth quarter, while China's new exports growth was modest but fastest in three quarters.

Neumann said domestic demand in emerging market has been driving growth. Domestic demand outperformed exports last year, and two of the top 10 markets showing export growth were the emerging markets of India and Czech Republic, which reflected continued weak demand from the West.

This demonstrates a de-coupling from the West as trade among emerging markets has increased, and if more trade barriers were dismantled, trade between these markets would even rise higher, Neumann added.

"I do believe the de-coupling will remain, growth of spending by Chinese consumers is higher than US consumers," he said in response to a question on whether de-coupling would remain in the next few years. However, he warned that the biggest risk was inflationary pressure. If policy-makers are unable to tame inflation to prevent overheating of their economies, it could lead to the bursting of the asset bubble. Then emerging economies would become vulnerable and suffer a slump for many years.

Yet, Neumann said he did not think inflation would spiral upward as it did in 2008, when crude oil prices exceeded $100 a barrel, but that the increase would be gradual.

He said he expected central banks in Asia to tighten monetary policy rates in order tame inflation. Neumann also said he did not believe that Bank of Thailand would raise the policy rate in the next meeting as it could afford a bit of inflationary pressure in order to let the economy grow. He is also opti?mistic about the future of the Thai economy.

"Political headwinds are a short-term problem and the fundamentals of Thai economy is very sound," Neumann said.

Thailand is expected to be among the top 30 largest economies in the world, led by China, in 2050, according to HSBC's long-term projections. Thailand should climb by seven places and be ranked at 22 among 30. The size of the economy is expected to be worth $856 billion in 2050 and per capita income should rise to $11,674 from $2,744 in 2010.

3. MCKENSY’S 7S FRAME WORK

:

There are many management approaches which talk about managing the things and Operation in an organization. One of the famous modes to analyze the pattern of management is Mc 7’s frame work. The 7’s model is better known as Mc Kinsey’s, this is because the two persons who developed this module. Tompetus & Robert waterman has been consultant at Mc Kinsey’s and co.

They described that an organization is not that just structured but consist of 7’s elements. This can be distinguished into so called Hard S’s & Soft S’s. The model is very much helpful in viewing the interrelationship of strategy formation and interpretation it focus manger attention to a verification of activities. That may effect the implementation of any strategy as the model originally developed as a way of thinking more broadly about the problem of organizing effectively. It is a judge tool for the implementation of the strategy.

The 7’s model is mainly distinguished into two types. 1. Hard S model

2. Soft S model

The hardest elements are visible and easy to identify as they can be found in a strategy elements, corporate plans, organization charts and other documentation of the company. They are

1. Strategy 2. System 3. Structure

The soft element involves difficulty in describing there capabilities, values, and elements of corporate culture. They are.

1. Style 2. Staff 3. Skills

These Mc Kenzy’s framework is used in this research study to study about HSBC BANK.

➢ STRUCTURE:

The head office of HSBC bank is CHENNAI HSBC bank has various branches in & around India. HSBC has various branches in Delhi, Calcutta, Chennai, Bangalore etc covering various networks.HSBC has the client driven channel provides callers with easy access to credit cards, banking as well as demat &clients can enquire about the products offering of HSBC.

HUMAN RESOURCE DEPARTMENT Functions:

1. An effective utilization of human resource in the achievement of organization goals.

2. Maintain a desirable working relationship among all the members of the organization.

3. Generate maximum individual and group development within in the organization. 4. Develops the human resource and their knowledge, skills and potentialities. 5. Creating the right attitude among the employees through effective motivation.

``

Department of Management Studies, M.S.Engineering College.

