A PROJECT
REPORT ON
DIGITALIZATION
UNDERTAKEN IN
UNDER THE SUPERVISION OF: SUBMITTED BY:
BIPINJEET SINGH BINDRA AAKRITI CHAUHAN
RUKMINI DEVI INSTITUTE OF
ADVANCED STUDIES
DECLARATION
I hereby declare that I have carried out Summer
Training Project on the topic entitled
D I G I T AL I S AT I O N .
I further declare that this project work is based on my
original work and no part of this project has been
published or submitted to anybody.
AAKRITI CHAUHAN
Acknowledgement
I,AAKRITI CHAUHAN BBA Student in RDIAS, DELHI is highly
grateful to all those who guided me in completing this project.
First of all, I would like to pay my heartiest thanks to entire family
of HDFC BANK especially Mr. BIPINJEET SINGH BINDRA, Branch
manager, who provided me such a wonderful opportunity to do
Summer Training and provided their valuable suggestions in
understanding the work of Research Project.
Last but not the least, I would like to thanks all faculties
of RDIAS, delhi, who gave me the useful tips and
suggestions regarding project. I would like to thank my
project manager, MRS DEEPTI PATEL for imparting her
valuable guidance to me.
Words can never express the deep sense of gratitude, I feel for
HDFC BANK employees, who has been a constant source of
inspiration and encouragement for me.
AAKRITI CHAUHAN
BBA (2015-2018)
INTRODUCTION
THE TOPIC: DIGITALISATION
Digitization is of crucial importance to data processing, storage
and transmission, because it "allows information of all kinds in all
formats to be carried with the same efficiency and also
intermingled".[2] Unlike analog data, which typically suffers some
loss of quality each time it is copied or transmitted, digital data
can, in theory, be propagated indefinitely with absolutely no
degradation. This is why it is a favored way of preserving
information for many organisations around the world.
IMPORTANCE TO THE COMPANY:
The ultimate purpose of giving me this topic was to know about
the customer’s perceptions about the different products of the
bank, and to know about operational process. How these
products c a n a t t r a c t t h e m a n d h o w t h e c o m p a n y c a n
generate maximum profit by convincing
themthrough personal banker and to better understa
n d c u s t o m e r r e q u i r e m e n t a n d t o u n d e r s t a n d operational
methodology.
ORGANIZATION PROFILE
COMPANY HISTORY:
The Housing Development Finance Corporation Limited
(HDFC)was amongst the first to receive an 'in principle' approval
from the Reserve Bank of India (RBI)to set up a bank in the
private sector, as part of the RBI's liberalization of the
Indian Banking I n d u s t r y i n 1 9 9 4 . T h e b a n k w a s
i n c o r p o r a t e d i n A u g u s t 1 9 9 4 i n t h e n a m e o f 'HDFC
Bank Limited', with its registered office in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial Bank in
January 1995.
.
PROMOTER
HDFC is India's premier housing finance company and
enjoys an impeccable track record in I n d i a a s w e l l a s i n
international markets. Since its inception in 1977,
t h e C o r p o r a t i o n h a s maintained a consistent and
healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio cov ers
well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large
s h a r e h o l d e r b a s e a n d u n i q u e c o n s u m e r franchise,
HDFC was ideally positioned to promote a bank in the Indian
environment.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian
Bank. The objective is to build sound customer franchises
across distinct businesses so as to be the preferred
provider of banking services for target retail and
wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest
level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Bank's
business philosophy is based on four core values –
Operational Excellence, Customer Focus, Product Leadership and
People
.
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs 550 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 American Depository Shares (ADS) Issue).
Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs)a n d t h e b a n k h a s a b o u t 5 7 0 , 0 0 0
shareholders.The shares are listed on the Stock
E x c h a n g e , Mumbai and the National Stock Exchange. The
bank's American Depository Shares are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB'.
DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at
present has an enviable network of over 1229 branches
spread over 444 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also
serviced through Telephone Banking. The Bank's expansi on
plans tak e into acc ount the need to have a pr es enc e
i n all maj or indus trial and commercial centers where its
corporate customers are located as well as the need to
build a strong retail customer base for both deposits and loan
products. Being a clearing/settlement bank to various leading
stock exchanges, the Bank has branches in the centers where the
NSE/BSE has a strong and active member base. The Bank
also has a network of about over 2526 networked
ATMs across thes e ci ties. Moreov er, HDFC Bank 's
ATM network c an be acc essed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus
and American Express Credit/Charge cardholders.
FIVE “S” PART OF KAIZEN
Focus on effective work place organization
believe in
“Small changes lead to large improvement”
Every successful organization have their own strategy to win the
race in the competitive market They use some technique and
methodology for smooth running of business. HDFC BANK also
acquired the Japanese technique for smooth
running of work and effective work place
organization.
Five ‘S’ Part of Kaizen is the technique which is used in the bank
for easy and systematic work place and eliminating unnecessary
things from the work place.
BENEFIT OF FIVE “S”
• It can be started immediately.
• Every one has to participate.
• Five “S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage are made visible.
FIVE ‘S’
S-1 SORT SEIRI
S-2 SYSTEMATIZE SEITON
S-3 SPIC-N-SPAN SEIRO
S-4 STANDARDIZE SEIKETSU
S-5 SUSTAIN SHITSUKE
1.SORT:
It focus on eliminating unnecessary items from the work
place. It is excellent way to free up valuable floor space. It
segregate items as per “require and wanted”.
2. SYSTEMATIZE
Systematize is focus on efficient and effective Storage method.
That means it identify, organize and arrange retrieval. It largely
focus on good labeling and identification practices.
Objective: “A place for everything and everything in its place”.
3. SPIC- n - SPAN
Spic-n-Span focuses on regular clearing and self inspection. It
brings in the sense of ownership.
4. STANDERDIZE
It focuses on simplification and standardization. It
involves standard rules and policies. It establish checklist to
facilitate autonomous maintenance of workplace. It assigns
responsibility for doing various jobs and decides on Five S
frequency.
5. SUSTAIN:
It focuses on defining a new status and standard of organized
work place. Sustain means regular training to maintain standards
developed under S-4. It brings in self- discipline and commitment
towards workplace organization.
COLOR CODING
In the HDFC BANK each department has their different color
coding apply on the different file. Due to this everyone aware
about their particular color file which is cod ing on it and
they save their valuable time. It is a part of Kaizen and
also included in the system of the Five ‘S’. Logic behind it
that, the color coding are always differentiate the things from the
similar one.
Particularly in the retail banking businesses in line with
the business growth. Total number of employees increased
from 14878 as of March31, 2006 to 21477 as of March 31,
2008.The Bank continues to focus on training its employees
on a continuing basis, both on the job and through training
programs conducted by internal and external faculty. The Bank
has consistently believed that broader employee ownership of its
shares has a positive impact on its performance and employee
motivation. The Bank’s employee stock option scheme so far
covers around 9000 employees.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July
2001. Prior to this, Mr. Capoor was a Deputy Governor of the
Reserve Bank of India. The Managing Director, Mr. Aditya Puri,
has b e e n a p r o f e s s i o n a l b a n k e r f o r o v e r 2 5 y e a r s
and before joining HDFC Bank in 1994
washeading Citibank's operations in Malaysia. The
B a n k ' s B o a r d o f D i r e c t o r s i s c o m p o s e d o f eminent
individuals with a wealth of experience in public policy,
administration, industry and
commercial banking. Senior executives representing
H D F C a r e a l s o o n t h e B o a r d . S e n i o r banking
professionals with substantial experience in India and
abroad head various businesses a n d f u n c t i o n s a n d
report to the Managing Director. Given the
p r o f e s s i o n a l e x p e r t i s e o f t h e management team and the
overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant
competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms
of information technology and communication systems. All the
bank's branches have online connectivity, which enables
the b a n k t o o f f e r s p e e d y f u n d s t r a n s f e r f a c i l i t i e s t o i t
s customers. Multibranch access is also provided to
retail customers through the branch network and
A u t o m a t e d T e l l e r M a c h i n e s (ATMs). The Bank has made
substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for
a world class bank. The Bank's business is supported by
scalable and robust systems which ensure that our clients
always get the finest services we offer. The Bank has
prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-
enabling its core businesses. In each of its businesses, the
Bank has succeeded in leveraging its market position,
expertise and technology to create a competitive advantage and
build market share.