Bangalore Page 31

Share Holders

Board members

Chief Executive officer

Risk Mgmt Financial Control HTS HRM Commercial banking Mktng Internal Audit Lean Mgmt unit PFS Credit card Operation s Finance Treasury admin IT OPNS Software delivery Change Delivery Procurement Recruitment and Selection Pay and Compensation Training and Development Trade and Service Payments and Cash Global banking and Markets Dealing Corporate and institutional Dept. Marketin g

Organizational Structure of HSBC Bank

MARKETING DEPARTMENT Functions:

1. Increase sales volume.

2. Carry out the promotional activities. 3. Increase profitability.

4. Train and motivate the work force.

5. Motivates distributor, retailers, and other middlemen. 6. Carry out sales promotion activities.

FINANCE DEPARTMENT Functions:

1. To ascertain the expenses incurred in producing a product.

2. To find the cost per unit that is by taking into the account of the total cost and production of a particular product.

Cash Counter Contact Center and Front End Collection

Back End Collections

Payments Bank operations ATM &Merchant acquiring

Facility documentation Processing Account Maintainance Mailing/scanning

3. To allocate the costs incurred into 3 main categories namely factory, office, and selling overhead.

4. To compare budged cost with actual cost and calculate the variance if any.

5. To advice the production department to decrease the cost, minimize wastage and idle time.

6. To implement cost control technique and methods.

➢ STYLE :

Style refers to the employee’s shared & common ways of thinking & behaving unwritten norms of behavior & thought. Style also refers to the way management behaves &collectively spends its time to achieve organizational goals.

There are various ways of leadership style which can be adopted.

Sharing leadership is key to the white stag philosophy of leadership, because overtly promotes the distribution of the function of the leader among the group.

An individual style in interacting with others is an outward sign of the substance within experience, we can really tell a lot about people’s capabilities by looking at them but it is better to watch them in action.

Leadership style in HSBCBANK:

It has been observed in HSBC BANK that the behavior of superior towards the subordinate is much decent & pleasant. The superior motivate the fresher who are working under them. The superior tells the subordinate what exactly he has to do, the objective of the work is clearly defined to them, any difficulty in accomplishing the task the superior can be consulted & he/she guides in a proper direction.

It is also observed that while speaking to their subordinate, superiors move very friendly & affectionately & moreover the views of subordinates are considered for decision making. As a fresher I observed that the superiors respect our efficiency & they view us an important participant in the objectives of the company as well as relationship with subordinates. The superior in charge periodically conducts meetings with their subordinates & set the tasks ahead, periodically seminars are conducted to get the new updated information. SO THE LEADERSHIP STYLE FOLLOWED IN HSBC BANK IS PARTICIPATIVE STYLE.

➢ STRATERGY :

The word strategy has been derived from Greek word “Strategos” which means general. Strategy is the pattern of objectives, purposes, or goals stated in such a way as to define what business the company is in or are to be in & the kind of company it is or it is to be strategy is a systematic action & allocation of resources to achieve company aims.

Strategy of HSBC BANK: HSBC BANK seeks to perform its role in the social sector through a dedication, not a profit group they are the social initiative group. The strategies include the following initiatives:

 This is in recognition of the fact that resources being limited, the efficient use is imperative if the maximum number is to be benefited.

 Cost effectiveness

 The initiative drawn must be scalable; scalability implies the ability to draw upon

the important elements, it should be possible to do so at national level, even if the program itself is not directly scalable it should be possible to take away significant lessons from it in order to enrich work in other settings.

 In order to achieve the achieve the desired objectives or goals in there focus areas,

the SIG (SOCIAL INTIATIVE GROUP) tends to support reasonably larged sized initiatives so that issues such as cost effectiveness, scalability & impact assessment can be dealt directly

➢ SYSTEMS :

In McKinsey’s 7s model, systems means any procedures & processes such as manufacturing processes, management information system, budgeting & control processes. In HSBC BANK the branch managers, relationship managers, & business development executives are periodically reviewed of their performance and each branches are ranked as per their branch performance & based on performance the branches ranked. Management information system: This is an interlocking frame work of hardware of people and procedures. The strategic day to day running of the business repairs the speedy collection and flexible interval of information. This help in day to day activities of trading for buying & selling of shares.