HDFC BANK business strategy emphasizes the
following:
Increase market share in India’s expanding banking and fi
nancial services industry byfollowing a disciplined growth
strategy focusing on quality and not on quantity and delivering
high quality customer service. Leverage our technology platform
and open scale able systems to deliver more products to more
customers and to control operating costs.
Maintain current highstandards for asset quality through discipline
d credit risk management. Developed innovative products
and services that attract the targeted customers and address
inefficiencies in the Indian financial sector. Continue to
develop products and services that reduce bank’s cost of
funds. Focus on high earnings growth with low volatility.
PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to
meet the every need of the people. The company cares for
both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts,
investment, and pension scheme, different types of loans and
cards that assist the customers. The customers can
choose the suitable one from arrange of products which will
suit their life-stage and needs. For organizations the company has
ah o s t o f c u s t o m i z e d s o l u t i o n s t h a t r a n g e f r o m f u n d e
d s e r v i c e s , N o n - f u n d e d s e r v i c e s , V a l u e addition
services, Mutual fund etc. These affordable plans apart from
providing long term value to the employees help in enhancing
goodwill of the company. The products of the company are
categorized into various sections which are as follows:
•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
•Reimbursement Current Account
Fixed Deposit
•Regular Fixed Deposit
•Super Saver Account
•Sweep-in Account
Recurring DepositDemat AccountSafe Deposit LockerB.
Loans
•Personal Loans
•Home Loans
•Two Wheeler Loans
•New Car Loans
•Used Car Loans
•Overdraft against Car
•Express Loans
•Loan against Securities
•Loan against Property
•Commercial Vehicle Finance
•Working Capital Finance
•Construction Equipment Finance
C. Investments & Insurance
•Mutual Funds
•Insurance
•Bonds
•Financial Planning
•Knowledge Centre
•Equities & Derivatives
•Mudra Gold Bar
D. Forex Services
•Trade Finance
•Traveler’s Cheques
•Foreign Currency Cash
•Foreign Currency Drafts
•Foreign Currency Cheque Deposits
•Foreign Currency Remittances
•Forex Plus Card
E. Payment Services
•Net Safe
•Prepaid Refill
•Bill Pay
•Direct Pay
•Visa Money Transfer
•E-Monies Electronic Funds Transfer
•Excise & Service Tax Payment
F. Access Your Bank - One View
•Insta Alerts
•Mobile Banking
•ATM
•Phone Banking
•Branch Network
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 Card
2. WHOLESALE 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
3. 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
•Remittances
QUALITY POLICY SECURITY:
The bank provides long term financial security to their policy. The
bank does this by offering life insurance and pension products.
TRUST:
The bank appreciates the trust placed by their policy holders in
the bank. Hence, it William to manage their investments very
carefully and live up to this trust.
INNOVATION:
Recognizing the different needs of our customers, the
bank offers a range of innovative products to meet these
needs.
INTEGRITY CUSTOMER CENTRIC PEOPLE CARE “ONE FOR
ALL AND ALL FOR ONE”TEAM WORK JOY AND SIMPLICITY
DIGITALISATION
Online banking, also known as internet banking, e-
banking or virtual banking, is an electronic payment system that
enables customers of a banker other financial institution to
conduct a range of financial transactions through the financial
institution's website. The online banking system will typically
connect to or be part of the core banking system operated by a
bank and is in contrast to branch banking which was the
traditional way customers accessed banking services.
Fundamentally and in mechanism, online banking, internet
banking and e-banking are the same thing.
To access a financial institution's online banking facility, a
customer with internet access would need to register with the
institution for the service, and set up a password and
other credentials for customer verification. The credentials for
online banking is normally not the same as
for telephone or mobile banking. Financial institutions now
routinely allocate customers numbers, whether or not customers
have indicated an intention to access their online banking facility.
Customers' numbers are normally not the same as account
numbers, because a number of customer accounts can be linked
to the one customer number. The customer number can be linked
to any account that the customer controls, such as cheque,
savings, loan, credit card and other accounts.
The customer visits the financial institution's secure website, and
enters the online banking facility using the customer number and
credentials previously set up. The types of financial transactions
which a customer may transact through online banking usually
includes obtaining account balances, lists of the latest
transactions, electronic bill payments and funds transfers between
a customer's or another's accounts. Most banks also enable a
customer to download copies of bank statements, which can be
printed at the customer's premises (some banks charge a fee for
mailing hardcopies of bank statements). Some banks also enable
customers to download transactions directly into the customer's
accounting software. The facility may also enable the customer to
order cheque-books, statements, report loss of credit cards, stop
payment on a cheque, advise change of address and other
routine actions.
Today, many banks are internet only institutions. These web-
based banks incur lower overhead costs than their brick-and-
mortar counterparts, enabling them to pass on the savings to
customers. Many online banks are FDIC-insured and offer the
same level of protection for the funds of their customers that
traditional banks do.
1. NET BANKING
HDFC Bank offers you a comprehensive range of transactions
across multiple products through its Net Banking channel. So just
log in to Net Banking and conduct 200+ transactions from the
comfort of your home or office.
You can check your Account Balance, book Fixed and Recurring
Deposits, Download A/c Statement up to 5 years, pay your Bills,
Recharge your Mobile/ DTH connection, and much more in a
secure environment.
You can log in to Net Banking using your Customer ID and IPIN
(password).
Experience Convenience ... Choose Net Banking!
1.1 WHY USE NT BANKING?
Customers can manage their account conveniently through the
Internet.
200+ transactions available on Net Banking
Up-to-the-second details of your account
Access anytime, from anywhere
No queues to stand in, or turns to wait for
1.2 SAFETY ON USING NET BANKINg
Login Security;
Access to customer's NetBanking account is granted using a
Customer ID and IPIN (internet banking password) that is privy to
the customer. Without a valid IPIN corresponding to the customer
ID, access to customer account cannot be gained by anyone.
IPIN Security:
IPIN is randomly generated by the system and directly printed
on tamper proof media that it is not accessible by anyone other
than the customer.
Customer is forced to change his IPIN such upon first login such
that customer is assured that IPIN is not compromised before
delivery.
IPIN is stored by the Bank by use of encryption technology such
that it is not accessible to anyone including the system
administrator.
IPIN can be generated online using the Debit Card details plus
One Time Password (OTP) authentication on the registered
mobile number.
Session Security:
Access to the customers are provided through a secure
webpage that encrypts the session between the customer's
computer and the webpage using 128-bit encryption so that the
communication between the customer's computers and the
webpage cannot be intercepted by anyone over the internet.
HDFC Bank systems time out the customer's login sessions to
his NetBanking account upon prolonged inactivity for protection
against misuse.
1.3 ALL ABOUT NET BANKING
NetBanking is an incredibly convenient and powerful tool, letting
you do everything you want with your accounts at the click of a
mouse.
It is Real Time, giving you up-to-the-second details on your
account.
All you need to do is Log in using your Customer ID
and IPIN (NetBanking password).
Your Customer ID is mentioned on your account statement/
account welcome letter/ chequebook. (Current account / HUF
customers can obtain this from the branch). You can re-generate
your IPIN online in 3 easy steps.
Some of the transactions you can do through NetBanking are:
Check your account balances and download 5 year account
statement in 5 formats, instantly
Book Fixed Deposit / Recurring Deposit
Pay Utility Bills
View your Credit Card details and pay your Credit Card Bills
Recharge your Prepaid Mobile & DTH Connections
Invest in Mutual Funds Online
Book IRCTC Tickets online
Purchase a Gift Card
Pay your Taxes online
Update your PAN Details online
View your Tax Credit Satement (Form 26 AS)
Request for a Demand Draft/ Chequbook
Request Stop Payment of a Cheque/ Hotlist you Debit Card/
Credit Card
View your Loan details
Apply for IPO
Request for Debit Card PIN Regeneration
Register for Third Party Transfer
Transfer funds between accounts within HDFC Bank and other
Bank Accounts
2. CHILLR APP
Chillr is a multi-bank mobile banking app that lets users send and
receive money to/from anyone in their phone book. Chillr
differentiates from online wallets as all fund transactions are
between bank accounts. It was listed in the “App Store Best of
2015”[2] on the IOS platform in India. Chillr is the only
Financial/Banking app to be listed in this category.