Are the values shared by the members of an organization, shared values means that the employees share the same guiding values. Values are things that you would strive for even if they were demonstrably not profitable. Values act as an organization’s role in the larger community in which it functions.

The organizations main values are stated in its VISION & MISSION STATEMENTS. So it is the responsibility of every employee of the organization to share these values, so that every employee of the organization can give their best for the achievements of these values.

➢ STAFF :

Staff means that the company has hired able people, trains them well as per the job specifications & assign them the right jobs. It is also observed that staff is given adequate trainings to get exposed to recent techniques in their respective areas. The staff members are also often job rotated to get exposed to various new tasks. Selection, training, reward, recognition, retention, motivation & assignment to appropriate work are all key issues. So it means how an organization effectively recruits, trains their people & assigns them the right job.

Human capital is very important at HSBC; the numbers of employees are increasing rapidly. HSBC BANK had just 445 employees in 1997, but in year 2002 the figures stood at 7700, &presently the strength has increased to 14000 employees. Training is a big thing at HSBC; each employee spends at least 69 hours during the year recharging himself. As a rapidly growing organization HSBC BANK gives opportunities to induct PG students from various graded business schools across the country. HSBC is very proud of its ability to nurture the individuals & to develop in them new talents which they possess. “If we are in the verge of completing the management education and believe that the amazing world of banking is for us, there is no better place to start OUR CAREER IN HSBC BANK” (1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits, distributes checks to bookkeepers and other departments, prepares exchanges for clearing houses, and turns cash over to the paying teller at end of day.

(2) Collection Department (Teller) - Collects notes, drafts and other "time" items when payable out of town, and credits accounts of depositors when collections are advised paid.

(3) General Ledger Department (Bookkeepers) - Keeps the general or control accounts of the bank, and makes up the bank's statement of condition.

(4) Auditor's Department (Executive) - This department is responsible for the settlement of the various departments, reconciles the accounts with other banks, and certifies interest calculations.

(5) Loan or Discount Department (Executive) - Receives notes submitted for discount or makes loans, figures discount and interest, and has charge of collateral securing loans.

➢ SKILLS :

Skills refer to the fact that employees have the skills needed to carry out the company’s strategy. Training and development help employees to do their jobs to perfection and also helps in getting acquainted with latest techniques. The skill required in HSBC BANK depends on the nature of work, their grades and designation.

4. SWOT analysis

:

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It involves monitoring the marketing environment internal and external to the company. The technique is credited to Albert

Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies.

• Strengths: attributes of the organization that is helpful to achieving the objective. • Weaknesses: attributes of the organization that is harmful to achieving the

objective.

• Opportunities: external conditions those are helpful to achieving the objective. • Threats: external conditions those are harmful to achieving the objective.

The aim of any SWOT analysis is to isolate the key environmental factors that are important to the marketing plans of the organization. SWOT groups key pieces of information into two main categories:

• Internal factors - The 'strengths' and 'weaknesses' internal to the organization, i.e., its strategies and its position in relation to its competitors.

• External factors - The 'opportunities' and 'threats' presented by the external environment and the competition.

Strengths and Weaknesses: financial, intellectual, locational, Customer service, Efficiency Competitive advantages, Infrastructure, Quality, Staff, Management, rice Delivery time, Cost Capacity etc,.

Opportunities and Threats: Economic condition, Expectations of stakeholders, Technology, Public expectations etc,.

STRENGTHS:-1. Brand Name:

The biggest strength is the tag of HSBC is going to be the largest group of MNC’s.

2. Compatible Price:

Prices of different schemes of HSBC are much more compatible than others. 3. Diversified Schemes:

We have diversified schemes, which is an exception case of HSBC.

4. Less Risk:

Our debt schemes are 100% free form market risk. Even as our portfolio is that diversified so equities are also less risky than others.