Chillr
Type Privately held company
Industry Fintech
Founded 2014 in Mumbai, India
Founder Sony Joy
Headquarters Mumbai, India
Area served India
Parent Backwater Technologies [1]
Website chillr.in
2.1 HISTORY
Chillr was conceptualized within MobME and spun off as a
subsidiary after a year. It is currently being led by Sony Joy, who
co-founded MobME Wireless Solutions with two of his college
friends back in 2006. Chillr means pocket change in many Indian
languages and is something everyone is used to dealing with and
making payments with.
2.2 SERVICE
Chillr is the fastest and easiest way to send money between bank accounts and
works even on bank holidays.It is linked directly to your bank account to offer you
following services:
Pay - Make direct payments to other bank account or through tags.
Collect - Request for money or split bills.
Utilities - Recharge your mobile phone, data card, DTH & BookMyShow
Wallet with Chillr.
Scan & Pay - Pay at merchant stores by scanning QR code.
Timeline - Chillr is the first Indian mobile banking app that gives you the
option of sharing your transactions with your friends, much like a social media
feed.
3. PAYZAPP
HDFC Bank PayZapp, a complete payment solution, giving you
the power to pay in just One Click.
With PayZapp, you can shop on your mobile at partner apps, buy
movie tickets, music and groceries, compare and book flight
tickets and hotels, shop online and get great discounts at
SmartBuy, send money to anyone in your contact list, pay bills
and recharge your mobile, DTH and data card.
So link your Debit and Credit Card to PayZapp and enjoy the
most convenient and secure way of payment.
Cards link karo ek baar, pay karo baar baar!
3.1 WHY PAYZAPP
1.Its Convenient: Cards link karo ek baar, pay karo baar baar!
No need to preload money everytime. Pay directly from linked
Debit and Credit Card
2.Its Fast: Make payments in an instant with just one click
3.Its Secure: Your card details are safe with the Bank and not
stored on your mobile phone or partner apps
CONCLUSIONS:
HDFC Bank, the banking arm of HDFC is expected to go on
stream. The bank already has good number of employees on
board and is recruiting personal banker heavily to take the
headcount to many more. It is on the brim of increasing its
customers through its attractive schemes and
offer.T h e p r o j e c t o p p o r t u n i t i e s p r o v i d e d w a s m a r k e t s
e g m e n t a t i o n a n d i d e n t i f y i n g p r o s p e c t i v e customers
in potential geographical location and convincing them to
attract more customers so that new business opportunities
of the bank can be explored. Through this project, it could
be concluded that people are not much aware about the
various products of the bank and many of t h e m n o t
interested to open an account, to invest money at
a l l . s e r v i c e s w a s c o n s i d e r e d a s unsought good which
require hard core selling, but in changing trend in income
and people becoming financially literate, the demand for banking
sector is increasing day by day. So, at last the conclusion is that
there is tough competition ahead for the company from its
major competitors in the banking sector. Last but not the
least I would like to thank HDFC Bank for giving me an
opportunity to work in the field of Marketing and
Operation. I hope the company finds my analysis relevant
BIBLIOGRAPHY1.
BOOKS
M a r k e t i n g M a n a g e m e n t ( 1 0 thE d i t i o n ) , M a r k e t i n g M a n
a g e m e n t ( 3 rdE d i t i o n ) , R e s e a r c h Methodology (2nd
Edition), Research Methodology(3rdEdition).
AUTHORS:
Philip Kotler ,V.S. Ramaswamy, C.R.Kothary, S.P. Kasande
NEWS PAPERS
• Times of India • Financial Express
WEBSITES
www.hdfcbank.com, www.google.com