5. Easy procedures for account opening too:

We have an easy system for opening the account as it includes investment & being named as saving account for the costumer future benefits.

The main advantage of HSBC’s Debit cum ATM card is that you can access this card through any VISA supported ATM’s & withdraw your amount, without any single charge to be paid.

WEAKNESS:-1 Prone to Market Risk:

Mutual Funds depend on overall macroeconomic condition and market scenario.

2 Tough Competitions:

There is a very tough competition because of large number of Asset Management Companies.

3 Incapability of Customers:

HSBC only provides 2 types of account opening of which one is PVA (Power Vantage Account) under which an aqb of 1 lakh is to be maintained & the second one is Premier Account, under which an aqb of 25 lakh is to be maintained. This is sometimes beyond the reach of a middle class person.

OPPORTUNITIES:-1 Hoarding:

Most of the Indians have black money that too in huge amount i.e. the do not have money in banks, so approaching them is beneficial, so that through the opening of this account they can make further investment.

2 Indian Capital Market is Growing:

So more & more new investors are interested in investments. 3 Tailor Made Products:

We have tailor made products like sector specified schemes & even diversified schemes.

4 Branch Expansion:

Large no. of branches are opening day by day and even we are traping the countries having almost same type of socio-economic condition & even same culture etc.

As there are so many banks having almost same kind of schemes, so it’s tough to compete with.

2 Unawareness:

Majority of population is not aware of HSBC brand name and even because of other banking facilities which are much cheaper than HSBC’s services, so it’s hard to convince people.

3 Changing Scenario:

Our market scenario is changing day-by-day i.e. our market is fluctuating, so this makes investor hard to invest.

5. ANALYSIS OF FINANCIAL STATEMENT

:

Balance sheet for the India Branches as at 31 March 2010

(Currency: Indian rupees in thousands)

31-Mar-10 31-Mar-09 CAPITAL AND LIABILITIES

Amount of deposit kept with Reserve Bank of India under section 11(2) (b) of the Banking Regulation Act, 1949

13,933,356 10,783,356

Capital 44,991,660 44,991,660

Reserves and surplus 76,360,692 67,151,465

Deposits 557,478,247 499,702,753

Borrowings 59,208,139 84,684,459

Other liabilities and provisions 166,215,186 249,673,529

TOTAL 904,253,924 946,203,866

ASSETS

Cash and balances with Reserve Bank of India 39,716,165 37,123,770 Balances with banks and money at call and short notice 41,823,856 75,202,428

Investments 412,890,656 311,538,200 Advances 234,747,670 275,886,858 Fixed assets 8,928,756 8,353,196 Other assets 166,146,821 238,099,414 TOTAL 904,253,924 946,203,866 Contingent liabilities 8,509,535,228 8,147,158,513 Bills for collection 9,817,220 84,293,895

SUMMARY

From the above we can determine the financial position of the concern.

When comparing balance sheet of 2009 and 2010 the net worth of the company has been increased in the year 2010 when compared to 2009. The total has been increased from

946,203,866Rs to 904,253,924Rs

It shows that the company is growing year by year.

Profit and loss account for the India Branches for the year ended 31 March 2010

31-Mar-10 31-Mar-09 INCOME: Interest earned 51,658,815 63,269,285 Other income 21,354,836 26,994,218 TOTAL 73,013,651 90,263,503 EXPENDITURE Interest expended 19,146,572 26,610,018 Operating expenses 19,501,215 21,946,691

Provisions and contingencies 26,266,735 28,793,982

TOTAL 64,914,522 77,350,691

Net profit for the year 8,099,129 12,912,812

Profit brought forward 9,264,515 1,377,429

TOTAL 17,363,644 14,290,241

APPROPRIATIONS Less:

Transfer to statutory reserve 2,024,782 3,228,203

Transfer (from)/to investment reserve (335,667) 335,667

Transfer to specific reserve 206,523 84,427

Transfer to capital reserves --- 1,377,429

Balance carried over to balance sheet 15,468,006 9,264,515

TOTAL 17,363,644 14,290,241

When comparing Profit and loss account of 2009 and 2010, the net worth of the company has been increased in the year 2010 when compared to 2009. The total has been increased from 14,290,241Rs to 17,363,644Rs.It shows that the company is growing year by year.

6. LEARNING EXPERIENCE

The ten weeks summer project have helped me in learning a lot. This program helped me in understanding the various aspects of banking industry. The training, at HSBC bank was a new and challenging experience. It always remains as a dream, to get an opportunity to take up such study at a private banking sector. Unlike private sectors, the employees working in Public/Government sector do not have the right to take decision by themselves.

It was a great knowledge based and an excellent training program had in HSBC bank. While at training exposure was gained on the working environment and also the decision making process. It was a great learning experience working with the professional personalities.

I collected all the required information of the second part of the Part A that is Company profile and this gave me knowledge about the organization like their mission, vision, their background, history etc...

The Part B of the project it was more like a practical experience. The staff member’s encourage and guided me in understanding the internal aspect of the bank like how their bank structure is, their various department and their functions. They gave me a complete insight into their strategies-like what is strategy they are adopting now and in the future to achieve goals of the company.

The bank structure which prescribes the formal relationship among various position & activities were clearly defined. HSBC bank develops such kind of relationship which creates confidential understanding between the staff and department. The members in the bank were friendly and co-operative, disciplined, and prompt in their work. They make performance appraisal once in a year for promoting the employees. Decision is taken by taking the views of all the concerned employees who are affected by that decision. Employee’s suggestions are well-come and rewarded. They conduct training and development programs after identifying need for that. They organize both internal and external training.

The style which company is following is participative in nature. The decisions were made in the company and the report will be submitted to all departments. The staff members were well co-ordinate and supportive with each other.

I learnt what is the present position of the bank through the SWOT analysis.

It is very much necessary to understand the theoretical concepts of the subject. These will make an ease for the study and also helps to work efficiently. But during the training period it is needless to say that the theoretical knowledge gained at class room is entirely different from actual practice within the organization.

To conclude we may say that, to study the complete organization, pertaining to the nature of the business that they carry, nature of the work flow, ten weeks is very short, there was

a time constraints. It is a great memorable experience for me that getting experience in Corporate Environment. The project has given an opportunity to learn those practical skills. The project had helped to get familiar with the working environment which is most essential to start the career.

PART-B

CHAPTER-1

1. GENERAL

INTRODUCTION

Customer Satisfaction:

Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. It is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Customer satisfaction

occurs when the acquisition of products and /or services provides a minimum negative departure from expectations when compared with other acquisitions and when the marginal utility of a transaction is equal to or greater than preceding acquisitions.

Customer satisfaction occurs when the perception of the reward from the purchase of goods or services by the customer meets or exceeds his/her perceived sacrifice. The perception is a consequence of matching past purchase and consumption experience with the current purchase.

Customer Service and Satisfaction:

When we talk about customer service and/or satisfaction, we talk about creativity. Creativity allows us to handle or diffuse problems at hand or later on rather in the process of conducting the everyday business. We talk about how, or what, does the organization have to do to gain not only the sale but also the loyalty of the customer. We want to know the payoff of the transaction both in the short and long term. We want to know what our customers Want? We want to know if our customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met the customer’s Approval. We want to know if customers are delighted and willing to come

Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed excellence in a cab ride. As important as delightfulness is, some of us minimize it, or even totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:

Employees must adhere to a rigid chain of command Employees are closely supervised

Conflict—in whatever form—is not allowed Rewards are based on carrot-and-stick principles Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also understand the strategy for customer service quality, and next we must understand the measurement and feedback cycles of Customer satisfaction.

The customer is the person or unit receiving the output of a process on the system. In fact, it is worth emphasizing that a customer can be the immediate, intermediate, or ultimate